Car loan rates start at 7.35% in September 2026: Check SBI, BoB, Bank of India, and other PSU bank offers — SkimNews
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- PSU banks are offering car loans at starting rates below 8% as of 16 September 2026, though the article stresses the headline rate typically shifts based on credit score, income history, recent defaults, and existing relationship with the lender.
- Paisabazaar data shows EMIs for a ₹5 lakh, 5-year car loan range from ₹9,983 to ₹11,647 across PSU lenders — a monthly gap of roughly ₹1,664 that compounds into a meaningful total-interest difference.
- Bank of Maharashtra is offering a 0.25% interest-rate concession for eligible existing customers, positioning it as a rate-focused play for current account holders.
- Canara Bank is waiving 50% of its processing fee through 30 September 2026, making it the time-bound cost play of the group.
- Punjab & Sind Bank is offering up to 50% processing-fee concession under its PSB Apna Vahan Sugam scheme.
- The article flags that headline rates alone mislead borrowers: a lower EMI from longer tenure can mean higher total interest, and processing fees can erase a marginally cheaper rate.
- Shivam Shukla, the author, advises prospective buyers to check prepayment penalty terms and to seek advice from a certified financial planner before signing.
Why it matters: On a ₹5 lakh, 5-year car loan, the gap between the cheapest and priciest PSU EMI works out to about ₹1,664 a month — nearly ₹1 lakh over the loan life — meaning the lender a borrower picks can swing total interest paid by tens of thousands of rupees, especially once processing fees and prepayment terms are factored in.
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