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Car Loan Interest Rates (January 2026)


HDFC Bank Car Loan interest rates and charges

Vehicle Loan interest rates are quite affordable when you borrow from HDFC Bank. Here are HDFC Bank's new car interest rates and charges

 

Description of charges New Car Loans
Documentation charges* ₹700 per case (charges not to be refunded in case of case cancellation.)
Premature closure charges (for full payment)*

For pre-closures within one year, the charges will be 6% of the outstanding principal.
For pre-closures within one year, the charges will be 6% of the outstanding principal.
For pre-closures within 13-24 months from the first EMI, the charges will be 5% of the outstanding principal.
For pre-closures post 24 months from the first EMI, the charges will be 3% of the outstanding principal.
 

For loan availed on or after 1st December 2025.
Pre-closure charges will be 5% of the Principal Out standing
 

If you own a micro or small enterprise and have availed a fixed rate loan facility up to ₹50 Lakhs, you will not be charged any premature closure fees if you make a full payment from your own source.
Premature closure charges (for part payment)*

During the loan tenure, part payment will be allowed twice only.
You can make a part payment at any time, but it cannot exceed 25% of the outstanding principal amount.
In a year, only one part payment is allowed.
If the part prepayment is within 24 months from the first EMI, a charge of 5% will be levied on the part payment amount. If the part prepayment is post 24 months from the first EMI, a charge of 3% will be levied on the part payment amount.

 

For loan availed on or after 1st December 2025.
Pre-closure charges will be 5% of the Part Payment amount

 

If you own a micro or small enterprise and have availed a fixed rate loan facility up to ₹50 Lakhs, you will not be charged any premature closure charges if you make a part payment from your own source.
Stamp duty & Other Statutory Charges(non-refundable) As per actuals which are applicable in laws of the state. (Including RTO charges).
Interest on delayed EMI Payment: Interest will be charged on unpaid EMI for the number of days EMI is late. This interest is calculated at loan's contracted rate and will be added to next EMl.
Processing fees* (non-refundable)

Up to 0.5% of the loan amount subject to a minimum of ₹3,500 and a maximum of ₹8,000.

 

For loan facilities up to ₹5 Lakhs availed by micro and small enterprises subject to URC submission before disbursal, no processing fees will be charged.
Repayment Mode changes charges ₹500 per instance
Loan cancellation Charges NIL cancellation charges.
(However, interest charges from the date of disbursement till the date of cancellation of loan will be borne by the customer. Processing fee Stamp duty and documentation Charges are non-refundable charges and would not be waived / refunded in case of loan cancellation.)
Legal, repossession and incidental charges At actuals
Duplicate no due certificate / NOC ₹250 per instance
Loan rescheduling charges / rebooking charges ₹400 (To make changes on RC, you will need to pay a refundable security deposit of ₹5,000. This deposit is non-interest bearing and will be repaid once you provide the transferred Registration Certificate to the bank.)
LPG / CNG NOC / Inter State / other special NOC ₹200 per NOC
Bureau charges (only on request) ₹50
Payment return charges* ₹450 per instance + GST
Amortisation schedule charges / Repayment schedule charges ₹50 per schedule for physical copy.
Customer can also download the schedule from the link free of cost
Commercial / personal use NOC (conversion subject to credit approval) ₹200 per NOC
Registration Certificate (RC) Collection Fees ₹600 per case (To be refunded in case of case cancellation.)
Rack interest rate 9% onwards depending on loan amount, tenure & CIBIL score
RTO transfer charges At actuals

 

In case of Inter State NOC refundable Security Deposit (non-interest bearing) of Rs 5000 will be taken. It will be the borrower's responsibility to provide the transferred Registration certificate to the bank.

 

Points to remember:

You are advised not to engage in any cash transactions with the bank’s direct sales associates. You should also avoid making any payments in cash, bearer cheque, or any kind in connection with your loan to the executive handling the loan application.

 

Note: Government taxes and other levies as applicable will be charged over and above the Fee and Charges. All promotional offers will be null and void in case of third-party payments towards foreclosure and shall attract charges as per the standard grid. Registration Certificate Collection fees is refundable in case of loan cancellation

 

**Registration Certificate Collection fees is refundable in case of loan cancellation

 

Rates offered to customer during the period of  Jul 25 to Sep 25.

 

Bank IRR
Product Min IRR Max IRR Avg IRR
AUTO LOAN 7.90% 14.05% 8.94%

 

Annual Percentage Rate offered to customer during the period of  Jul 25 to Sep 25.

 

APR
Product Min APR Max APR Avg APR
AUTO LOAN 7.91% 19.32% 9.10%

 

# If you pay your EMI after the due date, interest will be charged on unpaid EMI for the number of days you are late. This interest is calculated at your loan’s contracted rate and will be added to your next EMI. 

 

Example:
 

📅 EMI Due Date: 10th

💰 Payment Made On: 25th

⏳ Delay: 15 days

💸 Impact: Interest for these 15 days will be added to your next EMI. 
 

Please pay on time to avoid this.

 

  • Click here to learn more about the HDFC Bank New Car Loan 

  • Click here to apply for a HDFC Bank Car Loan

  • Click here for the most important Terms & Conditions

Disclaimer: Terms and conditions apply. New Car Loan approvals are at the sole discretion of HDFC Bank Limited and are subject to documentation and verification as per the Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.

Frequently Asked Questions

The interest charge on a Car Loan varies depending on factors such as the loan amount, tenure, and CIBIL score. The rack interest rate starts from 9.40% onwards. This rate is determined based on the borrower's creditworthiness, with a lower CIBIL score potentially leading to a higher interest rate. The interest charge is a significant component of the total cost of the loan and should be carefully considered when applying for a Car Loan. It is advisable to compare rates from different lenders to ensure you get the best deal possible.

The processing fees for HDFC Bank’s Xpress Car Loan vary based on the loan amount. It can range from a minimum of ₹3,500 to a maximum of ₹8,000, up to 0.5% of the loan amount. However, for micro and small enterprises availing loan facilities up to ₹5 lakhs, there are no processing fees if the URC is submitted  before disbursal. This fee is non-refundable and covers the administrative costs associated with processing the loan application. It's essential to factor in

HDFC Bank offers a seamless and convenient Auto Loan application process. You can apply for your Car Loan through HDFC Bank NetBanking services. Also, if you are an existing HDFC Bank customer, you may be eligible to get a pre-approved Car Loan in just 10 seconds. For more information, you can log into your HDFC Bank NetBanking account.

Before you apply for car finance, it is important to determine how much EMI you are comfortable paying. To know about the EMI you might have to pay, you can use the HDFC Bank Car Loan EMI Calculator.

You should check your Car Loan eligibility before applying. Both steps will let you prepare for your Car Loan application.

  • Here are some tips to get your Car Loan approved faster:
  • Get your Know Your Customer (KYC) details handy.
  • If you apply for a Car Loan online, it can get processed and approved faster.
  • Being an existing HDFC Bank customer makes you eligible for a pre-approved Car 
  • Loan that you can get in just 10 seconds.

Yes. HDFC Bank offers you up to 100% on-road funding for selected models of cars.

There’s no specified minimum credit score for getting a Car Loan from HDFC Bank. But a lower credit score can reduce the loan amount you can get. A credit score above 750 is considered excellent for loans. This will allow you to get a higher loan amount at the most affordable Car Loan rates.

HDFC Bank allows you to avail of zero-downpayment Car Loans. For select cars, the bank provides 100% financing of the on-road price of your car. This eliminates the burden of a downpayment.

HDFC Bank offers flexible tenure for Car Loan products. While the minimum tenure is 12 months, the maximum loan tenure you can avail of is up to 8 years for EVs. View tenures for Custom-Fit and Balloon EMI Car Loans here

Existing HDFC Bank Car Loan customers can share their Car Loan documents online through email. You can also request the Sales Manager of your car dealership to pick up the required documents at your convenience. Once the bank receives them, it will proceed with the Physical Approval, Digital Disbursal (PADD) process. You will receive an e-mandate form as consent for deducting EMIs from your HDFC Bank account.

You can check the status of your New Car Loan by using the HDFC Bank loan status checker.

When you take a new car loan from HDFC Bank, you will be required to pay documentation charges of ₹650 per case. These charges are non-refundable, even if the loan application is later cancelled.

For full pre-closure of your HDFC Bank car loan, you will be charged 6% within 1 year, 5% between 13–24 months, and 3% after 24 months on the outstanding principal. Micro or small enterprises repaying from own sources are exempt.

You are allowed two part payments during the HDFC Bank car loan tenure, only one per year. Part prepayment cannot exceed 25% of the outstanding principal.

 

Stamp duty and other statutory charges for HDFC Bank car loans will be charged as per actuals, based on applicable state laws. This also includes Regional Transport Office (RTO) charges and cannot be refunded under any circumstance.

If your HDFC Bank car loan instalment is delayed, you will be charged interest at 18% per annum or 1.5% per month on the overdue amount. Applicable government taxes will also be added to this delayed instalment penalty.

 

Yes, you will be charged ₹500 for every instance where you request a change in the repayment mode on your HDFC Bank car loan. This fee applies to each request separately and is non-refundable.

 

For rescheduling or rebooking your HDFC Bank car loan, you must pay ₹400. Additionally, to make changes to the Registration Certificate (RC), a refundable security deposit of ₹5,000 is required, which earns no interest.

 

For your HDFC Bank car loan, the LPG/CNG or other special NOCs cost ₹200 each. A commercial/personal use conversion NOC also costs ₹200, and a duplicate NOC or No Due Certificate costs ₹250 per request.

 

If you request a CIBIL report through HDFC Bank for your car loan, a charge of ₹50 will be levied.

 

Drive your dream car today with XPRESS Car Loan!

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