HDFC Car Loan Review: Interest Rates @ 7.50%

HDFC Car Loan Review: Interest Rates @ 7.50%

HDFC bank offers 100% on-road financing at competitive interest rates.

Good for

  • 100% on road financing
  • Low EMIs

Bad for

  • Low prepayment and late fees
  • Low income earners

Editor's Rating

4.5/5.0

HDFC Bank car loans have exceptional features including 100% on-road financing, 7-year loan tenures, and zero foreclosure payments on new car loans after 24 months. HDFC car loan interest rates are some of the lowest in India, as well, with new car loan rates starting from 7.50% and used car loan interest rates starting from 9.40%. Eligible borrowers will find great deals at HDFC Bank, but ValueChampion recommends you consider the bank's costly fees and extra charges before applying.

Summary of HDFC Bank Car Loan
New car loan interest rates from 7.50%
Used car loan interest rates from 9.40%
100% on-road financing
Car loan tenure up to 7 years

Table of Contents

What Makes HDFC Car Loans Stand Out to Borrowers

HDFC car loans are amongst the best car loans in India due to their 100% on-road financing, as well as long loan tenures up to 7 years. The auto loan lender charges relatively low interest rates, as well, starting from 7.50% for new cars and 9.40% for used vehicles. Below, you can find the various HDFC Bank car loans available to you, as well as the features that make them stand out amongst the rest.

HDFC Bank Car LoansFeatures
HDFC New Car Loan
  • Up to 100% on-road financing
  • Select schemes include health insurance, personal accident cover, household cover, and 3 month moratorium available
HDFC ZipDrive Instant New Car Loan
  • For existing HDFC customers
  • Instant loan approval and fast disbural times
HDFC Used Car Loan
  • For cars up to 10 years of age by loan maturity
  • Financing up to Rs. 2.5 crore

HDFC Car Loan Interest Rates

HDFC Bank interest rates
HDFC Bank interest rates

HDFC car loan interest rates rank in the top 5 lowest car loan rates of the lenders that ValueChampion has analysed. Whether you are in need of a new car loan or second hand car loan, we recommend HDFC as a first stop for borrowers seeking 100% on-road financing with low interest rates.

Below, you can find a table of HDFC car loan interest rates per loan scheme, as well as the estimated Annual Percentage Rate (APR) which includes other costs like processing fees.

HDFC Bank Car Loan Interest Rates and APR

HDFC Bank Car LoanInterest RatesAverageAPR
HDFC New Car Loan7.50% - 13.50%8.35%7.50% - 15.56%
HDFC ZipDrive Instant New Car Loan7.50% - 13.50%8.35%7.50% - 15.56%
HDFC Used Car Loan9.40% - 16.35%8.35%9.42% - 22.68%

For new car loan interest rates, HDFC Bank charges between 7.50% and 13.50%, with an average lending rate of 8.35%. While the lender does not have the absolute lowest rates in India, they still charge below our calculated market average of 9.06%, making the HDFC car loan an optimal choice for minimising your total cost of borrowing.

HDFC pre-owned car loan interest rates, on the other hand, are charged between 9.40% and 16.35%, with an average lending rate of 13.33%. The lender provides one of the cheapest used car loans in India, ranking as the #4 lowest rate car loan of the banks that our financial team reviewed.

HDFC Car Loan Eligibility Criteria

Consider this if you seek 100% on road financing

Interest Rates 7.50% - 13.50%
Processing Fee 1.00%, minimum of Rs. 5000, maximum Rs. 10000
Margin 100%
Loan Tenure 12 months to 84 months

HDFC stands out for its 100% on-road financing, for both new cars (up to Rs. 3.5 crores) and used cars (up to Rs. 2.5 crores). However, if you are seeking to apply for a used vehicle without income documents, you can avail up to 85% financing from HDFC Bank. It's important to note that HDFC Bank finances used cars no older than 10 years by loan maturity.

Along with generous margins, HDFC Bank also offers car loan tenures up to 7 years, which allows for smaller EMIs over a longer period of time. The minimum car loan tenure you can avail is 12 months, which is standard in the auto loan market.

HDFC Car Loan Eligibility for Applicants

HDFC Bank Car LoanIncome RequirementEmployment Stability
HDFC New Car Loan
  • Salaried: Rs. 3 lakhs per annum, including income of spouse and co-applicant
  • Self-employed: Rs. 3 lakhs per annum
  • Salaried: 2 years total, 1 year minimum with current employer
  • Self-employed: 2 years

HDFC Used Car Loan

  • Salaried: Rs. 2.5 lakhs per annum, including income of spouse and co-applicant
  • Self-employed: Rs. 2.5 lakhs per annum
  • Salaried: 2 years total, 1 year minimum with current employer
  • Self-employed: 3 years

While HDFC Bank's income and age requirements are not extraordinary, the lender does not have the most lenient eligibility criteria. Borrowers outside of HDFC's age requirement range of 21 - 60 for salaried borrowers, and 21 - 65 for self-employed borrowers, can look at Union Bank of India for their car financing needs. Similarly, low income earners can find a lower income requirement at Kotak Mahindra Prime Limited.

As a final mention, you do not need to be an HDFC salary account holder to qualify for an HDFC car loan, but it's important to note that existing HDFC customers will avail preferential pricing and faster car loan processing.

HDFC Car Loan Processing Fee and Other Charges

FeeAmount
Processing Fee1.00%, minimum Rs. 5000, maximum Rs. 10,000
Late Payment Fee2.00% of EMI
Prepayment Penalty3.00% - 5.00%, depending on the stage of loan tenure
Foreclosure Charges3.00% - 6.00%, depending on the stage of loan tenure

A potential drawback of the HDFC car loan is its menu of costly processing fees and extra costs. HDFC's processing fee of 1.00% is comparably higher to other lenders that charge up to 0.50% of the total loan amount, for instance.

Similarly, HDFC car loan foreclosure charges and prepayment penalty fees can drive up your total cost significantly. Depending on your progress in the car loan tenure, you can be charged up to 5.00% of the principal outstanding if you choose to pay down your car loan in advance, or up to 6.00% if you seek to foreclose. New car loans are excluded from this rule, with zero foreclosure fees after 24 months of repayment.

While costly fees like this are not a deal breaker compared to HDFC's other exceptional features, ValueChampion recommends that you speak with an HDFC customer representative to calculate your total cost of borrowing.

HDFC Car Loan Payment and EMI Calculator

HDFC Bank offers multiple car loan repayment plans to help borrowers afford their dream vehicle. Below, you can review the different car loan EMI options available for new and used car loans.

EMI Payment SchemeFeatures
Safe N Easy (for salaried professionals)EMIs up to 75% lower for the first 6 months of tenure
Safe N Easy (for all customers)EMIs up to 70% lower for the first 3 months of tenure
11119999EMIs start low and gradually increase, with a final 10% payment at end of loan tenure
DivaloanInterest rates starting at 8.20% for women only
Step Up Scheme
  • Best for borrowers with growing income
  • EMIs start low and increase each year
FlexidriveEMIs up to 50% lower for any 3 consecutive months in a year over the loan tenure
Premium Segment
  • For loans above Rs. 20 lakhs
  • Multiple payment plans under this scheme.

You can use the HDFC car loan EMI calculator to estimate your monthly payments and total cost of borrowing. Click here to view the HDFC car loan calculator.

HDFC Car Loan: Apply

We recommend that you use HDFC's online platform to find the best car loan deals before applying. The HDFC New Car Bazaar will help you find a new vehicle based on your desired EMIs, car loan interest rate, and loan tenure.

HDFC Car Loan Customer Care

If you have any queries about the HDFC car loan application process or would like to check your HDFC car loan status, contact HDFC customer care through any of the methods below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.