HDFC Bank is a scheduled private sector bank in India, with a nationwide network of over 6,500 branches, offering retail banking and lending services, including car loans to consumers. The bank can finance up to 100% of the ‘on-the-road price’ on selected new cars, electric vehicles and used cars. Borrowers with a CIBIL score above 750 stand a high chance of availing low interest on their HDFC Car Loans subject to their income, EMI/NMI ratio over and above the basic eligibility criteria.
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HDFC Bank Car Loan Interest Rates in 2023
The car loan interest rate is applied to the outstanding amount as per the tenure selected at the bank’s prevailing loan rate. The EMI of a car loan can be of fixed or variable rate chosen by a borrower. The interest rate of a fixed rate EMI is fixed throughout the tenure. The EMI on the floating rate fluctuates based on the change in the bank’s lending rate and changes mainly after the repo reset by the Reserve Bank of India (RBI) every financial quarter.
HDFC Bank’s ‘Special Rates’ on car loans without discount on interest rates are as follows:
HDFC Car Loan General Interest Rate is accurate as on 9 March 2023.
Related: SBI Car Loan Interest Rate
Eligibility to apply for HDFC Car Loan
HDFC Bank offers car loans to salaried and self-employed individuals with a minimum annual income of INR 3 lakh (INR 2.5 lakh for used cars) per annum. Here’s what you need to know:
Salaried persons
Salaried employees of a private limited company, PSE, central, state or local government bodies working for more than two years with a minimum of one year with the current employer can apply for HDFC car loans.
Minimum wage (including co-applicant): Annual income should be INR 3 lakh for new car purchase and INR 2.5 lakh for used car.
age: Minimum 21 years but not more than 60 years at the final EMI.
Self-employed people
Freelancers should be in business for a minimum of two years.
age: Minimum 21 years, but no more than 65 years.
Minimum wage (including co-applicant): Annual income should be INR 3 lakh for new car purchase and INR 2.5 lakh for used car.
Features of HDFC Bank Car Loan
Here are the HDFC Bank car loan features you need to know before applying for one:
Maximum loan amount
- Up to INR 3 million for purchase of new cars and electric vehicles.
- Up to INR 2.5 million for the purchase of used cars not exceeding 10 years.
- Up to 80% to 85% of the value of a used car for people without income documents.
Reloading loans
For existing car loan customers only.
Credit score requirement
750 and above.
Deposit
Nil on select cars and SUVs.
Co-application
Optional.
Amortization period
- From 12 to 84 months for the purchase of new cars.
- Up to 96 months for electric vehicles (EV).
- Up to 60 months for used cars.
Mortgage execution
Charges of 3% to 6% of the outstanding loan amount applied after paying seven EMIs and up to 24 IMEs. Nil for MSMEs.
Partial payment on new car loans
It is allowed after 12 EMIs, and charges range from 3% to 5% of the outstanding loan amount. Up to two partial payments are allowed. Nil for MSMEs.
Prepayment of electric vehicle loans
It is allowed after completing six EMIs, with applicable charges.
insurance
Optional.
Tax benefit
Car loans applied for purchase of a new electric vehicle (EV) are eligible for income tax deduction on the interest portion of the payment up to INR 1.5 lakh under section 80IB of the Income Tax Law.
Charges on HDFC Car Loans
The following charges apply to HDFC Car Loans:
Charges applicable on HDFC Car Loans are accurate as of March 9, 2023.
How to Apply HDFC Bank Car Loan
The application process for availing a new car loan quote and its approval are subject to the submission of proof of address, identity and income of the borrowers and related documents to the bank. HDFC Bank through its official website offers existing and new customers to get their car loan quote online, with EMI and repayment term details as well as select from a variety of car options and variants created on the online platform.
HDFC online car loan application process is self-explanatory. It undergoes a series of verification processes using registered email and SMS OTP authentication. It will guide you through the process to calculate the loan EMIs, select the new cars and their price or add the dealer price. In the process, it checks your eligibility and at each approval stage, requests verification to move forward with the loan process.
The HDFC online application process also helps you connect with registered car dealers near your location. Borrowers can also add details of the loan quote received from dealers they have already approached and want the bank to finance their new car.
Either way, the relevant documents must be submitted for banks to confirm your eligibility for the loan. Borrowers can also choose to email their documents or have a sales representative deliver them to their door. The bank then conducts a physical approval and digital disbursement (PADD) process and based on mutual agreement, the borrowers sign and submit the e-mandate consent to authorize the bank to deduct the amount of the EMI of your bank account.
Documents required to apply for HDFC Car Loan
Documents required for availing HDFC New Car Loan, Certified Pre-Owned Car or Eco-friendly Car Loan vary depending on the loan applicants as follows:
Useful resources
Best Car Loans in India
SBI Car Loan Interest Rate
ICICI Bank Car Loan Interest Rate
Bank of Baroda Car Loan Interest Rate
Second hand car loan: meaning and how to apply for one in March 2023
What is a good credit score?
Frequently asked questions (FAQ)
What is the interest rate on HDFC Bank New Car Loans?
The general interest rate on HDFC Bank new car loans starts from 8.75%. This rate may increase depending on the fixed or variable rate, Cibil score, EMI tenure, income etc.
What type of car loans does HDFC Bank offer?
HDFC Bank offers loans to buy new and certified vehicles as well as green cars.
What is the maximum loan amount I can get for a new car?
HDFC Bank can finance up to 100% of the car’s on-road price on new cars and selected variants from dealers nearest to your location. However, the loan amount may vary based on your income and your credit score above the basic eligibility criteria.
How much loan does HDFC Bank offer to buy used cars?
HDFC Bank offers three to six times the annual income of borrowers on loans applied for for the purchase of certified used cars. However, the used car should not be more than 10 years old. The bank will help borrowers find used cars as well as transfer titles or ownership of the car through its registered dealers.
