Giving relief to the people before the New Year, the Reserve Bank of India has reduced the repo rate by 0.25%. The benefit of lower repo rate is immediate, because it directly reduces the EMI of the car loan. Even before this, RBI had reduced the repo rate in the months of February, April and June in 2025. Now after the new deduction, the EMI of car loan has become lower than before. Let us know in detail.
What is the new car loan interest rate of SBI?
- According to the SBI website, till October 13, 2025, the car loan interest rate was 8.75%, but after the cut of 25 basis points by RBI, this rate has come down to 8.50%. Even this small reduction in interest rate has a noticeable impact on EMI and results in good savings in the long run.
How much is the EMI reduced on a car loan of Rs 10 lakh?
- If a customer takes a car loan of Rs 10 lakh for 5 years, then earlier he had to pay EMI of Rs 20,673 every month at 8.75% interest. Now at the new rate of 8.50%, EMI has reduced to Rs 20,517, which saves about Rs 120 every month.
How much less will the EMI be on a loan of Rs 15 lakh?
- Earlier the EMI on a car loan of Rs 15 lakh was Rs 30,956. After the implementation of the new 8.50% rate, this EMI has reduced to Rs 30,775. In this way the customer gets a saving of Rs 181 every month.
How much relief will be available on car loan of Rs 20 lakh?
- According to the earlier 8.75% interest rate on a loan of Rs 20 lakh, the EMI was Rs 41,274. Now this EMI has reduced to Rs 41,033. That means there will be a direct saving of Rs 241 every month, which becomes a good amount in a year.
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