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HDFC Car Loan Interest Rate

HDFC Car Loan Interest Rate Oct 2021

Last Updated 07th Oct 2021

HDFC Bank New Car Loan interest rate starts from 13.75% and HDFC Bank Used Car Loan interest rates starts from 13.75%. 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 0.50% Min ₹ 3,500 Max ₹ 8,000 2.00% Min ₹ 5,000
Loan Tenure Upto 7 years Upto 7 years
Lowest EMI ₹ 1,860 per lakh ₹ 1,860 per lakh
Loan Amount Upto 100% of ex-showroom price Upto 100% of market value
Prepayment Charges 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

Upto 7 years 100% On-Road Finance

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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:

  • Upto 7 years 100% On-Road Finance
  • ZipDrive-Instant New Car Loan
  • Custom-fit Car Loans: Perfect way to get your perfect car the way you want it
  • Preferred Pricing for HDFC Bank customers
  • Zero foreclosure charges: Zero Foreclosure after 24 months of repayment
  • Flexible Repayment
  • 1 out of every 3 Cars is Financed by HDFC Bank
  • Quick and easy Processing and Approval
  • Step-Up / Balloon EMI Options
  • Top-up Loans after 9 months

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.

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: ₹ 3 Lakhs
Self Employed Professionals: ₹ 3 Lakhs
Self Employed Businessmen: ₹ 3 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 ₹ 3 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 ₹ 1,860 per lakh loan amount at lowest car loan interest rate of 8.65%. 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.


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

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


  • 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 ₹ 7,00,000 to be paid back over 5 years at an interest rate of 8.65%. Your monthly payments for this loan after applying the above formula would be ₹ 14,412 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 5% from 13-24 months, 3% after 24 months.

Processing Fee - HDFC Bank asks for a processing fee of 0.50% of loan amount. Min. ₹ 3,500 and Max. ₹ 8,000 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


  • 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.


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 13.75%to 16.00%.

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

Lowest EMI per lakh is ₹ 945 for HDFC Bank for a loan availed at an interest rate of 13.75% 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 0.50% of loan amount Min.₹ 3,500 and Max. ₹ 8,000 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 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.

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HDFC Car Loan News - Oct 2021
  • 2021-10-05 : HDFC Bank Reports Growth in Advances in Q2
    HDFC Bank has reported a growth in advances by 15.4% in quarter 2. As a result, the advances have grown to ₹ 11.98 lakh crore as of September 30, 2021, from ₹ 10.38 lakh crore a year ago.
  • 2021-08-13 : HDFC Bank presents Festive Offer
    HDFC Bank is offering various offers on the occasion of the Onam festival in Kerela. It is offering benefits on a car loan, two-wheeler loan, home loan, business loans, gold Loan, Loan against Securities and Loan against the property. Also, HDFC debit cards and credit cardholders will also get cashback and discounts. This offer is valid till September 30, 2021.
  • 2021-07-08 : HDFC Bank loan growth hit amidst covid-19 pandemic
    Private lender HDFC Bank numbers for the June quarter showed loan growth moderation and contraction in its retail credit book. The bank slowed its retail disbursements which were down 30% sequentially, reflecting the impact of the second Covid wave. The continued weakness in the retail segment led to retail segment share in total loans that include Personal Loan, Home Loan, Loan Against Property, Business Loan, Gold Loan, Two-wheeler Loan, Car Loan, Education Loan and Top-up Loan slipping down to 45% from 47% in June quarter last year.
  • 2021-06-21 : HDFC Bank to refund GPS device charges to customers
    India’s largest private-sector lender, HDFC Bank Ltd, on Thursday said that it will refund commissions to auto loan customers who had availed of a bundled GPS device between FY14 and FY20. HDFC Bank executives pushed auto loan customers to buy GPS devices for ₹18,000-19,500 from 2015 to December 2019. The device in question was sold by Trackpoint GPS, a Mumbai-based firm.
  • 2021-05-28 : HDFC Bank commits Rs 100 cr towards COVID relief in FY22
    HDFC Bank committed Rs 100 crore for setting up medical infrastructure for COVID-19 relief in 2021-22. The bank is planning to set up 20 oxygen plants in hospitals besides three 100-bed COVID care facilities as part of the plan.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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