As of December 2024, several banks in India offer competitive interest rates on car loans. Among them, HDFC Bank is a prominent player, providing interest rates starting at 8.50% per annum, depending on the applicant's profile and loan specifics. Although not the lowest, HDFC Bank's reputation for excellent customer service, quick processing, and flexible loan terms makes it a preferred choice for many borrowers.

Other banks with competitive car loan interest rates include:

Bank of Baroda: Starting at 7.00% per annum, one of the lowest in the market.
Bank of India: Rates starting at 6.85%.
Punjab National Bank (PNB): From 6.65%, offering attractive terms.
State Bank of India (SBI): Rates starting at 7.20%, with schemes for specific groups.
Canara Bank: From 7.30%, known for transparent policies.

HDFC Bank stands out for its widespread network, innovative offerings like pre-approved loans for existing customers, and hassle-free digital processes. However, other banks like Bank of Baroda and Punjab National Bank offer lower interest rates, making them worth exploring.

It's crucial to compare interest rates, processing fees, prepayment charges, and other factors. Always review the latest rates and terms directly with banks to make an informed decision tailored to your financial needs.