HDFC is easily among the most popular private banks in the country. It offers various finance options, including auto loan facilities, to its customers. HDFC Bank provides car loans at attractive interest rates that range from 8.80%-10.00% (Rack Interest). HDFC car loans currently being offered to the customers have a loan tenure of up to 84 months. The salient features of HDFC Bank Car Loan include finance of up to 100 percent of the vehicle’s on-road price, relatively lower monthly payments, quick loan disbursement, provision of an optional health cover, and minimal paperwork.
|Interest Rate||8.25% – 14.26% (Avg – 9.40%)|
|Processing Fee||Lower of Rs. 10,000 or 0.4% of car loan sanctioned|
|Foreclosure Charges||3% to 6% depending on loan tenure (no foreclosure for loans disbursed <6 months ago)|
|Documentation Fees||Rs. 600 each time|
|Penalty for Late Payment||2% each month|
|Financing Quantum||up to 100% depending on customer profile|
Like every public sector and private sector bank, even HDFC has minimum eligibility criteria that every car loan applicant needs to meet to facilitate successful processing of the loan application. The HDFC bank has defined a clear policy of requirements for all categories of loan applicants. The eligibility of the HDFC bank car loan applicant depends upon the following criteria:-
|Salaried Individuals||Aged between 21 years and 60 years, Employed for a minimum of 2 years with at least 1 year with the current employer, Earn at least Rs.3 lakh p.a., Have a telephone/post-paid mobile, Should be in the business of trading, manufacturing, or services|
|Self-Employed Individuals (Sole Proprietorship)||Aged between 21 years and 65 years, Should have been in business for at least 2 years, Have an income of at least Rs.3 lakh per annum|
|Self-Employed Individuals (Partnership Firms)||Self-employed partners in the manufacturing, trading, or services business should have a turnover of at least Rs.3 lakh per annum|
|Self-Employed Individuals (Private Limited Companies)||Owners of private companies in the manufacturing, trading or services business should have a minimum annual income of Rs.3 lakh|
|Self-Employed Individuals (Public Limited Companies)||Directors in public limited firms in the manufacturing, trading or services business should have earnings of at least Rs.3 lakh per annum|
In case you have been thinking of purchasing a car in order to support your lifestyle but have not been able to have enough savings for the same, you can still bring your dream car home by opting for a car finance scheme at HDFC. Being one of the most popular banks in the country, HDFC bank offers car loans at pretty attractive interest rates.
Below are the salient features of HDFC Bank new car loan-
Other than offering new car finance options, HDFC Bank even provides used car loans in case you wish to purchase a second-hand car. It must be noted here that getting a used car loan isn’t as easy as getting a new one but one can still easily obtain finance from HDFC bank for buying a used car in case he meets the eligibility criteria. HDFC bank even has a tie-up with many used car dealers across the country. Below, we have listed all the HDFC pre-owned car loan benefits and features:
In case you have already paid your car loan instalments on time for a minimum of 9 months, you can opt for a top-up on your existing car loan with HDFC Bank’s Loan against Car. This loan scheme enables the borrower to get an additional loan to the extent of your original loan amount, at a competitive rate of interest. HDFC Loan against Car comes with the following benefits and features:
HDFC Bank Car Loan EMI is the fixed amount that the borrower needs to pay to the bank every month as partial repayment of your car loan. Using a car loan EMI calculator, the borrower can get to know the EMI he’ll have to pay for a certain amount. This can help him plan his finance better and, if required, even adjust the sum he plans to borrow. The free tool calculates the EMI based on the following factors –
|Factors Determining EMI|
|Rate of interest||This has a direct relation with your EMI. Higher the rate of interest, higher will be the EMI.|
|Loan tenure||Higher the loan tenure, lower will be the EMI. The vice versa also holds true.|
|Loan Amount||Of course, another factor that has a direct relation with your EMI is the loan amount. More the amount you borrow, higher will be the EMI.|
A: Normally, HDFC car loan tenure ranges from 3 to 7 years. However, it does vary from one model to another. Also, for premium cars, the loan tenure is restricted to 3 years maximum.
A: One can borrow a loan of up to 3 times of his annual income in case you are a salaried person. However, in case you are a self-employed professional, this amount rises to at 6 times your annual income.
A: Yes, you can pre-pay the HDFC Car loan but only after a period of six months from availing of the car loan. HDFC Bank charges a pre-payment fee on the outstanding loan amount in case you wish to pay the loan before the tenure.
A: Mostly, a guarantor isn’t required for getting the HDFC Bank car loan application approved. However, in case you fail to meet the eligibility criteria, you need to have a guarantor that meets the eligibility requirements.
A: No, your car cannot be sold before the loan is paid off. An NOC from the loan provider is needed before you can sell your car, which has an outstanding loan.
A: HDFC Bank offers two EMI options – Step-up EMI and Balloon EMI. The step-up EMI option allows you to gradually increase the EMI amount over the loan tenure. On the other hand, the balloon EMI option lets you pay lower EMI amounts during the initial tenure and a higher lump sum amount at the end of the loan tenure.
A: Yes, you can get a top-up loan on your existing HDFC Bank car loan only if you are an existing customer of the bank.
A: There is no restriction on the type of car that can be financed by HDFC Bank car loan. Financing is offered for most of the passenger cars and multi-utility vehicles manufactured by top automobile makers in India.