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Loan Against Car - Interest Rates and Charges

Description of Charges Amount to be Paid
Premature Closure Charges (For Full Payment) 6% of principal outstanding for pre-closures within 1 year
5% of principal outstanding for pre-closures within 13 to 24 months from 1st EMI
3% of principal outstanding for pre-closures post 24 months from 1st EMI
Premature Closure Charges (For Part Payment) Part payment will be allowed twice only during loan tenure.
Part payment is allowed only once a year.
At any point of time, part payment will not increase beyond 25% of Principal Outstanding.
5% on the part payment amount in case part prepayment is within 24 months from 1st EMI
3% on the part payment amount in case part prepayment is post 24 months from 1st EMI
Stamp Duty (non-refundable) At actuals
Delayed Instalment payment charge 18% p.a. (1.50% per month) plus applicable government taxes on overdue instalment amount
Processing fees (non-refundable) 0.5% of Loan Amount subject to minimum of ₹3,500 and maximum of ₹8,000
Documentation Charges ₹650 per case
Collateral Charges Registration Certificate (RC) Collection Fees
RTO Transfer Charges At Actuals
Repayment Mode change charge ₹500 per instance
Loan cancellation Loan cancellation in the event of cancellation, interest charges from the date of disbursement till the date of cancellation of loan will be borne by the customer. Processing Fee, Stamp Duty, Documentation, Valuation and RTO charges (Used Car Purchase/Refinance) are non-refundable charges and would not be waived/refunded in case of loan cancellation
Legal, repossession & incidental charges At actuals
Duplicate No Due Certificate/NOC ₹250 per instance
Loan re-schedulement charges/rebooking charges ₹400
LPG/CNG NOC/Other Special NOC ₹200 per NOC
Credit Report Charges (only on request) ₹50
Amortisation Schedule Charges ₹50 per schedule for physical copy. Customer can also download the schedule from the link free of cost
Commercial/Personal Use NOC ₹200 per NOC
Rack interest rate 13.75% p.a. onwards
Car Valuation/Asset Verification Charges ₹750 per case
Payment Return Charges ₹450 per instance


Inter-State NOC:
 

  • A refundable security deposit (non-interest bearing) of ₹5,000 will be required, and it will be the borrower's responsibility to furnish the transferred Registration Certificate to the bank. Additionally, the NOC charge will amount to ₹500.
  • Customers are advised to avoid any cash transactions with the Bank's Direct Sales associates. Borrowers should refrain from making any payments in cash, bearer cheque or kind to the executive handling their loan application.
  • Please note that foreclosure, part-payment, processing fees, valuation, documentation, collateral charges, and cheque/SI/ECS return charges do not include government taxes. Government taxes and other applicable levies will be charged additionally. Promotional offers will become invalid if third-party payments are made towards foreclosure, and standard charges will apply.
  • ** Collateral charges/PDD collection charges will be refunded in case of loan cancellation.

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

 

Bank IRR      
Product Min IRR Max IRR Avg IRR
Used car loan and loan against car 9.70% 17.70% 13.42%


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

APR      
Product Min APR Max APR Avg APR
Used car loan and loan against car 9.73% 94.48% 13.90%

 

  • Click here to read more about the HDFC Bank Loan Against Car
  • Click here for the most important Terms & Conditions

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

Frequently Asked Questions

No, HDFC Bank does not levy any hidden charges. The Bank mentions all the applicable charges and expenses associated with obtaining the loan transparently, in the loan agreement.

For HDFC Bank's Loan Against Car, the typical fees involved may include:

1.     Processing Fee: A one-time fee charged for processing your loan application.

2.     Prepayment Charges: If you choose to prepay your loan before the end of the tenure, there may be prepayment charges.

3.     Late Payment Fees: Charged if you fail to make your EMI payments on time.

4.     Documentation Charges: Fees for the paperwork and documentation required for the loan.

5.     Stamp Duty: Charges for stamping the loan agreement, as per applicable laws.

6.     Valuation Charges: Fees for assessing the value of your car.

7.     Insurance Charges: If you are required to take insurance for the vehicle.

8.     EMI Bounce Charges: If your EMI payment bounces due to insufficient funds.

To avoid extra fees on an HDFC Bank Loan Against Car, ensure timely EMI payments to prevent late payment fees. Understand and adhere to prepayment conditions to avoid prepayment charges. Keep all required documents ready to avoid documentation charges. Maintain sufficient funds to avoid EMI bounce charges.

For HDFC Bank Loan Against Car, if you close the loan within 1 year, you pay 6% of the principal outstanding. Between 13 to 24 months, it is 5%. After 24 months, it is 3% of the principal outstanding. Government taxes apply in addition.

Under HDFC Bank Loan Against Car, part payment is allowed only once a year and only twice during the loan tenure. It cannot exceed 25% of the principal outstanding. Charges are 5% within 24 months and 3% after 24 months, plus applicable taxes.

For an HDFC Bank Loan Against Car, you pay a non-refundable processing fee of up to 1% of the loan amount. The minimum is ₹3,500 and the maximum is ₹9,000. Government taxes will be applicable in addition to this fee.

For HDFC Bank Loan Against Car, documentation charges are ₹650 per case. Registration Certificate (RC) collection charges are ₹600, which are refundable in case the loan is cancelled. These fees do not include government taxes, which are charged separately.

In HDFC Bank Loan Against Car, delayed instalments attract a penalty interest of 18% per annum (1.5% per month) on the overdue amount. Government taxes will also be charged in addition to this penalty rate.

For HDFC Bank Loan Against Car, LPG/CNG and commercial or personal use, NOCs cost ₹200 each. An inter-state NOC requires a ₹500 charge and a refundable ₹5,000 security deposit, which is returned once you submit the transferred Registration Certificate.

HDFC Bank Loan Against Car cancellation will require you to pay interest from disbursement to cancellation date. Processing fees, documentation, valuation, stamp duty, and RTO charges are non-refundable even if the loan is cancelled.

If you request changes to your HDFC Bank Loan Against Car, re-schedulement or rebooking charges of ₹400 will apply. If RC changes are involved, an additional refundable ₹5,000 security deposit is required until the updated RC is submitted.

For HDFC Bank Loan Against Car, car valuation or asset verification charges are ₹750 per case. These charges are exclusive of government taxes, which are applicable additionally as per regulations.

For HDFC Bank Loan Against Car, a duplicate NOC costs ₹250 per instance, CIBIL report is ₹50 on request, repayment mode change is ₹500, amortisation schedule (physical copy) is ₹50, and payment return charge is ₹450 per instance. Taxes apply as applicable.

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