Head to head · verified 23 Aug 2026
SBI vs HDFC Car Loan: Rates, EMI & Fees
SBI's car loan starts at 8.70% and HDFC's at 9.00% p.a. (verified 23 Aug 2026). On ₹8 lakh over 5 years, SBI's starting rate saves ₹117 a month and ₹6,974 in interest over the loan.
SBI car loans are repo-linked with no foreclosure charge; HDFC is fixed-rate with a foreclosure charge that falls the longer you hold the loan.
SBI EMI · ₹8 lakh
₹16,490
At 8.70%, 5 years
HDFC EMI · ₹8 lakh
₹16,607
At 9.00%, 5 years
RBI raised the repo rate to 5.50% on 7 Oct 2026
Side by Side
All 9 terms we track, from each bank's own rate pages. ✓ marks the better term.
| SBI | HDFC | |
|---|---|---|
| Interest Rate Range | 8.70% – 9.85% p.a. (better) | 9.00% p.a. onwards |
| Rate Type & Benchmark | Floating / Repo-linked (EBR) | Fixed rate |
| Processing Fee | 0.50% (min ₹1,000 · max ₹10,000) | 0.50% – 1.50% (min ₹3,500 · max ₹8,000) + ₹700 doc fee |
| Prepayment / Foreclosure Charges | NIL (better) | 6% (within 12 months) · 5% (months 13–24) · 3% (after 24) |
| Typical Processing Time | 3 – 7 days | 2 – 5 days (better) |
| Maximum Tenure | 7 years | 7 years |
| Maximum Loan Amount | ₹30 L (100% on-road) | ₹1 Cr (100% on-road) (better) |
| Insurance Bundling | Optional (better) | Mandatory in some schemes |
| Govt. Scheme Compatible | No | No |
Sources: sbi.bank.in, hdfc.bank.in. Last verified 23 Aug 2026. We take no commission from either bank.
SBI vs HDFC: EMI Difference
Monthly EMI at each bank's starting rate over 5 years.
| Loan amount | SBI 8.70% | HDFC 9.00% | Difference / month | Over the loan |
|---|---|---|---|---|
| ₹5 lakh | ₹10,307 | ₹10,379 | ₹72 | ₹4,359 |
| ₹8 lakh | ₹16,490 | ₹16,607 | ₹117 | ₹6,974 |
| ₹12 lakh | ₹24,736 | ₹24,910 | ₹174 | ₹10,462 |
Starting rates go to the strongest credit profiles. Compare the rates you are actually offered: the gap can be wider or reverse.
Which Should You Choose?
Choose SBI if…
Best for borrowers who want a PSU bank with repo-linked floating rates and NIL prepayment charges.
- you qualify for the lower starting rate (8.70% – 9.85% p.a.)
- you may prepay or close early (NIL)
- you do not want insurance bundled into the loan
Choose HDFC if…
Best for borrowers at large dealer showrooms where HDFC is a preferred lender and instant approval is available.
- you need the money sooner (2 – 5 days)
- you need a larger loan (₹1 Cr (100% on-road))
Frequently Asked Questions
Which is better, SBI or HDFC for a car loan?
SBI has the lower starting rate (8.70% vs 9.00%). Across the 9 terms we compare, SBI is better on 3 and HDFC on 2. SBI suits borrowers who want a PSU bank with repo-linked floating rates and NIL prepayment charges. HDFC suits borrowers at large dealer showrooms where HDFC is a preferred lender and instant approval is available.
What is the EMI difference between SBI and HDFC on ₹8 lakh?
Over 5 years, the EMI on ₹8 lakh is ₹16,490 at SBI's 8.70% and ₹16,607 at HDFC's 9.00%: a difference of ₹117 a month, or ₹6,974 in total interest.
Which charges less to prepay, SBI or HDFC?
SBI: NIL. HDFC: 6% (within 12 months) · 5% (months 13–24) · 3% (after 24). RBI bars prepayment charges on floating-rate loans to individuals for non-business use.
Which processes a car loan faster?
SBI typically takes 3 – 7 days and HDFC 2 – 5 days, from complete documents to sanction.
Go Further
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Educational information, not financial advice or a loan offer. Rates are as published by each bank on the verification date; your sanctioned rate depends on your credit profile. Confirm the final terms in the Key Facts Statement before you sign.