Mulling a car loan to buy your desired vehicle? In the search of a lender that can offer maximum finance at attractive interest rates? The first name that comes to anyone’s mind is HDFC Bank, arguably the leader in the car loan market of India with a share of around 25%. But as cars get launched in big numbers each year, players other than HDFC Bank also look to make their loan offers attractive from time to time.
When one checks the offers, the primary focus remains on the interest rate, isn’t it? HDFC car loan interest rate stands at 11.50%-13.75% per annum. And what about its competitors? Let’s find their interest rate offers and compare them with HDFC’s.
HDFC Bank vs SBI – A Battle Between the Giants
In comparison to HDFC Bank, SBI offers a car loan at a lower rate of 9.20%-9.25% per annum. Clearly, SBI is the winner here with 2.30%-4.50% less interest rate. The per lakh EMI of SBI and HDFC Car Loans is ₹1,619-1,622 and ₹1,739-1,860, respectively. But where HDFC can beat SBI is the loan quantum, which can be even 100% of the on-road price with the former, based on the income, repayment capacity and CIBIL score of an individual. On the other hand, SBI’s loan amount offers are confined to 85% of the on-road price.
What About HDFC Vs ICICI Bank?
The battle is an even keel between HDFC Bank and ICICI as their interest rates are 11.50%-13.75% and 10.75%-12.75%, respectively. The EMI on a 1-lakh loan of HDFC and ICICI is ₹1,739-1,860 and ₹1,699-1,806. When it comes to the loan amount, HDFC Bank offers upto 100% of the on-road price. In comparison, ICICI Bank’s offer is limited to 100% of the ex-showroom price.
Can Axis Bank Compete with HDFC Bank?
Well, the answer to the question is a clear ‘Yes’. Axis Bank’s car loan interest rate ranges from 11%-12% in comparison to HDFC’s 11.50%-13.75%. In terms of per lakh EMI, Axis Bank’s offer is slightly better with a lower value of ₹1,712-1,765 compared to ₹1,739-1,860 of HDFC.The maximum loan amount offered by Axis Bank equals to 85% of the on-road price of the vehicle. On some models, it offers loan upto 95% of the ex-showroom price. And we already know that HDFC can offer upto 100% of the on-road price.
How Competitive Is Kotak Against HDFC Bank?
In terms of interest rate, Kotak is almost at par with HDFC Bank by offering the car loan at 11.50%-13.50% per annum. The per lakh EMI of Kotak and HDFC is ₹1,739-1,846 and ₹1,739-1,860. Kotak Mahindra Bank offers a loan amount of upto 90% of the ex-showroom price of the vehicle.
Does Bank of Baroda Stand Against HDFC Bank?
On the basis of interest rate, Bank of Baroda (BoB) stands head and shoulder above HDFC Bank. Yes, its interest rates are far lower at 8.85%-10.60% per annum, resulting in a lesser per lakh EMI of ₹1,601-1,691. But not in the case of the loan amount as BoB’s offer is upto 85% of the on-road price only.
How Good is Punjab National Bank Compared to HDFC?
Another public lender Punjab National Bank (PNB) has a lower car loan interest rate than HDFC. The New Delhi-headquartered bank offers a loan at 8.70-9.30%, which is sharply lower than HDFC’s. Just like most lenders, PNB provides a loan amount equivalent to 85% of the on-road price.
HDFC Car Loan Interest Rate is competitive among the private lenders. However, it falls behind the public sector counterparts. It’s the quantum of finance, which can go upto 100% of the on-road price, puts HDFC on the driver’s seat despite intense competition in the market.