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HDFC Car Loan Interest Rate

HDFC Car Loan Interest Rate May 2020

Last Updated 15th May 2020

HDFC Bank New Car Loan interest rate starts from 9.25% and HDFC Bank Used Car Loan interest rates starts from 13.00%. These are Fixed rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure.

Features New Car Loan Used Car Loan
Processing Fee 0.40% Max Rs. 10,000 2.00% Min Rs. 5,000
Loan Tenure Upto 7 years Upto 5 years
Lowest EMI ₹ 1,622 per lakh ₹ 2,088 per lakh
Loan Amount Upto 100% of ex-showroom price Upto 80% of market value
Prepayment Charges 6% from 7-12 months, 5% from 13-24 months, 3% after 24 months Not allowed for 6 months; 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months

Highest eligibility of up to 100% car finance on a wide range of models

HDFC Car Loan

HDFC Bank gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from HDFC Bank are:

  • Highest eligibility of up to 100% car finance on a wide range of models
  • Instant New Car Loan under Zipdrive scheme for exisiting HDFC Bank customers
  • Maximum loan amount of up to Rs. 3 crore offered at competitive rates and no hidden charges.

HDFC Bank Car Loan Interest Rate

HDFC Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. HDFC Bank offers 100% of ex-showroom price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate HDFC varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. HDFC Bank has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low HDFC car loan rate.
  • Relationship with the Bank: HDFC Bank offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: HDFC Bank vehicle loans are of longer repayment tenure of 7 years.
  • Repayment Capacity: Before giving loan to the borrower, HDFC Bank checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.
Car Loan EMI Calculator
Car Loan Eligibility Calculator

HDFC Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Eligibility Criteria Eligibility Details
Age 21 years - 60 years
Minimum Annual Income Salaried: ₹ 1.80 Lakhs
Self Employed Professionals: ₹ 0.60 Lakhs
Self Employed Businessmen: ₹ 0.60 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 7 years
Loan to Value Ratio 100% of ex-showroom price

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. HDFC Bank offers auto loan to those who are atleast 21 years old at the time of loan approval and maximum 60 years at the time of loan maturity.

Income: HDFC Bank car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. HDFC Bank asks for net annual income of minimum Rs. 1.80 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from HDFC Bank. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best HDFC car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your HDFC Bank car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: HDFC auto loan amount depends upon your income. HDFC Bank gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your HDFC car loan status online and avial multiple benefits.

HDFC Car Loan Calculator

Car Loan EMI of HDFC Bank is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by HDFC Bank is Rs. 1,622 per lakh loan amount at lowest car loan interest rate of 9.25%. Car Loan EMI of HDFC Bank depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
HDFC EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.

Illustration

You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]

Where,

  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

HDFC Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. HDFC Bank allows prepayment of vehicle loan after paying 1 EMI with prepayment 6% from 7-12 months, 5% from 13-24 months, 3% after 24 months.

Processing Fee - HDFC Bank asks for a processing fee of 0.40% of loan amount. Max. ₹ 10,000 with applicable service tax.

HDFC Bank Car Loan Top up, Balance Transfer

  • HDFC Bank offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from HDFC Bank, subject to your eligibility

Documents required for HDFC Bank Car Loan

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car

Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

Frequently Asked Questions on HDFC Car Loan

What is car loan interest rate offered by HDFC Bank ?

As per current interest rates, HDFC car loan interest rates are in the range of 9.25%to 10.00%.

What is the lowest EMI per lakh on HDFC Bank car loan?

Lowest EMI per lakh is ₹ 1,226 for HDFC Bank for a loan availed at an interest rate of 9.25% and for a tenure of 7 years.

What is the maximum tenure of HDFC Bank car loan?

You can repay your HDFC Bank car loan in a flexible period of 7 years.

How much processing fee is charged by HDFC Bank on car loan?

HDFC Bank charges a processing fee of 0.40% of loan amount Max. ₹ 10,000 with applicable service tax.

How much car loan I can borrow from HDFC Bank?

HDFC Bank offers you 100% of ex-showroom price of car as loan.

Is age an eligibility factor to get car loan from HDFC Bank?

Yes, age is an important eligibility factor to get HDFC Bank car loan as you should be at least 21 years old at loan approval time and 60 years old at loan maturity time.

Are there any prepayment charges on HDFC car loan?

You can take car loan from HDFC Bank with prepayment 6% from 7-12 months, 5% from 13-24 months, 3% after 24 months.

Can I add my spouse's income while applying for car loan from HDFC Bank ?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.

Compare Car Loan Interest Rates of HDFC Bank with other banks


HDFC Bank Car Loan reviews 4.5/5  by 17 customers
MyLoanCare Service
4.5/5.0
Banks Service
4.5/5.0
Sellamuthu P, Namakkal
Reviewed on 08th Sep 2018
4 / 5 stars
HDFC Bank Availed in Aug 2018

Fast processing, easy documents collection, interest rate is reasonable, repayment options need to iRead more...

Nimish Goswami,
Reviewed on 19th Jul 2018
5 / 5 stars
HDFC Bank Availed in Jul 2018

Mr. Sudhir Kumar helped so much and has great knowledge about market.Read more...

Sinto Jacob, Trichur
Reviewed on 23rd May 2018
5 / 5 stars
HDFC Bank Availed in May 2018

applied car loan through myloancare. it was fast processing and got the amount without any delayRead more...

Mohamed Yunus, Pondicherry
Reviewed on 22nd Nov 2017
5 / 5 stars
HDFC Bank Availed in Nov 2017

Good and fast service, door step documents collection.Read more...

jagmal singh makwana, Banswara
Reviewed on 02nd Nov 2017
5 / 5 stars
HDFC Bank Availed in Oct-17

HDFC Bank finance is good. I like good service and fast processing.Read more...

Rahul Srivastava,
Reviewed on 26th Sep 2017
5 / 5 stars
HDFC Bank Availed in Sep-17

The process is very good. Fasten disbursement. Very responsive executive.Read more...

Sandip Patil, Thane
Reviewed on 25th Sep 2017
4 / 5 stars
HDFC Bank Availed in Sep-17

Provide Good Analysis in WebSite, it is very useful for getting loan related information.Read more...

CHETAN BHATI, Tirunelveli
Reviewed on 28th Apr 2017
4 / 5 stars
HDFC Bank Availed in Apr-17

my loan care Is a good service and very nice response I am request my friend Read more...

HDFC Bank Car Loan News - May 2020
  • 2019-09-23 : Grameen loan melas by HDFC bank
    In a bid to promote business and small scale enterprise in the rural areas, HDFC Bank has planned to organize 1000 loan melas, in more than 300 districts. The event will cover around 6000 villages in India. Borrowers can borrow a variety of loan products that include agricultural loans, commercial vehicle loans, and auto loans. In addition, people in rural areas can also avail of access to savings and current account during the event.
  • 2019-09-11 : Pre-approved car loans by HDFC Bank
    To strengthen its car financing business portfolio, HDFC Bank is all set to lend pre-approved car loans. The bank will be providing loans to the customers on the car’s website by checking on the customer’s banking and credit history. The interest rates on these loans will be given based on customer’s credit stability. The bank is planning to link its application programming interface with prominent automobile companies like Maruti Suzuki and Hyundai, among others.
  • 2019-08-23 : HDFC easy car loan scheme to buy Kia SELTOS
    In order to facilitate custom fit car loan policies, HDFC Bank came up with an exclusive offer with Kia seltos. As per the offer, customers can buy this newly launched car with an EMI starting from Rs. 1234 per lakh onwards.
  • 2019-05-02 : There have been an 18% rise in the used car loans in FY19-20 according to media sources
    As opined by the industry watchers, there has been a rise of 18% in the used car loans in FY19-20. The rise is due to the availability of attractive loan terms and easy instalments loan facility offered by the NBFCs as well as lenders like SBI, ICICI Bank and HDFC Bank. Currently, HDFC Bank charges 9.25% for new car loans, while for old car loans the interest is around 15.50%.
  • 2019-04-22 : HDFC Bank Q4 net profit up 23 per cent at Rs. 5,885 crores
    One of the leading car loans financiers, HDFC Bank has posted a 23 per cent increase in its net profit to Rs. 5,885 crore for the fourth quarter of FY18-19 as compared to Rs. 4,799 crore during the previous year. The bank has received the profit on account of robust revenue, loan growth and stable asset quality. The lender has also witnessed a huge number of disbursements across its retail loans portfolio including personal loans, car loans and gold loans during this year.
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