Everyone aspires to own their dream car, but when it comes to taking out a car loan, the biggest dilemma is choosing which bank to borrow from to minimise the EMI burden and keep the process simple. If you’re planning to buy a new or used car this festive and wedding season, let’s explore the attractive offers IDFC First Bank and HDFC Bank are offering on auto loans.
HDFC Bank Car Loan Interest Rates
HDFC Bank, one of the country’s largest private banks, offers attractive rates on new cars. Generally, HDFC Bank car loan interest rates range from 8.95 per cent to 11.00 per cent per annum. However, under its special ‘Express Car Loan’ scheme and for select pre-approved customers, the bank also offers loans starting at 8.25 per cent per annum. However, several terms and conditions apply. Interest rates for used cars start at 9.56 per cent. HDFC Bank offers loans up to 100 per cent of the on-road price on select models, with a maximum repayment tenure of 7 years. Processing fees at HDFC Bank depend on the loan amount.
IDFC First Bank Car Loan Interest Rates
IDFC First Bank offers interest rates ranging from 8.99 per cent to 11.50 per cent per annum on new car loans. The bank offers both fixed and floating interest rates based on customers’ credit profiles and CIBIL scores. If you’re looking to purchase a used car, IDFC First Bank’s interest rates start at 11.99 per cent per annum. The bank also finances up to 100 per cent of the on-road price of a new car. Most importantly, the maximum loan repayment period is 10 years (120 months), significantly reducing your monthly EMI. The maximum loan amount can be up to Rs 2 crore. For a new car, the bank charges up to Rs 10,000 (or more, depending on the loan amount) as a processing fee.
Prepayment or foreclosure charges
If you want to close your loan early, IDFC First Bank charges no foreclosure fees on floating-rate loans, while fixed-rate loans may incur a fee of 5 per cent (+GST) of the outstanding principal. HDFC Bank, on the other hand, offers zero foreclosure charges on several of its Express Car Loan offers (subject to terms and conditions).
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