Compare Axis Bank Car Loan vs SBI Car Loan in 2025 to discover interest rates, EMIs, fees & benefits. Choose smartly with expert loan insights.
Choosing the right car loan in 2025 requires a detailed understanding of what each bank offers. Two of India’s most prominent lenders Axis Bank and State Bank of India (SBI)—provide highly competitive car loan products. From interest rates to repayment flexibility, and from eligibility to processing fees, everything varies slightly between the two, making your decision crucial to avoid long-term financial pressure.
This guide provides a side-by-side breakdown of Axis Bank Car Loan vs SBI Car Loan—helping you understand interest slabs, funding percentage, loan tenure, documentation requirements, eligibility, prepayment clauses, and digital services. We’ve incorporated real semantic SEO terms, NLP phrases, expert comparisons, and use-case-driven recommendations to ensure you make a well-informed, future-ready car loan decision.
What Is a Car Loan and Why It Matters in 2025?
A car loan is a secured loan provided by banks and NBFCs to help individuals purchase new or used vehicles. In 2025, with rising fuel-efficient car demand, EV financing, and increased CIBIL score awareness, choosing the right car loan product can directly impact your total cost of ownership. Your choice of bank affects:
Monthly EMIs
Total interest paid
Early closure flexibility
Loan-to-value (LTV) ratio
Customer support & online services
Now, let’s compare Axis Bank vs SBI Car Loan on all critical fronts.
Axis Bank Car Loan 2025 – Features, Eligibility & Fees
Axis Bank is known for tech-driven car loan solutions, ideal for salaried and self-employed borrowers seeking fast approvals and minimal documentation.
Key Features:
Interest Rate: Starts from 8.70% per annum
Loan Tenure: Up to 7 years
Loan Amount: Up to 100% of ex-showroom/on-road price (selected models)
Processing Fee: Fixed, starting from ₹3,500
Prepayment Charges: Nominal (varies by tenure and payment type)
Disbursal Time: Within 2 working days (subject to approval)
Eligibility Criteria:
Age: 21 to 70 years
Income: Minimum ₹2.4 lakh/year
Profile: Salaried, self-employed, or business owners
CIBIL Score: Minimum 700 recommended
Documentation:
PAN, Aadhaar, utility bill (address proof)
Income proof: ITR, salary slips, bank statements
Car quotation/proforma invoice
SBI Car Loan 2025 – Benefits, Interest & Terms
SBI Car Loan, backed by a government-owned bank, remains popular due to its transparency, slightly lower interest rates, and zero prepayment charges on floating-rate loans.
Key Features:
Interest Rate: Starts from 8.65% per annum
Loan Tenure: Up to 7 years
Loan Amount: Up to 90% of on-road price
Processing Fee: 0.40% of loan amount
(Minimum ₹1,000 – Maximum ₹10,000)Prepayment Charges: Zero on floating loans
Digital Application: Available via SBI YONO app
Eligibility Criteria:
Age: 21 to 70 years
Net Annual Income: Minimum ₹3 lakh
Indian resident with valid KYC
Clean credit history preferred
Documentation:
PAN, Aadhaar, address proof
Income docs: ITR, salary slips (last 3 months)
Vehicle invoice or quotation
Interest Rate Comparison – Axis vs SBI
| Bank | Starting Interest Rate | Max LTV | Processing Fee |
|---|---|---|---|
| Axis Bank | 8.70% p.a. | Up to 100% | ₹3,500 fixed |
| SBI | 8.65% p.a. | Up to 90% | 0.40% (₹1,000–₹10,000) |
Verdict: SBI wins on base interest rate and transparent charges, while Axis offers better funding (especially for premium or electric vehicles).
EMI Flexibility & Tenure Options
Both banks offer a maximum of 84 months tenure. However:
Axis Bank may offer lower EMIs with full on-road price funding
SBI’s EMI plans are consistent, making it easier for monthly budget planning
Use the [Personal Loan EMI Calculator – nicgujarat.com] to simulate various scenarios.
Prepayment & Foreclosure Rules
Axis Bank: Charges prepayment fees (0%–5%) depending on timing and borrower type
SBI: Offers zero prepayment penalty on floating-rate loans (ideal for early closure)
Processing Charges – Transparency vs Simplicity
Axis: Fixed fee (easy to plan)
SBI: Percentage-based, but transparent with clear limits
Online Services & Application Experience
Both banks allow digital application, but:
Axis leads with faster app-based approval, e-verification, and API-based document checks
SBI offers wide offline accessibility with 22,000+ branches
Real Use Case Example:
Ravi, a salaried engineer in Gujarat, compared car loans for a Maruti Grand Vitara worth ₹12 lakh:
Axis Bank approved ₹12 lakh loan at 8.70% → EMI: ₹19,180 (7 yrs)
SBI approved ₹10.8 lakh loan (90%) at 8.65% → EMI: ₹17,820
(He had to pay ₹1.2 lakh upfront)
He chose Axis for 100% funding and convenience.
When to Choose Axis Bank Car Loan?
- You need full vehicle financing (zero down payment)
- Prefer app-based, paperless processing
- Want predictable fixed processing charges
- Plan to buy a new car or premium model with higher price tag
When to Choose SBI Car Loan?
- You want lower interest rates and zero prepayment penalty
- Trust government-backed service & in-person banking
- You plan to pre-close your loan before full tenure
- Suitable for middle-income salaried profiles
FAQs – Compare Axis Bank Car Loan vs SBI Car Loan
Q1. What is the minimum CIBIL score required for Axis Bank car loan?
A score of 700+ is preferred. Applicants with lower scores may face higher interest rates or rejection.
Q2. Can I apply online for SBI or Axis Bank car loan?
Yes, both banks offer online application portals with document upload and loan tracking features.
Q3. Which bank offers faster disbursement: Axis or SBI?
Axis Bank is generally faster with disbursement due to fewer documentation hurdles and tech integration.
Q4. Does SBI offer 100% car loan financing?
No, SBI typically offers up to 90% of the on-road price, unlike Axis Bank which may finance 100% on select models.
Q5. Are there zero prepayment charges in both banks?
SBI offers zero prepayment charges for floating rate loans. Axis Bank has nominal prepayment fees.
Q6. Which bank has more branches for offline access?
SBI has a wider branch network, especially in rural and semi-urban areas.
Q7. Can I transfer my existing car loan from one bank to another?
Yes, both banks allow balance transfer options subject to conditions and eligibility.
Q8. Do I need a guarantor for a car loan?
Usually not required if you meet income and credit score norms, though some cases might demand it.
Q9. What is the typical processing time for car loan approval?
Axis processes faster (1-3 days); SBI may take slightly longer depending on documentation.
Q10. Which bank is better for self-employed individuals?
Axis Bank is often more favorable for self-employed applicants due to flexible income documentation norms.
Important Links
| Axis Bank officials website | click here |
| SBI Bank officials website | click here |
| home page | click here |
| Join WhatsApp group | join here |
Authoritative External Links
Suggest Also Read
Axis Bank Loan EMI Bounce Charges 2025 – Penalty & Prevention Tips
Bank of Baroda Car Loan 2025 – 100% Financing, EV Loans & Special Offers
Conclusion
When comparing Axis Bank Car Loan vs SBI Car Loan in 2025 , the best choice depends on your priorities. SBI leads in trust and lower rates; Axis leads in speed and tech. Evaluate your repayment capacity, vehicle model, and tenure preference to choose the bank that works best for you.
Stay tuned to nicgujarat.com for more trusted loan guides and financial comparisons