Sundaram Finance Car Loan Interest Rate: Rates, Fees & Calculation Guide

Key Takeaways
 

• Sundaram Finance car loan interest rate can be customized based on the type of car finance you require. The Sundaram Finance car loan interest rate ranges between 8% and 24% per annum. 
   
• Funding for Sundaram Finance car loans can be acquired for cars that are up to 7 years old. Commercial and car EMIs can be estimated using the Sundaram Finance commercial vehicle loan EMI calculator tool on their site.
   
• Pre-closure of loans likely incurs a 5% prepayment charge on outstanding principal.
  
  Bonus Tip: Sundaram Finance received the “Best Customer Service NBFC” nod in industry surveys. This helps boost trust for car buyers.
  
  Kiruthika, a marketing executive from Chennai, compared the Sundaram Finance car loan interest rate for new cars with other NBFCs. She discovered several competitive options. She found that the Sundaram Finance used car loan interest rate starts from about 8% per annum for new or pre-owned cars.
  
  The interest rate for a car loan from Sundaram Finance is like adding toppings to your pizza. It is what you pay extra for a car loan convenience. Lower Sundaram Finance car loan interest rate means better savings. A higher Sundaram Finance car loan interest rate means a larger amount to be paid over time, just like adding extra cheese!

Kiruthika said, “I decided to borrow ₹10,00,000 for my new ride. The Sundaram Finance car loan interest rate 2025 averaged around 9% per annum. I figured that my EMIs would be much lighter than the usual steep 12%-plus interest rate for used car loans.”

 

Types of Car Loans Offered by Sundaram Finance 
 

Here’s the quick snapshot Kiruthika created along with the different Sundaram Finance car loan interest rates while sipping filter kaapi:
 

Sundaram Finance Car Loan Processing Fees and Charges 

Sundaram Finance may levy processing fees, documentation charges, and handling costs as per the sanction terms. The processing fee ranges between 1% and 5%. Prepayment or foreclosure (also known as “prepayment charge”) is up to 5% of the principal outstanding before settlement. Specific charges vary according to the loan agreement and the type of vehicle. It is advisable to always confirm with your branch.

How to Apply for a Sundaram Finance Car Loan?

Kiruthika decided to use her Chennai-to-Ooty weekend savings wisely. She followed these steps to apply for the Sundaram Finance Car Loan:
 

• Visit the official website or the nearest Sundaram Finance branch.
   
• Choose Car Finance and click to start the application.
   
• Fill out the personal details, employment proofs (her marketing job salary slips helped!), address proof, and car quotation.
   
• Attach KYC documents: Aadhaar, PAN, bank statements, salary slips, and vehicle dealer quote.
   
• Submit the form and wait for verification.
   
• Once approved, complete the agreement and get the loan amount disbursed.
   
• Use the Sundaram Finance commercial vehicle loan EMI calculator online to estimate your EMIs before applying.
   

Kiruthika checked her EMI figures and the Sundaram Finance car loan interest rate in Chennai traffic queues. She joked it felt like playing “Kaun Banega Crorepati” on the roads!

Conclusion

Kiruthika finally bought her new car with a smile wider than the ECR sea view. She joked, “Car loan with zero drama, Sundaram Finance ka dhoom dhadaka!” Jokes aside, understanding the Sundaram Finance car loan interest rate and charges helped her make the best decision. 

Used cars may attract higher rates; new loans are more budget-friendly. Always check EMIs with the Sundaram Finance commercial vehicle loan EMI calculator before signing. And remember, closing early might cost a bit 
due to Sundaram Finance car loan foreclosure charges. So, plan smart and grab the best Sundaram Finance car loan interest rate deal!
 

FAQs Related to Sundaram Finance Car Loan Interest Rates

What is the minimum interest rate for Sundaram car loans? 
Many NBFCs, including Sundaram, offer new car loans starting around 8%-9% for strong credit scores.
 

Why are used car loan rates higher than new car loans?
Used car loans carry higher risk due to depreciation and resale uncertainty, often leading to higher Sundaram Finance used car loan interest rates than new car rates.
 

How do I estimate EMIs for different Sundaram loans?
Use the official Sundaram Finance commercial vehicle loan EMI calculator for any vehicle type by inputting the loan amount and tenure.
 

Are foreclosure charges for the Sundaram Finance car loan expensive?
You may pay up to 1%-5% of the outstanding principal as a prepayment charge when you close early.
 

What are Sundaram Finance car loan foreclosure charges? 
Foreclosure charges (prepayment fee) are typically around 1%-5% of the principal outstanding under their Fair Practices Code.
 

Can Sundaram Finance legally use a lower discount rate than the original interest rate when calculating the foreclosure payout on my company-arranged car lease?
If your lease agreement doesn’t clearly state how the foreclosure amount is calculated or what discount rate applies, the financier’s choice of discount rate can be challenged as unfair. Ambiguous terms generally favor the borrower in disputes under consumer law, and you may consider approaching a consumer forum or financial ombudsman for clarity or relief. 
 

What can I do if Sundaram Finance hasn’t updated my CIBIL report to show my loan as paid even after I cleared all dues?
If your loan is fully paid but still showing as pending on CIBIL, get a formal No Dues Certificate from the lender, then raise a dispute with CIBIL with all payment proofs. CIBIL updates records only based on the lender’s reports, and you can press the lender to correct it or escalate to the RBI Ombudsman if they don’t cooperate.
 

Can a home loan provider like Sundaram Finance legally refuse to lower my EMI even after reducing the interest rate, offering only a shorter loan tenure instead?
Yes, for floating-rate home loans, lenders can choose whether to pass interest rate reductions by lowering the EMI amount or by shortening the loan tenure, as long as they follow the terms of your loan agreement and applicable RBI rules; it’s common practice that many lenders reduce tenure rather than EMIs to maintain cash-flow, and borrowers can still request an EMI change or negotiate options but the lender isn’t legally bound to lower the EMI itself.
 

What are the benefits of taking a car loan from an NBFC versus a bank?
NBFCs often offer faster approvals and disbursals, more flexible eligibility criteria (helpful if your credit score or income documents aren’t perfect), less documentation and a simpler process, and tailored loan options that suit diverse borrower needs, making them a great choice for quick, convenient car financing.