Federal Bank vs HDFC Bank vs Mahindra Finance at a glance
| Detail | Federal Bank | HDFC Bank | Mahindra Finance |
|---|---|---|---|
| Loan provider type | Private bank | Private bank | NBFC |
| Legal name | Federal Bank | HDFC Bank | Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) |
| Vehicle loans with a published rate | Car loan, Two-wheeler loan, Used car loan, Commercial vehicle loan | Car loan, Two-wheeler loan, Used car loan | Car loan, Used car loan, Three-wheeler loan, Tractor loan, Commercial vehicle loan |
| Car loan: published rate | 7.90% - 9.00% | 7.60% - 14.00%rates given to customers, Apr-Jun 2026; average 8.63%; rack rate from 9% onwards | 8% - 25% p.a.policy range, new assets |
| Car loan: maximum tenure | 84 months | Up to 7 years | 5 years |
| Used car loan: published rate | 10.15% - 14.00% | 9.50% - 17.00%rates given to customers, Apr-Jun 2026; average 13.51%; rack rate from 11.25% | 8% - 25% p.a.policy range, pre-owned assets |
| Used car loan: maximum tenure | 60 months | Not published | 5 years |
| Official website | federal.bank.in | hdfc.bank.in | mahindrafinance.com |
Federal Bank vs HDFC Bank vs Mahindra Finance car loan: rate, fees and tenure
Starting car loan rates as published: Federal Bank from 7.90%, HDFC Bank from 7.60% and Mahindra Finance from 8%. HDFC Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Federal Bank lists the longer maximum tenure (84 months).
| Detail | Federal Bank | HDFC Bank | Mahindra Finance |
|---|---|---|---|
| Product | Federal Personal Car Loan (new) | HDFC Bank New Car Loan | Car Loan (also separate Utility Vehicle Loan) |
| Published rate | 7.90% - 9.00% | 7.60% - 14.00%rates given to customers, Apr-Jun 2026; average 8.63%; rack rate from 9% onwards | 8% - 25% p.a.policy range, new assets |
| Rate basis | Fixed (product page also lists 10.15% floating, repo-linked) | Not published | Policy allows fixed, floating or hybrid; car loan FAQ quotes on flat-rate basis |
| Maximum tenure | 84 months | Up to 7 years | 5 years |
| Maximum funding | Up to 95% of on-road price | Up to 100% (profile-based) | Up to 100% of ex-showroom value |
| Processing fee | 1% of loan (min ₹1,000, max ₹50,000) | Up to 0.5% of loan (min Rs 3,500, max Rs 8,000) | Up to 2% of sanction amount (stated for non-Mahindra cars); not stated for Mahindra cars |
| Pre-closure / prepayment | Nil | Full pre-closure: 6% of principal within 1 year, 5% in months 13-24, 3% after 24 months (loans from 1 Dec 2025) | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) |
| Other terms published |
| Not published |
|
| Official source | federal.bank.in federal.bank.in federal.bank.in | hdfc.bank.in | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com |
EMI illustration: ₹10 lakh over 60 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Federal Bank | 7.90% | ₹20,229 | ₹2,13,714 | ₹12,13,714 |
| HDFC Bank | 7.60% | ₹20,086 | ₹2,05,130 | ₹12,05,130 |
| Mahindra Finance | 8% | ₹20,276 | ₹2,16,584 | ₹12,16,584 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (60 months)
| Loan amount | Federal Bank (7.90%) | HDFC Bank (7.60%) | Mahindra Finance (8%) |
|---|---|---|---|
| ₹5 lakh | ₹10,114 | ₹10,043 | ₹10,138 |
| ₹10 lakh | ₹20,229 | ₹20,086 | ₹20,276 |
| ₹15 lakh | ₹30,343 | ₹30,128 | ₹30,415 |
| ₹20 lakh | ₹40,457 | ₹40,171 | ₹40,553 |
Read the full guide: Car loan · EMI calculator
Federal Bank vs HDFC Bank vs Mahindra Finance two-wheeler loan: rate, fees and tenure
Starting two-wheeler loan rates as published: Federal Bank from 12.60% and HDFC Bank from 9.99%. HDFC Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Mahindra Finance does not publish a two-wheeler loan rate on its website, so none is shown.
| Detail | Federal Bank | HDFC Bank | Mahindra Finance |
|---|---|---|---|
| Product | Federal Personal Car Loan (new two-wheeler) | HDFC Bank Two Wheeler Loan | Not published |
| Published rate | 12.60% - 16.00% | 9.99% - 25.02%rates given to customers, Apr-Jun 2026; average 18.22%; rack rate from 14.50% | Not published |
| Rate basis | Fixed | Fixed (floating not offered) | Not published |
| Maximum tenure | 60 months | Not published | Not published |
| Processing fee | 2.50% (min ₹2,500) | Up to 2.5% of loan, plus documentation charges up to 2.25% | Not published |
| Pre-closure / prepayment | Nil | 5% of principal outstanding up to 24 months, 3% after | Not published |
| Official source | federal.bank.in federal.bank.in federal.bank.in | hdfc.bank.in | Not published |
EMI illustration: ₹1 lakh over 36 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Federal Bank | 12.60% | ₹3,350 | ₹20,606 | ₹1,20,606 |
| HDFC Bank | 9.99% | ₹3,226 | ₹16,145 | ₹1,16,145 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (36 months)
| Loan amount | Federal Bank (12.60%) | HDFC Bank (9.99%) |
|---|---|---|
| ₹0.5 lakh | ₹1,675 | ₹1,613 |
| ₹1 lakh | ₹3,350 | ₹3,226 |
| ₹1.5 lakh | ₹5,025 | ₹4,839 |
Read the full guide: Two-wheeler loan · EMI calculator
Federal Bank vs HDFC Bank vs Mahindra Finance used car loan: rate, fees and tenure
Starting used car loan rates as published: Federal Bank from 10.15%, HDFC Bank from 9.50% and Mahindra Finance from 8%. Mahindra Finance is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered.
| Detail | Federal Bank | HDFC Bank | Mahindra Finance |
|---|---|---|---|
| Product | Loan for Pre-Owned Cars | HDFC Bank Pre-Owned Car Loan | Used Car Loan |
| Published rate | 10.15% - 14.00% | 9.50% - 17.00%rates given to customers, Apr-Jun 2026; average 13.51%; rack rate from 11.25% | 8% - 25% p.a.policy range, pre-owned assets |
| Rate basis | Fixed (product page also lists 15.05% floating) | Not published | Not published |
| Maximum tenure | 60 months | Not published | 5 years |
| Maximum funding | Up to 90% of vehicle value | Not published | Up to 90% of car value |
| Processing fee | 1% of loan (min ₹5,000, max ₹2,50,000) | Up to 1% of loan (min Rs 3,500, max Rs 9,000) | Up to 2% of sanction amount |
| Pre-closure / prepayment | Nil | Full pre-closure: 6% within 1 year, 5% in months 13-24, 3% after 24 months | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) |
| Other terms published | Not published | Not published |
|
| Official source | federal.bank.in federal.bank.in federal.bank.in | hdfc.bank.in | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com |
EMI illustration: ₹5 lakh over 48 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Federal Bank | 10.15% | ₹12,717 | ₹1,10,432 | ₹6,10,432 |
| HDFC Bank | 9.50% | ₹12,562 | ₹1,02,955 | ₹6,02,955 |
| Mahindra Finance | 8% | ₹12,206 | ₹85,910 | ₹5,85,910 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (48 months)
| Loan amount | Federal Bank (10.15%) | HDFC Bank (9.50%) | Mahindra Finance (8%) |
|---|---|---|---|
| ₹3 lakh | ₹7,630 | ₹7,537 | ₹7,324 |
| ₹5 lakh | ₹12,717 | ₹12,562 | ₹12,206 |
| ₹8 lakh | ₹20,348 | ₹20,099 | ₹19,530 |
Read the full guide: Used car loan · EMI calculator
Federal Bank vs HDFC Bank vs Mahindra Finance three-wheeler loan: rate, fees and tenure
Only Mahindra Finance publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Federal Bank and HDFC Bank do not publish a three-wheeler loan rate on their website, so none is shown.
| Detail | Federal Bank | HDFC Bank | Mahindra Finance |
|---|---|---|---|
| Product | Not published | Not published | Three-Wheeler Loan |
| Published rate | Not published | Not published | 8% - 25% p.a.policy range, 3-wheelers |
| Maximum tenure | Not published | Not published | 4 years |
| Maximum funding | Not published | Not published | Based on vehicle and customer profile |
| Pre-closure / prepayment | Not published | Not published | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) |
| Other terms published | Not published | Not published |
|
| Official source | Not published | Not published | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com |
Read the full guide: Three-wheeler loan
Federal Bank vs HDFC Bank vs Mahindra Finance tractor loan: rate, fees and tenure
Only Mahindra Finance publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Federal Bank and HDFC Bank do not publish a tractor loan rate on their website, so none is shown.
| Detail | Federal Bank | HDFC Bank | Mahindra Finance |
|---|---|---|---|
| Product | Not published | HDFC Bank Tractor Loan | Tractor Loan |
| Published rate | Not published | Not published | 8% - 25% p.a.policy range, new/pre-owned assets |
| Maximum tenure | Not published | Not published | 5 years (6-60 months) |
| Maximum funding | Not published | Not published | No fixed minimum or maximum amount |
| Processing fee | Not published | Not published | Up to 2% of sanction amount (farm equipment) |
| Pre-closure / prepayment | Not published | Not published | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) |
| Other terms published | Not published | Not published |
|
| Official source | Not published | hdfc.bank.in | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com |
Read the full guide: Tractor loan
Federal Bank vs HDFC Bank vs Mahindra Finance commercial vehicle loan: rate, fees and tenure
Starting commercial vehicle loan rates as published: Federal Bank from 7.50% and Mahindra Finance from 8%. Federal Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. HDFC Bank does not publish a commercial vehicle loan rate on its website, so none is shown.
| Detail | Federal Bank | HDFC Bank | Mahindra Finance |
|---|---|---|---|
| Product | Commercial Vehicles & Construction Equipment Finance | HDFC Bank Commercial Vehicle Loan | Commercial Vehicle Loan |
| Published rate | 7.50% - 15% | Not published | 8% - 25% p.a.policy range, new/pre-owned assets |
| Rate basis | Not published | Not published | Monthly reducing balance (per product page) |
| Maximum tenure | Not published | Not published | 60 months new; 36 months used |
| Maximum funding | Not published | Loan up to Rs 3 crore | Not published |
| Processing fee | 0.25% + GST (product page); charges schedule lists 2% | Not published | Up to 2% of sanction amount |
| Pre-closure / prepayment | Up to 3% | Not published | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) |
| Other terms published |
|
|
|
| Official source | federal.bank.in federal.bank.in | hdfc.bank.in | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com |
EMI illustration: ₹15 lakh over 48 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Federal Bank | 7.50% | ₹36,268 | ₹2,40,881 | ₹17,40,881 |
| Mahindra Finance | 8% | ₹36,619 | ₹2,57,730 | ₹17,57,730 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (48 months)
| Loan amount | Federal Bank (7.50%) | Mahindra Finance (8%) |
|---|---|---|
| ₹10 lakh | ₹24,179 | ₹24,413 |
| ₹15 lakh | ₹36,268 | ₹36,619 |
| ₹25 lakh | ₹60,447 | ₹61,032 |
Read the full guide: Commercial vehicle loan
Which is better: Federal Bank, HDFC Bank or Mahindra Finance?
No loan provider is best for everyone. This is how the published figures split, product by product.
- Car loan, lower starting rate: HDFC Bank (7.60%) versus 7.90% at Federal Bank and 8% at Mahindra Finance.
- Used car loan, lower starting rate: Mahindra Finance (8%) versus 10.15% at Federal Bank and 9.50% at HDFC Bank.
- Car loan, longer maximum tenure: Federal Bank (84 months). A longer tenure lowers the EMI but raises total interest.
Pick on total cost, not the headline rate: ask each loan provider for the Key Fact Statement and compare the APR and total repayable amount. A low rate with a high processing fee can cost more than a slightly higher rate with no fee.
Bank type and how each loan provider sets its rate
Federal Bank and HDFC Bank are private banks and Mahindra Finance is a nbfc.
What the loan providers' own pages say about how their rates are set:
- Federal Bank car loan: Fixed (product page also lists 10.15% floating, repo-linked).
- Federal Bank two-wheeler loan: Fixed.
- Federal Bank used car loan: Fixed (product page also lists 15.05% floating).
- HDFC Bank two-wheeler loan: Fixed (floating not offered).
- Mahindra Finance car loan: Policy allows fixed, floating or hybrid; car loan FAQ quotes on flat-rate basis.
- Mahindra Finance commercial vehicle loan: Monthly reducing balance (per product page).
Banks and non-banking finance companies (NBFCs) publish rates in different ways: some give a range, some only a starting rate and some only a maximum. That is why this page compares like with like and marks every gap as not published instead of guessing.
About Federal Bank, HDFC Bank and Mahindra Finance
Federal Bank
Private bank
Kerala-based private bank whose Personal Car Loan covers new cars, used cars and new two-wheelers on fixed rates, with no prepayment charges and free personal accident cover.
Lowest published starting rate: 7.50% (Commercial vehicle loan)
HDFC Bank
Private bank
Large private-sector car financier offering new and pre-owned car, two-wheeler, MSME commercial vehicle and tractor loans with up to 100% funding on select profiles.
Lowest published starting rate: 7.60% (Car loan)
Mahindra Finance
NBFC · Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)
Mahindra Group vehicle financier focused on rural and semi-urban India; finances Mahindra UVs/tractors and other brands
Lowest published starting rate: 8% (Car loan)
What to check before you choose a vehicle loan
- Ask for the Key Fact Statement (KFS). RBI requires loan providers to give you one before you sign, showing the interest rate, all fees, the APR and the total amount you will repay.
- Compare APR, not the headline rate. Processing fee, documentation charges and insurance change the real cost.
- Ask about pre-closure charges. Fixed-rate vehicle loans often carry charges for paying early; floating-rate loans to individuals cannot.
- Check what is bundled. Insurance, extended warranty or accessories added to the loan raise the amount you pay interest on. You are free to buy insurance elsewhere.
- Confirm the hypothecation. The loan provider's name is noted on the registration certificate. After the last EMI, collect the NOC and have it removed at the RTO.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources, method and last check
Every figure above comes from the loan provider's own website. We checked them on 4 October 2026 and list the pages used.
- Federal Bank: federal.bank.in/retail-loans-interest-rates · federal.bank.in/personal-car-loan · federal.bank.in/car-loan-interest-rate · federal.bank.in/documents/d/guest/retail-loan-charges-07092926 · federal.bank.in/pre-owned-car-loan · federal.bank.in/commercial-vehicles
- HDFC Bank: hdfc.bank.in/car-loan/interest-rates-and-charges · hdfc.bank.in/two-wheeler-loan/interest-rates-and-charges · hdfc.bank.in/pre-owned-car-loan/interest-rates-and-charges · hdfc.bank.in/agri-banking/rural-loans/tractor-loan · hdfc.bank.in/msme-banking/msme-vehicle-loan/commercial-vehicle-loan
- Mahindra Finance: mahindrafinance.com/loans/car-loan · media.mahindrafinance.com/2025/02/Interest-Rate-Policy_Updated_21-July26_clean.pdf · mahindrafinance.com/loans/retail-loan-fees-and-charges · mahindrafinance.com/loans/used-car-loan · mahindrafinance.com/loans/three-wheeler-loan · mahindrafinance.com/loans/tractor-loan
Method: we list only figures we could find on the loan provider's official pages. A blank means the loan provider does not publish that figure, and we never estimate one. Rankings use the published starting rate and published maximum tenure only. Read our editorial policy, how we make money and tell us about an error.
More loan provider comparisons
Federal Bank compared with other loan providers
HDFC Bank compared with other loan providers
Mahindra Finance compared with other loan providers
Head-to-head pages for these three loan providers
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Frequently asked questions
Which is better for a car loan: Federal Bank, HDFC Bank or Mahindra Finance?
HDFC Bank has the lowest published starting car loan rate at 7.60%, against 7.90% at Federal Bank and 8% at Mahindra Finance. Federal Bank allows the longer maximum tenure (84 months). A starting rate is the best case, not a typical offer, so confirm the annual percentage rate (APR) and total repayable amount in each loan provider's Key Fact Statement. Figures are as published on the loan providers' own websites and checked 4 October 2026. The better choice depends on your profile, the loan amount and the fees in your offer letter.
Which has the lower car loan interest rate: Federal Bank, HDFC Bank or Mahindra Finance?
HDFC Bank has the lower published starting rate. Published starting rates: Federal Bank 7.90%, HDFC Bank 7.60% and Mahindra Finance 8% (checked 4 October 2026). Your actual rate depends on your credit profile and the loan provider's approval.
What is the processing fee on a car loan at Federal Bank, HDFC Bank and Mahindra Finance?
Federal Bank: 1% of loan (min ₹1,000, max ₹50,000). HDFC Bank: Up to 0.5% of loan (min Rs 3,500, max Rs 8,000). Mahindra Finance: Up to 2% of sanction amount (stated for non-Mahindra cars); not stated for Mahindra cars. Fees can change and GST is usually extra, so check the Key Fact Statement.
What is the maximum car loan tenure at Federal Bank, HDFC Bank and Mahindra Finance?
Federal Bank: 84 months. HDFC Bank: up to 7 years. Mahindra Finance: 5 years.
What is the EMI on a ₹10 lakh car loan at Federal Bank, HDFC Bank and Mahindra Finance?
Over 60 months at each loan provider's lowest published rate: Federal Bank about ₹20,229 a month at 7.90%; HDFC Bank about ₹20,086 a month at 7.60%; Mahindra Finance about ₹20,276 a month at 8%. This is an illustration that leaves out fees, GST and insurance. Your offered rate may be higher.
How much of the vehicle price can I borrow on a car loan from Federal Bank, HDFC Bank and Mahindra Finance?
Federal Bank: Up to 95% of on-road price. HDFC Bank: Up to 100% (profile-based). Mahindra Finance: Up to 100% of ex-showroom value. Funding is usually profile-based, so the loan provider decides the final amount.
What other terms do Federal Bank, HDFC Bank and Mahindra Finance publish for a car loan?
Federal Bank: Free personal accident cover up to ₹10 lakh; No-income-document scheme. Mahindra Finance: Finances most passenger and multi-utility vehicles across brands; No collateral security required. Check each loan provider's page for eligibility and documents before you apply.
Can I prepay or foreclose a car loan early at Federal Bank, HDFC Bank and Mahindra Finance?
Federal Bank: Nil. HDFC Bank: Full pre-closure: 6% of principal within 1 year, 5% in months 13-24, 3% after 24 months (loans from 1 Dec 2025). Mahindra Finance: 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months). Floating-rate loans to individuals cannot carry pre-closure charges; fixed-rate loans often do.
Which vehicle loans do Federal Bank, HDFC Bank and Mahindra Finance publish rates for?
Federal Bank: car loan, two-wheeler loan, used car loan, commercial vehicle loan. HDFC Bank: car loan, two-wheeler loan, used car loan. Mahindra Finance: car loan, used car loan, three-wheeler loan, tractor loan, commercial vehicle loan. Based on each loan provider's own website, checked 4 October 2026.
Are the rates on this page the rate I will get?
No. They are the rates the loan providers publish, usually a range or a starting rate. Your approved rate depends on your credit score, income, loan amount, tenure and vehicle. Always read the Key Fact Statement before you sign.
Does KhatuLoans lend money or charge for this comparison?
KhatuLoans is not a loan provider. The loan provider decides approval, rate and terms. Our comparisons are free to read, and we are not paid by the loan providers named here to rank them. See how we make money on our advertiser disclosure page.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and prices change; always confirm with the loan provider and dealer. Read our editorial policy and how we make money.