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Loan Against Car - Interest Rates and Charges

Description of charges Amount to be Paid
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 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).
Documentation charges ₹700 per case (charges not to be refunded in case of case cancellation.)
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 1% of the loan amount subject to a minimum of ₹3,500 and a maximum of ₹9,000.

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
LPG / CNG NOC / Inter State / other special NOC ₹200 per NOC
Bureau charges (only on request) ₹ 50
Payment return charges ₹450 per instance
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 11.25% onwards depending on loan amount, tenure & CIBIL score
Car Valuation/Asset Verification Charges ₹ 750/- per case
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.
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
It is also advised that the customers should refrain from and dealings in cash with the Bank's Direct Sales associates. Borrowers should also not make any payments in cash/bearer cheque or kind in connection with the loan, to the executive, dealing with the borrower for purpose of the loan.


# 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.
 

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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