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 Loans||Features|
|HDFC New Car Loan|
|HDFC ZipDrive Instant New Car Loan|
|HDFC Used Car Loan|
HDFC Car Loan 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 Loan||Interest Rates||Average||APR|
|HDFC New Car Loan||7.50% - 13.50%||8.35%||7.50% - 15.56%|
|HDFC ZipDrive Instant New Car Loan||7.50% - 13.50%||8.35%||7.50% - 15.56%|
|HDFC Used Car Loan||9.40% - 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
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 Loan||Income Requirement||Employment Stability|
|HDFC New Car Loan|
HDFC Used Car Loan
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
|Processing Fee||1.00%, minimum Rs. 5000, maximum Rs. 10,000|
|Late Payment Fee||2.00% of EMI|
|Prepayment Penalty||3.00% - 5.00%, depending on the stage of loan tenure|
|Foreclosure Charges||3.00% - 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 Scheme||Features|
|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|
|11119999||EMIs start low and gradually increase, with a final 10% payment at end of loan tenure|
|Divaloan||Interest rates starting at 8.20% for women only|
|Step Up Scheme|
|Flexidrive||EMIs up to 50% lower for any 3 consecutive months in a year over the loan tenure|
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.