Your Dream of Buying a Car Will Come True, This Bank is Offering Affordable Car Loans, Read the Details

Affordable Car Loans: Everyone dreams of owning a car, but rising inflation and daily expenses make buying a car a pipe dream. But now you don’t need to worry. Your dream is about to come true. Before the New Year, the Reserve Bank of India provided significant relief to the public. The RBI has reduced the repo rate by 0.25%, which will directly benefit car loan borrowers. As the repo rate decreases, bank loan interest rates decrease, and EMIs also immediately reduce. Previously, the central bank reduced the repo rate in February, April, and June of 2025. With the latest reduction, car loan installments have become even cheaper.

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SBI New Car Loan Interest Rate

According to the official website of SBI, the country’s largest public sector bank, the interest rate on car loans was 8.75% until October 13, 2025. However, following a 25 basis point rate cut by the RBI, the bank has reduced this rate to 8.50%. While this reduction may seem small, its impact on EMIs is clearly visible and results in significant savings in the long run.

How much reduction in EMI on a car loan of Rs 10 lakh?

Suppose a customer takes a car loan of Rs 10 lakh for a 5-year term. Previously, the EMI was Rs 20,673 at an interest rate of 8.75%. Now, with the new interest rate of 8.50%, the EMI has reduced to Rs 20,517, a monthly savings of approximately Rs 120.

How much relief on a car loan of Rs 15 lakh?

The EMI on a car loan of Rs 15 lakh was previously Rs 30,956. Now, with the implementation of the 8.50% interest rate, the EMI has reduced to Rs 30,775. This translates to a monthly savings of approximately Rs 181.

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How much savings on a car loan of 20 lakhs?

The EMI on a car loan of 20 lakhs was previously 41,274 rupees. However, with the new interest rate, the EMI has been reduced to Rs 41,033. This translates into a monthly savings of approximately 241 rupees. This translates into significant savings over a year.