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Federal Bank vs Mahindra Finance vs SBI: Vehicle Loan Comparison

By KhatuLoans Editorial Team, edited by Hemant Kumar · Figures checked · Information only, not a loan provider

On the car loan, Federal Bank starts lowest at 7.90%, compared with 8% at Mahindra Finance and 8.40% at SBI. Federal Bank allows the longer maximum tenure (84 months). A starting rate is the best case, not a typical offer, so confirm the annual percentage rate (APR) and total repayable amount in each loan provider's Key Fact Statement. Figures are as published on the loan providers' own websites and checked 4 October 2026.

Federal Bank vs Mahindra Finance vs SBI at a glance

DetailFederal BankMahindra FinanceSBI
Loan provider typePrivate bankNBFCPublic sector bank
Legal nameFederal BankMahindra & Mahindra Financial Services Ltd (Mahindra Finance)State Bank of India
Vehicle loans with a published rateCar loan, Two-wheeler loan, Used car loan, Commercial vehicle loanCar loan, Used car loan, Three-wheeler loan, Tractor loan, Commercial vehicle loanCar loan, Two-wheeler loan, Used car loan, Electric car loan
Car loan: published rate7.90% - 9.00%8% - 25% p.a.policy range, new assets8.40% - 9.35%
Car loan: maximum tenure84 months5 years7 years
Used car loan: published rate10.15% - 14.00%8% - 25% p.a.policy range, pre-owned assets10.45% - 15.60%credit-score based
Used car loan: maximum tenure60 months5 yearsUp to 5 years (10 years minus vehicle age)
Official websitefederal.bank.inmahindrafinance.comsbi.bank.in

Federal Bank vs Mahindra Finance vs SBI car loan: rate, fees and tenure

Starting car loan rates as published: Federal Bank from 7.90%, Mahindra Finance from 8% and SBI from 8.40%. Federal Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Federal Bank lists the longer maximum tenure (84 months).

DetailFederal BankMahindra FinanceSBI
ProductFederal Personal Car Loan (new)Car Loan (also separate Utility Vehicle Loan)SBI New Car Loan Scheme
Published rate7.90% - 9.00%8% - 25% p.a.policy range, new assets8.40% - 9.35%
Rate basisFixed (product page also lists 10.15% floating, repo-linked)Policy allows fixed, floating or hybrid; car loan FAQ quotes on flat-rate basisMCLR-linked (per SBI auto loan rate page)
Maximum tenure84 months5 years7 years
Maximum fundingUp to 95% of on-road priceUp to 100% of ex-showroom valueUp to 100% of on-road price
Processing fee1% of loan (min ₹1,000, max ₹50,000)Up to 2% of sanction amount (stated for non-Mahindra cars); not stated for Mahindra carsRs 1,000-3,000 + GST (salaried) / Rs 1,500-4,000 + GST (non-salaried), slab by loan amount
Pre-closure / prepaymentNil6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months)No prepayment charges; no foreclosure charges after 2 years (as published)
Other terms published
  • Free personal accident cover up to ₹10 lakh
  • No-income-document scheme
  • Finances most passenger and multi-utility vehicles across brands
  • No collateral security required
  • No advance EMI
  • Interest on daily reducing balance
  • Flexi-pay option: reduced EMI in initial months
  • Variants: Loyalty Car Loan (8.35%-9.30%), Assured Car Loan, NRI Car Loan with nil processing fee
Official sourcefederal.bank.in
federal.bank.in
federal.bank.in
mahindrafinance.com
media.mahindrafinance.com
mahindrafinance.com
sbi.bank.in
sbi.bank.in
sbi.bank.in

EMI illustration: ₹10 lakh over 60 months

Loan providerRate usedMonthly EMITotal interestTotal repayable
Federal Bank7.90%₹20,229₹2,13,714₹12,13,714
Mahindra Finance8%₹20,276₹2,16,584₹12,16,584
SBI8.40%₹20,468₹2,28,102₹12,28,102

Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.

Monthly EMI at other loan amounts (60 months)

Loan amountFederal Bank (7.90%)Mahindra Finance (8%)SBI (8.40%)
₹5 lakh₹10,114₹10,138₹10,234
₹10 lakh₹20,229₹20,276₹20,468
₹15 lakh₹30,343₹30,415₹30,703
₹20 lakh₹40,457₹40,553₹40,937

Read the full guide: Car loan · EMI calculator

Federal Bank vs Mahindra Finance vs SBI two-wheeler loan: rate, fees and tenure

Starting two-wheeler loan rates as published: Federal Bank from 12.60% and SBI from 11.70%. SBI is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Mahindra Finance does not publish a two-wheeler loan rate on its website, so none is shown.

DetailFederal BankMahindra FinanceSBI
ProductFederal Personal Car Loan (new two-wheeler)Not publishedSBI Two Wheeler Loan Scheme
Published rate12.60% - 16.00%Not published11.70% - 15.70%
Rate basisFixedNot publishedMCLR-linked (1-year MCLR)
Maximum tenure60 monthsNot publishedUp to 60 months
Maximum fundingNot publishedNot published85% of on-road price; max Rs 3 lakh
Processing fee2.50% (min ₹2,500)Not published3% of loan + GST (50% waiver for salary package customers)
Pre-closure / prepaymentNilNot publishedNot published
Other terms publishedNot publishedNot published
  • 0.50% rate concession for electric two-wheelers
  • Separate Super Bike Loan: 12.55% - 14.55%, fee 2% (max Rs 10,000 + GST)
Official sourcefederal.bank.in
federal.bank.in
federal.bank.in
Not publishedsbi.bank.in
sbi.bank.in
sbi.bank.in

EMI illustration: ₹1 lakh over 36 months

Loan providerRate usedMonthly EMITotal interestTotal repayable
Federal Bank12.60%₹3,350₹20,606₹1,20,606
SBI11.70%₹3,307₹19,056₹1,19,056

Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.

Monthly EMI at other loan amounts (36 months)

Loan amountFederal Bank (12.60%)SBI (11.70%)
₹0.5 lakh₹1,675₹1,654
₹1 lakh₹3,350₹3,307
₹1.5 lakh₹5,025₹4,961

Read the full guide: Two-wheeler loan · EMI calculator

Federal Bank vs Mahindra Finance vs SBI used car loan: rate, fees and tenure

Starting used car loan rates as published: Federal Bank from 10.15%, Mahindra Finance from 8% and SBI from 10.45%. Mahindra Finance is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered.

DetailFederal BankMahindra FinanceSBI
ProductLoan for Pre-Owned CarsUsed Car LoanSBI Certified Pre-Owned Car Loan
Published rate10.15% - 14.00%8% - 25% p.a.policy range, pre-owned assets10.45% - 15.60%credit-score based
Rate basisFixed (product page also lists 15.05% floating)Not publishedMCLR-linked (1-year MCLR)
Maximum tenure60 months5 yearsUp to 5 years (10 years minus vehicle age)
Maximum fundingUp to 90% of vehicle valueUp to 90% of car valueUp to 85% of valuation; loan Rs 2 lakh - Rs 150 lakh
Processing fee1% of loan (min ₹5,000, max ₹2,50,000)Up to 2% of sanction amount1.50% of loan + GST (min Rs 3,000, max Rs 10,000 + GST)
Pre-closure / prepaymentNil6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months)Not published
Other terms publishedNot published
  • Car must be under 10 years old
  • Car age plus loan term capped at 8-10 years
  • Certified pre-owned cars from authorised dealers
  • Loan to be repaid before age 70
Official sourcefederal.bank.in
federal.bank.in
federal.bank.in
mahindrafinance.com
media.mahindrafinance.com
mahindrafinance.com
sbi.bank.in
sbi.bank.in
sbi.bank.in

EMI illustration: ₹5 lakh over 48 months

Loan providerRate usedMonthly EMITotal interestTotal repayable
Federal Bank10.15%₹12,717₹1,10,432₹6,10,432
Mahindra Finance8%₹12,206₹85,910₹5,85,910
SBI10.45%₹12,790₹1,13,902₹6,13,902

Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.

Monthly EMI at other loan amounts (48 months)

Loan amountFederal Bank (10.15%)Mahindra Finance (8%)SBI (10.45%)
₹3 lakh₹7,630₹7,324₹7,674
₹5 lakh₹12,717₹12,206₹12,790
₹8 lakh₹20,348₹19,530₹20,463

Read the full guide: Used car loan · EMI calculator

Federal Bank vs Mahindra Finance vs SBI electric car loan: rate, fees and tenure

Only SBI publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Federal Bank and Mahindra Finance do not publish an electric car loan rate on their website, so none is shown.

DetailFederal BankMahindra FinanceSBI
ProductNot publishedNot publishedSBI Green Car Loan
Published rateNot publishedNot published8.30% - 9.35%
Rate basisNot publishedNot publishedMCLR-linked (per SBI auto loan rate page)
Maximum tenureNot publishedNot publishedUp to 8 years
Maximum fundingNot publishedNot publishedUp to 100% of on-road price
Processing feeNot publishedNot publishedNil
Other terms publishedNot publishedNot published
  • Electric cars only
  • Concession vs regular car loan rate (published as 25 bps)
Official sourceNot publishedNot publishedsbi.bank.in
sbi.bank.in
sbi.bank.in

Read the full guide: Electric car loan

Federal Bank vs Mahindra Finance vs SBI three-wheeler loan: rate, fees and tenure

Only Mahindra Finance publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Federal Bank and SBI do not publish a three-wheeler loan rate on their website, so none is shown.

DetailFederal BankMahindra FinanceSBI
ProductNot publishedThree-Wheeler LoanNot published
Published rateNot published8% - 25% p.a.policy range, 3-wheelersNot published
Maximum tenureNot published4 yearsNot published
Maximum fundingNot publishedBased on vehicle and customer profileNot published
Pre-closure / prepaymentNot published6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months)Not published
Other terms publishedNot published
  • Auto-rickshaws, tempos and e-rickshaws
  • No collateral security required
Not published
Official sourceNot publishedmahindrafinance.com
media.mahindrafinance.com
mahindrafinance.com
Not published

Read the full guide: Three-wheeler loan

Federal Bank vs Mahindra Finance vs SBI tractor loan: rate, fees and tenure

Only Mahindra Finance publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Federal Bank and SBI do not publish a tractor loan rate on their website, so none is shown.

DetailFederal BankMahindra FinanceSBI
ProductNot publishedTractor LoanSBI New Tractor Loan Scheme
Published rateNot published8% - 25% p.a.policy range, new/pre-owned assets1-year MCLR + 3.60% to + 4.35%by collateral
Rate basisNot publishedNot publishedMCLR-linked (1-year MCLR)
Maximum tenureNot published5 years (6-60 months)Up to 5 years (half-yearly instalments)
Maximum fundingNot publishedNo fixed minimum or maximum amount75% of tractor + accessories cost (25% margin); loan Rs 2 lakh - Rs 25 lakh
Processing feeNot publishedUp to 2% of sanction amount (farm equipment)1.50% of loan amount
Pre-closure / prepaymentNot published6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months)Not published
Other terms publishedNot published
  • No land mortgage required
  • Approval within 2 working days
  • Mahindra and Swaraj tractors
  • Collateral optional
  • Minimum 2 acres agricultural land
  • Loan paid directly to dealer
Official sourceNot publishedmahindrafinance.com
media.mahindrafinance.com
mahindrafinance.com
sbi.bank.in

Read the full guide: Tractor loan

Federal Bank vs Mahindra Finance vs SBI commercial vehicle loan: rate, fees and tenure

Starting commercial vehicle loan rates as published: Federal Bank from 7.50% and Mahindra Finance from 8%. Federal Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. SBI lists the longer maximum tenure (84 months (48 months for electric cvs); up to 6 months moratorium). SBI does not publish a commercial vehicle loan rate on its website, so none is shown.

DetailFederal BankMahindra FinanceSBI
ProductCommercial Vehicles & Construction Equipment FinanceCommercial Vehicle LoanSBI Commercial Vehicle Loan
Published rate7.50% - 15%8% - 25% p.a.policy range, new/pre-owned assetsRepo Rate + 2.65%
Rate basisNot publishedMonthly reducing balance (per product page)EBR (repo) linked
Maximum tenureNot published60 months new; 36 months used84 months (48 months for electric CVs); up to 6 months moratorium
Maximum fundingNot publishedNot published85% of on-road price (15% margin); loan Rs 10 lakh - Rs 50 lakh
Processing fee0.25% + GST (product page); charges schedule lists 2%Up to 2% of sanction amount0.50% of loan + GST
Pre-closure / prepaymentUp to 3%6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months)Not published
Other terms published
  • New and used CV and CE
  • New and used CVs and construction equipment
  • Used CVs up to 15 years old; used CE up to 10 years old
  • No collateral security required
  • Covers new CVs, EV, hybrid, CNG, ambulances, caravans
  • CGTMSE cover
  • Needs 2 years industry experience
Official sourcefederal.bank.in
federal.bank.in
mahindrafinance.com
media.mahindrafinance.com
mahindrafinance.com
sbi.bank.in

EMI illustration: ₹15 lakh over 48 months

Loan providerRate usedMonthly EMITotal interestTotal repayable
Federal Bank7.50%₹36,268₹2,40,881₹17,40,881
Mahindra Finance8%₹36,619₹2,57,730₹17,57,730

Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.

Monthly EMI at other loan amounts (48 months)

Loan amountFederal Bank (7.50%)Mahindra Finance (8%)
₹10 lakh₹24,179₹24,413
₹15 lakh₹36,268₹36,619
₹25 lakh₹60,447₹61,032

Read the full guide: Commercial vehicle loan

Which is better: Federal Bank, Mahindra Finance or SBI?

No loan provider is best for everyone. This is how the published figures split, product by product.

  • Car loan, lower starting rate: Federal Bank (7.90%) versus 8% at Mahindra Finance and 8.40% at SBI.
  • Used car loan, lower starting rate: Mahindra Finance (8%) versus 10.15% at Federal Bank and 10.45% at SBI.
  • Car loan, longer maximum tenure: Federal Bank (84 months). A longer tenure lowers the EMI but raises total interest.
  • Commercial vehicle loan, longer maximum tenure: SBI (84 months (48 months for electric cvs); up to 6 months moratorium). A longer tenure lowers the EMI but raises total interest.

Pick on total cost, not the headline rate: ask each loan provider for the Key Fact Statement and compare the APR and total repayable amount. A low rate with a high processing fee can cost more than a slightly higher rate with no fee.

Bank type and how each loan provider sets its rate

Federal Bank is a private bank, Mahindra Finance is a nbfc and SBI is a public sector bank.

What the loan providers' own pages say about how their rates are set:

  • Federal Bank car loan: Fixed (product page also lists 10.15% floating, repo-linked).
  • Federal Bank two-wheeler loan: Fixed.
  • Federal Bank used car loan: Fixed (product page also lists 15.05% floating).
  • Mahindra Finance car loan: Policy allows fixed, floating or hybrid; car loan FAQ quotes on flat-rate basis.
  • Mahindra Finance commercial vehicle loan: Monthly reducing balance (per product page).
  • SBI car loan: MCLR-linked (per SBI auto loan rate page).
  • SBI two-wheeler loan: MCLR-linked (1-year MCLR).
  • SBI used car loan: MCLR-linked (1-year MCLR).

Banks and non-banking finance companies (NBFCs) publish rates in different ways: some give a range, some only a starting rate and some only a maximum. That is why this page compares like with like and marks every gap as not published instead of guessing.

About Federal Bank, Mahindra Finance and SBI

Federal Bank

Private bank

Kerala-based private bank whose Personal Car Loan covers new cars, used cars and new two-wheelers on fixed rates, with no prepayment charges and free personal accident cover.

Lowest published starting rate: 7.50% (Commercial vehicle loan)

Mahindra Finance

NBFC · Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)

Mahindra Group vehicle financier focused on rural and semi-urban India; finances Mahindra UVs/tractors and other brands

Lowest published starting rate: 8% (Car loan)

SBI

Public sector bank · State Bank of India

India's largest bank, offering MCLR-linked car, green (EV) car, certified pre-owned car and two-wheeler loans, plus SME commercial vehicle and agri tractor loans.

Lowest published starting rate: 8.30% (Electric car loan)

What to check before you choose a vehicle loan

  1. Ask for the Key Fact Statement (KFS). RBI requires loan providers to give you one before you sign, showing the interest rate, all fees, the APR and the total amount you will repay.
  2. Compare APR, not the headline rate. Processing fee, documentation charges and insurance change the real cost.
  3. Ask about pre-closure charges. Fixed-rate vehicle loans often carry charges for paying early; floating-rate loans to individuals cannot.
  4. Check what is bundled. Insurance, extended warranty or accessories added to the loan raise the amount you pay interest on. You are free to buy insurance elsewhere.
  5. Confirm the hypothecation. The loan provider's name is noted on the registration certificate. After the last EMI, collect the NOC and have it removed at the RTO.

Terms used on this page

Plain meanings of the terms this comparison uses.

Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.

APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.

Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.

Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.

Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.

Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.

Sources, method and last check

Every figure above comes from the loan provider's own website. We checked them on 4 October 2026 and list the pages used.

Method: we list only figures we could find on the loan provider's official pages. A blank means the loan provider does not publish that figure, and we never estimate one. Rankings use the published starting rate and published maximum tenure only. Read our editorial policy, how we make money and tell us about an error.

More loan provider comparisons

Federal Bank compared with other loan providers

Mahindra Finance compared with other loan providers

SBI compared with other loan providers

Head-to-head pages for these three loan providers

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Frequently asked questions

Which is better for a car loan: Federal Bank, Mahindra Finance or SBI?

On the car loan, Federal Bank starts lowest at 7.90%, compared with 8% at Mahindra Finance and 8.40% at SBI. Federal Bank allows the longer maximum tenure (84 months). A starting rate is the best case, not a typical offer, so confirm the annual percentage rate (APR) and total repayable amount in each loan provider's Key Fact Statement. Figures are as published on the loan providers' own websites and checked 4 October 2026. The better choice depends on your profile, the loan amount and the fees in your offer letter.

Which has the lower car loan interest rate: Federal Bank, Mahindra Finance or SBI?

Federal Bank has the lower published starting rate. Published starting rates: Federal Bank 7.90%, Mahindra Finance 8% and SBI 8.40% (checked 4 October 2026). Your actual rate depends on your credit profile and the loan provider's approval.

What is the processing fee on a car loan at Federal Bank, Mahindra Finance and SBI?

Federal Bank: 1% of loan (min ₹1,000, max ₹50,000). Mahindra Finance: Up to 2% of sanction amount (stated for non-Mahindra cars); not stated for Mahindra cars. SBI: Rs 1,000-3,000 + GST (salaried) / Rs 1,500-4,000 + GST (non-salaried), slab by loan amount. Fees can change and GST is usually extra, so check the Key Fact Statement.

What is the maximum car loan tenure at Federal Bank, Mahindra Finance and SBI?

Federal Bank: 84 months. Mahindra Finance: 5 years. SBI: 7 years.

What is the EMI on a ₹10 lakh car loan at Federal Bank, Mahindra Finance and SBI?

Over 60 months at each loan provider's lowest published rate: Federal Bank about ₹20,229 a month at 7.90%; Mahindra Finance about ₹20,276 a month at 8%; SBI about ₹20,468 a month at 8.40%. This is an illustration that leaves out fees, GST and insurance. Your offered rate may be higher.

How much of the vehicle price can I borrow on a car loan from Federal Bank, Mahindra Finance and SBI?

Federal Bank: Up to 95% of on-road price. Mahindra Finance: Up to 100% of ex-showroom value. SBI: Up to 100% of on-road price. Funding is usually profile-based, so the loan provider decides the final amount.

What other terms do Federal Bank, Mahindra Finance and SBI publish for a car loan?

Federal Bank: Free personal accident cover up to ₹10 lakh; No-income-document scheme. Mahindra Finance: Finances most passenger and multi-utility vehicles across brands; No collateral security required. SBI: No advance EMI; Interest on daily reducing balance; Flexi-pay option: reduced EMI in initial months. Check each loan provider's page for eligibility and documents before you apply.

Can I prepay or foreclose a car loan early at Federal Bank, Mahindra Finance and SBI?

Federal Bank: Nil. Mahindra Finance: 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months). SBI: No prepayment charges; no foreclosure charges after 2 years (as published). Floating-rate loans to individuals cannot carry pre-closure charges; fixed-rate loans often do.

Which vehicle loans do Federal Bank, Mahindra Finance and SBI publish rates for?

Federal Bank: car loan, two-wheeler loan, used car loan, commercial vehicle loan. Mahindra Finance: car loan, used car loan, three-wheeler loan, tractor loan, commercial vehicle loan. SBI: car loan, two-wheeler loan, used car loan, electric car loan. Based on each loan provider's own website, checked 4 October 2026.

Are the rates on this page the rate I will get?

No. They are the rates the loan providers publish, usually a range or a starting rate. Your approved rate depends on your credit score, income, loan amount, tenure and vehicle. Always read the Key Fact Statement before you sign.

Does KhatuLoans lend money or charge for this comparison?

KhatuLoans is not a loan provider. The loan provider decides approval, rate and terms. Our comparisons are free to read, and we are not paid by the loan providers named here to rank them. See how we make money on our advertiser disclosure page.

KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and prices change; always confirm with the loan provider and dealer. Read our editorial policy and how we make money.