Cheapest Car Loans: 4 Public Sector Banks Offer Low EMIs on 12 Lakhs for 4 Years
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News18•18-01-2026, 12:31
Cheapest Car Loans: 4 Public Sector Banks Offer Low EMIs on 12 Lakhs for 4 Years
- •Four public sector banks—Indian Overseas Bank, Canara Bank, Union Bank of India, and Bank of India—offer competitive car loan interest rates.
- •Interest rates start from as low as 7.40% (mentioned in intro) or 7.50% (Union Bank of India) for new car purchases, especially for those with good credit scores.
- •Indian Overseas Bank offers 7.60% with an 84-month repayment period and co-borrower options.
- •Canara Bank provides loans at 7.95% with no upper limit on loan amount, up to 90% financing, and no pre-payment penalties.
- •Union Bank of India offers 7.50% with a flat processing fee of Rs 1,000 + GST; Bank of India offers 7.60% with daily reducing balance interest calculation and EV discount on processing fees.
Why It Matters: Public sector banks offer highly competitive car loan rates, significantly reducing EMIs and total interest paid.
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