Minus/plus icon
ResourcesExplore the full ACKO experience and make the most of your plan

Home / Car Insurance / Articles / Lowest HDFC Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Lowest HDFC Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Team AckoJul 18, 2023

When it comes to purchasing a car, financing options play a crucial role in making it affordable for many individuals.

One of the leading financial institutions in India, HDFC Bank, offers car loans to customers at competitive interest rates.

In this article, we will explore HDFC car loan interest rates, understand the factors that influence them, and provide you with valuable information to make an informed decision.




HDFC Car Loan Interest Rates in 2023

The following tables provide more details about the HDFC bank car loan interest rates as of July 2023.

HDFC Car Loan Scheme

Rack Interest Rate

New Car Loan

8.85% onwards

EV Car Loan (Electric Vehicle)

8.75% onwards

Used Car Loan

13.75% onwards

Features of HDFC Car Loan

Here are the key features of the HDFC car loan schemes.

  • Get a car loan of up to 100% of the on-road price of the vehicle.

  • Low down payments.

  • Competitive and fixed interest rates on car loans.

  • Loan approval in just 30 minutes.

  • Flexible loan tenure of up to 7 years.

  • No paperwork or verification is required for loan approval.

  • HDFC offers optional health coverage.

How to Calculate HDFC Bank Car Loan EMI

To calculate the EMI (Equated Monthly Installment) for an HDFC Bank car loan, you can follow these steps.

Step 1. Gather the necessary information: You must gather the following information required for EMI calculation.

  • Loan amount: The total amount you plan to borrow from HDFC Bank for your car purchase.

  • Interest rate: The interest rate offered by HDFC Bank for the car loan.

  • Loan tenure: The duration or repayment period of the loan in months.

Step 2. Convert the interest rate: Divide the annual interest rate by 12 to get the monthly interest rate. For example, if the annual interest rate is 8%, the monthly interest rate would be 8%/12 = 0.0067.

Step 3. Calculate the EMI using the formula: Calculate the EMI with the following formula.

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

P is the loan amount

R is the monthly interest rate

N is the total number of monthly instalments (loan tenure)

Step 4. Complete the calculation: Plug in the values into the formula and calculate the EMI.

Eligibility Criteria: HDFC Car Loan Eligibility

To get an HDFC car loan to buy a new or second-hand car, the applicant must fulfil the following eligibility criteria.

  • Applicant’s Age: For salaried individuals, the minimum age requirement is 21 years, while the maximum age requirement is 60 years by the completion of the loan tenure. As for self-employed individuals, the minimum age requirement is also 21 years, but the maximum age requirement is 65 years at the end of the loan tenure.

  • Employment Status: The loan applicant can be either a salaried professional employed by a private or public limited company or a self-employed individual engaged in various business activities such as running a business, being part of a partnership or private limited firm, or serving as a director of a public limited company.

  • Salary Requirement: To be eligible, a salaried individual must have a minimum annual income of Rs. 3 lakhs, which includes the income of their spouse or co-applicant. The income requirements for self-employed individuals also stand at Rs. 3 lakhs per annum.

Application Process: How to Apply for HDFC Car Loan

There are two methods to apply for an HDFC car loan. The following sections explain the same.

Online Process

  • You can visit the official website of HDFC Bank and select the “Car Loan” option under the “Borrow” menu. 

  • Once you choose the type of loan, click on the “Apply Now” button.

  • Fill in the required details on the next page and submit the loan application.

Offline Process

Visit your nearest HDFC bank branch and enquire about the car loan. The bank official will guide you through the loan application process.

Documents Required to Apply for a Car Loan from the HDFC Bank

Here is the list of documents you need to apply for an HDFC car loan.

Salaried Applicants

  • Identity proof (Driving Licence, Passport, Voter ID card, etc.)

  • Address Proof (Aadhaar Card, Driving Licence, Passport, etc.)

  • Income proof (Latest salary slip and Form 16)

  • Previous 6 months' bank statement.

Self-Employed Applicants

  • Identity proof (Passport, Voter ID card, Driving Licence, etc.)

  • Address Proof (Voter ID card, Driving Licence, Passport, etc.)

  • Income proof (Latest Income Tax Returns)

  • Previous 6 months' bank statement.

Self-Employed Applicants (Partnership firms, Private/Public Limited Companies)

  • Address proof (Electricity bill, telephone bill, Sales tax certificate, etc.)

  • Income proof (Company ITR of last 2 years, audited balance sheet, profit and loss account for the last 2 years)

  • Previous 6 months' bank statement.

Factors Affecting HDFC Bank Car Loan Interest Rates

Several factors can influence the HDFC car loan interest rates. These factors include the following.

  • Credit Score: A good credit score indicates a borrower's creditworthiness and repayment ability. HDFC Bank may offer lower interest rates to individuals with higher credit scores.

  • Loan Amount: The loan amount requested by the borrower can affect the interest rate. Generally, larger loan amounts may have lower interest rates compared to smaller loan amounts.

  • Loan Tenure: The duration of the loan, or loan tenure, can impact the interest rate. Shorter loan tenures may have lower interest rates, while longer loan tenures may have higher interest rates.

  • Type of Car: The type and age of the car being financed can affect the interest rate. HDFC Bank may offer different interest rates for new cars, used cars, and specific car models.

  • Income and Employment Stability: The borrower's income level and stability of employment are crucial factors. A higher income and a stable employment history can help secure lower interest rates.

  • Existing Relationship with HDFC Bank: Existing customers of HDFC Bank may be eligible for preferential interest rates or special offers based on their relationship with the bank.

Check Out Car Loan Interest Rates from Other Banks in India (2023)

The following table lists the car loan interest rates (as of July 2023) of various banks in India.

Bank Name

Car Loan Interest Rate (Per Annum)

State Bank of India

8.60% onwards

Bank of Baroda

8.70% onwards

Union Bank of India

8.80% onwards


8.85% onwards (Rack Interest)

Federal Bank

11% onwards

Axis Bank

8.75% onwards

Canara Bank

8.80% onwards

Punjab National Bank

8.75% onwards


8.85% onwards

Kotak Mahindra Bank

7.70% onwards

Bank of India

8.85% onwards

IndusInd Bank

7% onwards

Yes Bank

9.7% onwards

UCO Bank

8.70 onwards

Frequently Asked Questions about HDFC Car Loan

Here are a few commonly asked questions and their answers about HDFC car loans.


What is the current HDFC car loan interest rate?

Currently, the HDFC car loan interest rates start at 8.75%.

Is the HDFC car loan interest rate fixed or floating?

It depends on the type of interest you opt for. If you opt for a fixed interest rate, the EMI is also fixed. On the other hand, if you opt for a floating interest rate, the EMI will vary depending on the monthly interest rate.

What is the maximum loan tenure available for HDFC car loans?

HDFC offers flexible loan tenures for car loans. The maximum loan tenure can vary, typically ranging from 1 year to 7 years. The exact maximum tenure will depend on HDFC's policies and the specific car loan product.

What is the interest rate for HDFC car loans?

The interest rates for HDFC car loans can vary based on factors such as the loan amount, tenure, and the applicant's creditworthiness. It is advisable to contact HDFC or visit their website for the current interest rates and any applicable offers.

Can I prepay my HDFC car loan?

Yes, HDFC allows borrowers to prepay their car loans. However, certain terms and conditions, such as prepayment charges, may apply. It is recommended to review the loan agreement or contact HDFC for detailed information regarding prepayment options.

Can I get a car loan from HDFC if I have a bad credit score?

HDFC car loan eligibility criteria typically include a good credit score. However, it is best to contact HDFC directly to discuss your specific situation and explore possible options.

Disclaimer: The above content is for informational purposes only. It is recommended to take the help of an expert before making a decision.


Want to post any comments?


Upto 85% Off on Car Insurance!

Buy or Renew Car Insurance in 2 Minutes ⚡

Car number

Looking to insure brand new car?

Zero commissions, big savings

quote icon

Get Quote

quote icon