Planning to Buy a Car? Check EMI for a ₹5 Lakh Loan from SBI, HDFC, ICICI for 5 Years

10:50 AM, 6 October 2025

The festive season is an excellent time to buy a new car. With recent GST cuts reducing car prices and banks offering special loan schemes with lower interest rates and processing fee waivers, the deals are attractive. Here's a look at the current car loan interest rates and EMIs from top banks.

Why Now is a Good Time to Buy:

Festive Offers: Banks have launched special offers for the Diwali and Dhanteras season.

Lower Car Prices: The government's GST reform has reduced the tax on cars from a 28% slab to 18%, leading to price cuts by manufacturers.

Attractive Loans: Banks are offering loans at reduced interest rates, starting as low as 7.60%.

Car Loan EMI for ₹5 Lakh (5-Year Tenure)

Bank	Interest Rate (p.a.)	Approx. Monthly EMI (₹)	Processing Fee
Yes Bank	7.60% - 10.25%	₹10,043 - ₹10,685	Up to 0.50% of loan amount
Punjab National Bank	7.85% - 9.70%	₹10,102 - ₹10,550	Up to 0.25% of loan amount
ICICI Bank	9.10% onwards	₹10,403 onwards	Up to 2.00% of loan amount
HDFC Bank	9.20% onwards	₹10,428 onwards	Up to 1.00% of loan amount
State Bank of India (SBI)	8.80% - 9.90%	₹10,331 - ₹10,599	Zero (Currently Waived)

Special Note on SBI: The bank has waived processing fees on auto loans and also removed prepayment and foreclosure charges during this festive period.