Best Car Loans in India 2025: Low Rates from 6.85% p.a.
Drive your dream car with LoanPao’s best car loans in India 2025. Enjoy low interest rates starting at 6.85% p.a., approvals in 24 hours, and flexible EMIs up to 7 years for new and used cars.
Apply NowBest Car Loans in India 2025: Drive Your Dream Car
LoanPao offers the best car loans in India 2025 to help you purchase your dream vehicle, whether new, used, or electric. With India’s auto market growing by 10–12% annually, our car loans provide competitive rates from 6.85% p.a., tenures up to 7 years, and financing up to 100% of the on-road price. Partnered with 250+ RBI-compliant lenders like SBI, HDFC, and ICICI, we ensure fast approvals in 24 hours, minimal paperwork, and tailored solutions for cities like Delhi, Gurugram, and Noida.
Key Features of LoanPao Car Loans
- Loan Amount: Up to 100% of the car’s on-road price, based on eligibility.
- Interest Rates: Starting at 6.85% p.a. (fixed or floating) for new and used cars.
- Tenure: Flexible repayment periods up to 7 years for affordable EMIs.
- Digital Process: Apply online with e-KYC and get instant pre-approvals.
- No Prepayment Penalties: Zero or minimal penalties for floating-rate loans, per RBI guidelines.
- Special EV Loans: Exclusive offers for electric vehicles with tax benefits.
Whether you’re eyeing a hatchback, SUV, or electric vehicle, LoanPao’s car loans make financing easy and affordable. Apply now to hit the road!
Car Loan Interest Rates in India 2025
Compare car loan rates from top lenders to find the best deal. Rates vary based on credit score, income, and vehicle type (new, used, or electric).
| Lender | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| State Bank of India | 6.85%–8.25% | 0.25%–1% |
| HDFC Bank | 7.10%–9.00% | Up to 0.5% |
| Axis Bank | 7.45%–9.50% | Up to 1% |
| ICICI Bank | 7.25%–9.75% | 0.5%–2% |
Loan Comparison Tool
Our Loan Comparison Tool helps you compare car loan rates, tenures, and fees from 250+ lenders in real-time. Input your loan amount, tenure, and credit score to find the most cost-effective option.
Compare NowWhy Choose LoanPao for Car Loans?
LoanPao is your trusted partner for car loans in India 2025, offering seamless digital applications, 24/7 support, and partnerships with over 250 RBI-compliant lenders. Our IRDAI-certified experts ensure transparency and compliance.
Low Rates
Competitive rates starting at 6.85% p.a.
Quick Approvals
Approvals within 24 hours with minimal paperwork.
Trusted Partners
Access 250+ banks and NBFCs.
Eligibility Criteria for Car Loans
Check if you qualify for a LoanPao car loan:
- Age: 21–65 years.
- Income: ₹20,000+/month (salaried) or ₹2.5 lakh p.a. (self-employed).
- Credit Score: 700+ for lower rates and better terms.
- Employment: 1+ years (salaried) or 2+ years (self-employed).
- Tip: Adding a co-applicant with a strong credit profile can improve eligibility.
Car Loan Application Process
Apply for your car loan in 5 simple steps with LoanPao:
- Submit your application on LoanPao’s online platform.
- Provide ID, income, and vehicle details (e.g., car quotation).
- Receive pre-approved offers from top lenders.
- Complete KYC and vehicle valuation verification.
- Get funds disbursed in 24–48 hours.
EMI Calculator
Use our EMI Calculator to estimate your monthly payments and total interest based on loan amount, tenure, and interest rate. Plan your budget effectively!
Calculate EMITypes of Car Loans Available
LoanPao offers a variety of car loan options to meet your needs:
- New Car Loan: Finance up to 100% of the on-road price for new vehicles.
- Used Car Loan: Affordable rates for pre-owned cars, up to 80% of valuation.
- Loan Against Car: Use your existing car as collateral for quick funds.
- Top-Up Loan: Get additional funding on your existing car loan.
- Electric Vehicle Loan: Special schemes with lower rates and tax benefits for EVs.
Market Insights for Car Loans in 2025
India’s auto sales are projected to grow by 10–12% in 2025, driven by demand for electric vehicles (EVs) and SUVs. With RBI’s repo rate at 5.50%, car loan rates are more affordable. Government incentives for EVs, like FAME-III, offer tax benefits and lower rates. Learn more in our blog on financing your dream car.
Testimonials
“LoanPao got me a 6.95% car loan in just 24 hours. The process was seamless!”
Ravi Kumar, Bangalore“Their comparison tool saved me ₹1.5 lakh in interest. Highly recommend LoanPao!”
Priya Sharma, Chennai“Got an EV loan at 6.85% with tax benefits. LoanPao made it super easy!”
Amit Singh, DelhiFrequently Asked Questions
Documents Required for Car Loans
Ensure a smooth car loan application with these documents:
- Identity Proof: Aadhaar, PAN, Passport, or Voter ID.
- Address Proof: Aadhaar, Utility Bill, or Rental Agreement.
- Income Proof: Salary slips (3 months), ITR (2 years), or Form 16.
- Vehicle Documents: Car quotation (new cars), RC (used cars).
- Bank Statement: Last 6 months.
Tips to Secure the Best Car Loan in 2025
Maximize your car loan benefits with these expert tips:
- Check Your Credit Score: A score above 700 ensures lower interest rates.
- Compare Lenders: Use LoanPao’s comparison tool to find the best rates.
- Opt for Shorter Tenure: Reduces total interest paid over the loan term.
- Negotiate Fees: Request lenders to waive or reduce processing fees.
- Explore EV Loans: Take advantage of special schemes for electric vehicles.
Ready to finance your dream car? Apply now with LoanPao for the best car loans in India 2025!