IDFC FIRST Bank vs. HDFC Bank: Owning a car is a dream for many. If you want to buy your dream car but can’t because of financial constraints, don’t worry. Several banks offer car loans at low interest rates. A key advantage of these banks is that you can secure a loan with minimal processing fees, and the EMI burden remains manageable. Both IDFC FIRST Bank and HDFC Bank offer auto loans at competitive interest rates. Let’s explore the details.
HDFC Bank Interest Rates
HDFC Bank is the largest private-sector bank in the country. It offers loans for new car purchases at annual interest rates ranging from 8.95% to 11%. Additionally, through its ‘Express Car Loan’ and special schemes tailored for select customers, the bank offers rates starting at 8.25% (subject to terms and conditions). For used cars, the interest rate is 9.56%. HDFC Bank provides financing of up to 100% of the vehicle’s value for certain car models, with a repayment tenure of up to 7 years. Processing fees are charged based on the loan amount.
IDFC FIRST Bank Interest Rates
At IDFC FIRST Bank, interest rates for car loans range from 8.99% to 11.50% per annum. Depending on the customer’s credit profile and CIBIL score, the bank offers both fixed and floating interest rate options. For used cars, the bank provides loans at an annual interest rate of 11.99%.
Furthermore, the bank offers financing for up to 100% of the car’s on-road price. A key feature is that the loan repayment tenure is set at 10 years, which significantly lowers your monthly EMI. The maximum loan amount can be up to ₹1 crore. As for processing fees, the bank may charge up to a maximum of ₹10,000 for a new car loan.
What is prepayment?
It should be noted that no foreclosure charges will be levied if the loan is closed ahead of schedule. In certain cases—specifically for fixed-rate loans—you might be required to pay an amount equivalent to 5% of the outstanding balance, plus GST. However, the bank also offers the option of zero foreclosure charges.