Car Loan Interest Rate in India: Fixed vs Floating and EMI Impact

In this short

• CAR LOAN GUIDE Fixed Or Floating Car Loan? Understand benchmarks, resets and the EMI impact before signing a vehicle-loan offer.
• CURRENT SIGNAL The Current Benchmark Matters 5.25% The RBI current-rates page listed the policy repo rate at 5.25% as at 01 Oct, 2026.
• THE MECHANISM Floating Rate Means Benchmark Plus Spread The loan agreement should name the benchmark, spread, reset date and communication method.
• EMI EXAMPLE A Small Rate Move Adds Cost ₹122/month The worked example shows how repricing a full loan term can change the monthly payment.
• RESET CHECK Ask What Changes After Reset The lender may change the EMI, extend the remaining term, or use both methods under the contract.
• COMPARE TERMS Check APR Spread And Fees Compare the all-in cost, prepayment terms and switch charges instead of only the headline rate.
• READ THE FULL GUIDE Get the complete breakdown Numbers, comparisons and what to check next.