HDFC Bank is India's premier private bank with a nationwide network of over 6,500 branches providing banking services as well as retail loans, including car loans to consumers. Banks can finance up to 100% of the 'drive cost' of selected new, electric and used vehicles. Borrowers with a CIBIL score above 750 stand a good chance of availing low interest rates on their HDFC car loan, subject to their income, EMI/NMI ratio exceeding the basic eligibility criteria.
- HDFC Bank Car Loan Rates 2023
- Eligibility for HDFC auto credit
- HDFC Bank Car Loan Features
- HDFC Car Loan Charges
- How to Apply for HDFC Bank Car Loan
- Documents required to apply for HDFC Car Loan
- Frequently Asked Questions
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HDFC Bank Car Loan Rates 2023
Depending on the selected term, interest on the car loan on the remaining amount is charged according to the applicable bank interest rate. Car loan EMI can be fixed or variable rate as per the borrower's choice. The interest rate for a fixed rate EMI is fixed throughout the tenure. Variable rate EMIs fluctuate in line with changes in banks' lending rates and mostly post repo transactions by the Reserve Bank of India (RBI) are reversed every financial quarter.
The following are the "fixed rates" for car loans for which HDFC Bank does not offer interest discounts:
|HDFC Car Loan||rack rate|
|car loan||8.75% in advance per annum|
|Loans for electric cars||8.75% in advance per annum|
|loan for a used car||13.75% in advance per annum|
HDFC Car Loan Policy Rates are correct as on March 9, 2023.
related:SBI car loan rates
Eligibility for HDFC auto credit
HDFC Bank provides car loans to salaried and self-employed individuals with an annual income of at least ₹ 300,000 (₹ 250,000 for used cars). Here's what you need to know:
Officers of Private Limited Companies, PSEs, Central, State or Local Government who have worked for the present employer for more than two years with at least one year eligible for HDFC Car Loan.
Minimum wage (including co-applicants): Annual income should be ₹ 300,000 for a new car and ₹ 250,000 for a used car.
Yes: Minimum 21 years but not more than 60 years on final EMI.
Self-employed persons should be in business for at least two years.
Yes: Minimum 21 years, but not more than 65 years.
Minimum wage (including co-applicants): Annual income should be ₹ 300,000 for a new car and ₹ 250,000 for a used car.
HDFC Bank Car Loan Features
Here are the HDFC Bank car loan features you must know before applying:
maximum loan amount
- Up to INR 3 million on new and electric vehicles.
- Up to INR 2.5 lakh on the purchase of a used car less than 10 years old.
- For people without income documents, used cars can be worth as much as 80% to 85% of their value.
top up credit
It only applies to existing car loan clients.
750 and more.
Some cars and SUVs are zero.
- The period for buying a new car varies from 12 to 84 months.
- Electric vehicles (EV) up to 96 months.
- Used vehicles up to 60 months.
3% to 6% of the outstanding loan amount after paying 7 EMIs and a maximum of 24 EMIs. MSP are zero.
Installment loan for new cars
Allowed after 12 EMIs, charges vary from 3% to 5% of the outstanding loan amount. A maximum of two payments are allowed. MSP are zero.
Prepaid credit for an electric car
Allowed after completion of six EMIs and charged accordingly.
Under Section 80IB of the Income Tax Act, a car loan for the purchase of a new electric vehicle (EV) is eligible for income tax relief on the interest portion of up to INR 1.5 lakh.
HDFC Car Loan Charges
The following fees are applicable for HDFC Car Loans:
|Handling fee||0.5%. No car loan up to INR 5 lakh from MSMEs|
|body||Charged by the state|
|EMI interest due||2% per standard instance|
|ECS/cheque exchange fee||500 rupees|
|cancel the loan||Applicable|
|Doublet NIGHT||500 rupees|
|Loan restructuring fee||500 rupees|
|NOC for conversion from petrol to CNG||250 rupees|
|Civil lawsuits||50 rupees|
|Amortization plan Expenses||50 rupees|
|RTO transfer fee||Applicable|
|Security Fee/ PDD Collection Fee||Refund|
|Automatic Valuation/Confirmation Fee||500 rupees|
Charges applicable on HDFC Car Loans are correct from 9th March 2023.
How to Apply for HDFC Bank Car Loan
The application process and its approval for taking advantage of the benefits of the new auto loan offer is subject to the submission of proof of address, identity and income of the borrower, as well as related documents to the bank. Through its official website, HDFC Bank offers existing and new customers online car loan offers, EMI details and payment terms, as well as a choice of a range of cars and variant options built within the online platform.
The HDFC online car loan application process is self-explanatory. It goes through a series of verification processes via registration email and OTP authentication via SMS. It guides you through the loan EMI calculation process, choosing between new cars and their prices or adding dealer prices. Along the way, it checks your eligibility and asks for confirmation at each approval step to advance the loan process.
The HDFC online application process can also help you get in touch with registered car dealers near you. Borrowers can also add details of loan offers they have received from dealers they have already approached and would like the bank to finance their new car.
In any case, the relevant documents must be submitted to the bank to confirm that you qualify for credit. Borrowers also have the option of submitting documents via email or asking a sales manager to pick them up. The bank then conducts a physical approval, digital payment (PADD) process and upon mutual agreement, the borrower signs and submits an electronic approval consent form authorizing the bank to debit the EMI amount from his bank account.
Documents required to apply for HDFC Car Loan
The documents required to get a new car loan, certified used car or green car loan from HDFC vary from loan applicant to loan applicant as follows:
|Type of loan applicant||document|
|paid person||Two passport size photos. |
address and identification: driving license, voter ID card, passport, NREGA job card, Aadhaar card.
proof of income: Account statements for the past six months, last payroll, form 16.
|self-employed person/company||Two passport size photos. |
address and identification: Driving License, Voter ID, Passport, NREGA Job Card, Aadhaar Card, Telephone Bill, Electricity Bill, Trade and Business Certificate, SSI Registration Certificate, Sales Tax Certificate, Partnership Agreement, Registration Certificate companies, memorandum and articles of association.
proof of income: Bank statements for the last six months, latest ITR, payslips, form 16, audited balance sheet, profit and loss accounts for the last two years.
|Other documents required for buying a used car||Bank certified copy of credit card statement, bank deposit.|
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Used car loan: what it is and how to apply in March 2023
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Frequently Asked Questions
What is HDFC Bank's new car loan rate?
The interest rate for new car loans from HDFC Bank starts at 8.75%. This rate can be increased based on fixed or variable rate, Cibil score, EMI tenure, income etc.
What type of car loan does HDFC Bank offer?
HDFC Bank provides loans for the purchase of new and certified vehicles as well as environmentally friendly cars.
What is the maximum loan amount I can get for a new car?
HDFC Bank can finance up to 100% of the on-road value of selected new and variant cars from your nearest dealer. However, the loan amount may vary depending on your income and cibil points above the basic eligibility criteria.
How much loan does HDFC Bank offer for buying a used car?
HDFC Bank offers three to six times the borrower's annual earnings for applying for a loan to buy a certified used vehicle. However, used cars must not be older than 10 years. The bank will help borrowers find used cars through its registered dealers as well as transfer ownership or ownership of the car.
In December of 2022, the Fed indicated that it expects the funds rate to fall to 4.1% by the end of 2024 after reaching the 5.1% mark by the end of 2023. If that holds true and the federal interest rate begins to fall, auto loan rates should start to drop shortly after.What is the current interest rate for HDFC car loan? ›
The rack rate of interest on new car loans of HDFC Bank starts from 8.75% onwards. This rate can go up based on the fixed rate or floating rate, Cibil score, EMI tenure, income, etc.Is HDFC car loan fixed or floating? ›
No, the car loan EMI is not fixed. It depends on whether the interest rated opted by you if a fixed rate or a floating rate. If the interest rate is a fixed one, then your monthly EMI is also fixed. However, if you opt for a floating interest rate, then your EMI amounts fluctuate depending on the monthly interest rate.Are car loan rates increasing? ›
Annual percentage rates have especially increased over the past two years. In particular, the average loan rate to lease a new car or truck has more than doubled since March 2021. High loan rates mean monthly payments are soaring as well.Should I buy a car now or wait until 2023? ›
Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.How high will interest rates go by the end of 2023? ›
So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.Which bank has lowest car loan interest? ›
|Bank Name||Best Car Loan Interest Rate|
|SBI Car Loan||7.20% p.a. onwards|
|Federal Bank Car Loan||8.50% p.a. onwards|
|Canara Bank Car Loan||7.30% p.a. onwards|
|Bank of Baroda Car Loan||7.00% p.a. onwards|
“Unless you have poor credit or your loan term is 72 or 84 months, 7.5% is a bit high. Keep shopping around and you can probably find a better rate if you have decent credit. You should be able to find a rate of five percent to six percent if you're creditworthy.Which bank has the lowest interest rate? ›
|List of Banks/Lenders||Personal Loan Interest Rates||Loan Amount|
|ICICI Bank||10.75% - 19.00%||Upto INR 50 lakh|
|IDBI Bank||10.50% - 13.25%||Upto INR 10 lakh|
|IndusInd Bank||10.25% - 26.00%||Upto INR 25 lakh|
|Jammu & Kashmir Bank||12.20% - 13.20%||Upto 36 months gross salary|
Those unsure of where the interest rates will head should go for floating loan interest rates. It must be remembered that fixed home loans come with a prepayment penalty. As lenders do not risk loss in interest rate which fixed interest rates bring. Floating home loans come with no prepayment penalty.
Flat Interest Rate
The financial organization decides on the repayment schedule and decides the EMIs payable by the borrower. It also keeps the total repayment liability fixed for a borrower and helps plan finance beforehand. Flat interest rates effectively remain higher than reducing rates.
Most auto loans are simple interest loans, which means that the amount of interest you pay each month is based on your loan balance on the day your payment is due. If you pay more than the minimum due, the interest you owe and your loan balance can decrease.What is a good interest rate for a car for 72 months? ›
An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.Will car prices drop with interest rates rising? ›
Of course, if interest rates continue to rise, as economists predict, to slow the economy and cool inflation, car values will drop further and put even more loans underwater, said Patrick Roosenberg, director of auto finance for JD Power.What is a good interest rate for a car? ›
|Category||Score Range||New car average interest rate|
Used car prices have likely peaked, but new car prices are expected to remain high. In 2023, prices are expected to decline by roughly 10% for used cars and by 2.5% to 5% for new cars.Will car prices normalize in 2023? ›
The good news for consumers is that used car prices are declining and experts expect the trend to continue in 2023. Unfortunately, the drop won't come close to wiping out the massive surge in values that stretched from the spring of 2020 to the beginning of last year.What is the vehicle forecast for 2023? ›
Overall Vehicle Sales Will Inch Closer to a Rebound in 2023
As the macroeconomic outlook worsens for the automotive industry, a modest return to growth is expected for new consumer and commercial vehicle sales in the next two years. ABI Research forecasts global vehicle sales growth of 5.1% in 2023, and 3.3% in 2024.
These organizations predict that mortgage rates will decline through the first quarter of 2024. Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point.What will interest rates be in 2023 and 2024? ›
The Fed penciled in a 5-5.25 percent peak interest rate for 2023, after which officials see rates falling to 4.25-4.5 percent by the end of 2024.
Average 30-Year Fixed Rate
After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 14-year high in 2022. Many experts and industry authorities believe they will follow a downward trajectory in 2023. Whatever happens, interest rates are still below historical averages.
How to qualify for a 0% APR car deal. Zero percent financing deals are generally reserved for borrowers with excellent credit — typically classified as a credit score of 800 and above. You'll want to review your credit reports before you start shopping for auto financing.Is it cheaper to get a car loan through your bank? ›
The primary benefit of going directly to your bank or credit union is that you will likely receive lower interest rates. Dealers tend to have higher interest rates, because dealers add a markup to the interest rate when they connect you with a lender.Will banks negotiate interest rates car loans? ›
Yes, just like the price of the vehicle, the interest rate is negotiable. The first rate for the loan the dealer offers you may not be the lowest rate you qualify for.How much is a $40,000 car payment for 72 months? ›
If you take a car loan of $40000 at an interest rate of 4.12% for a loan term of 72 months, then using an auto loan calculator, you can find that your monthly payment should be $628.How much is a $40,000 car payment? ›
For $40,000 loans, monthly payments averagely range between $900 and $1,000, depending on the interest rate and loan term.How much is a 30k car payment for 72 months? ›
The total interest amount on a $30,000, 72-month loan at 5% is $4,787—a savings of more than $1,000 versus the same loan at 6%. So it pays to shop around to find the best rate possible.What is the interest rate in 2023? ›
Current Refinance Rates for June 2023
30-year fixed: 7.16% 15-year fixed: 6.73% 30-year jumbo: 7.21%
- UFB DIRECT: 3.83% APY. Minimum deposit: None. ...
- Bask Bank: 3.6% APY. Minimum deposit: None. ...
- Upgrade: 3.5% APY. Minimum deposit: None. ...
- CIT Bank: 3.25% APY. Minimum deposit: $100. ...
- LendingClub: 3.25% APY. ...
- Marcus by Goldman Sachs: 3% APY. ...
- SoFi: 3% APY. ...
- Discover: 3% APY.
Decreasing Interest Rates
When banks can borrow funds from the Fed at a less expensive rate, they are able to pass the savings to banking customers through lower interest rates charged on personal, auto, or mortgage loans.
Is a Variable or Fixed Rate Better? In a period of decreasing interest rates, a variable rate is better. However, the trade off is there's a risk of eventual higher interest assessments at elevated rates should market conditions shift to rising interest rates.Why is fixed rate better? ›
A fixed rate is generally higher to accommodate potential increases due to future market conditions. A variable rate can start off lower because it reflects market conditions.Why do banks prefer floating rates? ›
Banks offer floating-rate loans at lower cost because these loans help them match the interest-rate exposure of their own short-term liabilities.Does putting more than 20% down lower interest rate? ›
Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender's risk because the borrower has more equity in the home from the beginning.How can I lower my interest rate? ›
- Paying your bills on time.
- Keeping your balances low.
- Paying off any debt in a timely manner.
- Diversifying your credit mix if possible.
- Keeping overall credit utilization low.
Pay Off the Card with the Highest Rate
If you've got unpaid balances on several credit cards, you should first pay down the card that charges the highest rate. Pay as much as you can toward that debt each month until your balance is once again zero, while still paying the minimum on your other cards.
Your car payment won't go down if you pay extra, but you'll pay the loan off faster. Paying extra can also save you money on interest depending on how soon you pay the loan off and how high your interest rate is.What is the best length of time for a car loan? ›
Fewer years to pay
A longer loan term could mean making payments for five to seven years. A shorter, two- to four-year term will put you in full possession of your car much sooner, which means you'll get the money back in your monthly budget and can use it to pay down higher-interest debts or save.
An 84-month auto loan can mean lower monthly payments than you'd get with a shorter-term loan. But having as long as seven years to pay off your car isn't necessarily a good idea. You can find a number of lenders that offer auto loans over an 84-month period — and some for even longer.Is 7% interest on a car loan bad? ›
Car Loan APRs by Credit Score
Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. Good (700 - 749): 4.03 percent for new, 5.53 percent for used. Fair (650 - 699): 6.75 percent for new, 10.33 percent for used. Poor (450 - 649): 12.84 percent for new, 20.43 percent for used.
Is a 72-month car loan worth it? Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn't an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go.How to pay off 72-month car loan early? ›
- Refinance with a new lender. Refinancing can be an easy way to pay off your loan faster. ...
- Make biweekly payments. ...
- Round your payments to the nearest hundred. ...
- Opt out of unnecessary add-ons. ...
- Make a large additional payment. ...
- Pay each month.
In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.Why are auto loan rates so high? ›
Automotive experts said there's a couple reasons why auto-loan costs are climbing. The Federal Reserve is still raising its benchmark interest rate in its continued fight against inflation, which is simultaneously pushing auto rates higher.Are people buying cars with high interest rates? ›
In particular, the average loan rate to lease a new car or truck has more than doubled since March 2021. High loan rates mean monthly payments are soaring as well. In March, the average monthly payment for financing a new car hit $730 — the highest on record, according to Edmunds.What is the average interest rate on a car loan 2023? ›
|Credit Score||New Car Loan||Refinance Car Loan|
|750 or higher||12.19%||7.41%|
|Credit score||Average interest rate for new car loans||Average interest rate for used car loans|
|781 to 850||3.84%||3.69%|
|661 to 780||4.9%||5.47%|
|601 to 660||7.25%||9.81%|
|501 to 600||10.11%||15.86%|
750 is a good credit score that can get you car loans with equally as good rates. They aren't the best, but they are still in the top five. More specifically, you would be able to qualify for apr rates of anywhere from 3% to 6% for a new car loan and 5% to 9% for a used car loan.What will car rates be in 2023? ›
Car prices may be coming down after two years of inflated prices brought on by supply-chain issues that occurred during the pandemic. Prices could drop up 5% for new vehicles and 10% to 20% for used vehicles in 2023, according to a report in November from J.P. Morgan.What are car interest rates 2023? ›
|Credit Score||Average APR (New Car)||Average APR (Used Car)|
Conclusion: Is 2023 a Good Time To Buy a Car? Considering vehicle prices are still inflated and loan rates may be on the rise, it's not the best time to buy a car. However, auto prices may continue to level off during the rest of the year, which would be a good sign for car buyers.Will vehicle interest rates go up in 2023? ›
May 2023 Fed rate change
The updated target range for the federal funds rate is set at 5-5.25 percent as of May 3, 2023. This number does not control auto rates directly. Rather, it is tied to the prime rate. Simply, this steep rate increase means that vehicle financing could cost you more money.
The average interest rate on a new car loan with a credit score of 750 is 4.90%, while the average interest rate on a used car loan is 5.47%.What will interest rates be in 2023 2024? ›
|Loan Type||10-Year Treasury Note High Yield||Fixed Interest Rate|
|Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students||3.448%||5.50%|
|Direct Unsubsidized Loans for Graduate and Professional Students||3.448%||7.05%|
Yes, it is possible to get a 0% interest rate loan when you buy a car. In fact, it is a common financial incentive in the automotive sales industry. You might even find opportunities to get a 0% APR loan with no money down if you qualify for both offers.What will interest rates do in spring 2023? ›
Mortgage Rate Predictions for Spring 2023. Most forecasters say that the average 30-year fixed mortgage rate will be at or slightly above 6% during the second quarter of 2023, which includes the spring months of April, May and June.What is the best time of year to buy a car? ›
In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.