HDFC Bank Car Loan
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HDFC Bank Car Loan

Team CARS24
editor

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 Rate8.25% – 14.26% (Avg – 9.40%)
Processing FeeLower of Rs. 10,000 or 0.4% of car loan sanctioned
Foreclosure Charges3% to 6% depending on loan tenure (no foreclosure for loans disbursed <6 months ago)
Documentation FeesRs. 600 each time
Penalty for Late Payment2% each month
Financing Quantumup to 100% depending on customer profile

HDFC Bank Car Loan Eligibility Criteria

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 IndividualsAged 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

HDFC Bank Car Loan Benefits and Features

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.

HDFC Bank New Car Loan

Below are the salient features of HDFC Bank new car loan-

  • The applicant can apply for finance of up to 100% of the on-road price of a new car. However, it should be mentioned here that this option is not available for purchase of all cars.
  • One can choose HDRF car loans for purchase of a wide range of cars and multi-utility vehicles in India.
  • The borrower can repay the loan through any of the multiple repayment options, ranging from 12 months up to a maximum of 84 months.
  • The borrower can take a car loan of up to six times of his annual income.
  • One can check his eligibility for HDFC car loan in less than a minute
  • HDFC offers fast approval of car loans, with it advertising a loan approval time of just 30 minutes.
  • There are several EMI options on each and every type of HDFC car loan.
  • One can even fast-track his or her car loan by opting for the HDFC Car loan scheme best suited for him or her.
  • HDFC new car loan is available at attractive interest rates ranging from 8.25% – 14.26% (Avg – 9.40%)
  • HDFC offers special car loan schemes to its existing customers.
  • HDFC offers new car loans of up to Rs. 1.5 Cr.

HDFC Bank Used 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:

  • HDFC Bank provides loan for buying a used car of any make manufactured in India but not more than 10 years old at time time of applying for finance.
  • HDFC Bank provides finance of up to 80 per cent of the value of the car.
  • Many options for repayment tenures, ranging from 12 to 60 months.
  • One can borrow a car loan can be availed up to 3 – 6 times of his or her annual income.
  • One can fast-track his or her car loan from HDFC Bank by choosing from different plan options.
  • One can get an additional loan on his current HDFC Bank Auto loan
  • Special privileges for HDFC bank account holders
  • HDFC offers used car loans up to Rs. 50 Lakh

HDFC Bank Loan Against Car

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:

  • Finance option of up to 100% of the original loan value of the car available
  • Car valuation is not mandatory.
  • A wide range of approved models and manufacturers are considered by HDFC Bank
  • One can benefit from quick and hassle-free disbursal of the additional loan amount.

HDFC Bank Car Loan EMI Calculator

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 tenureHigher the loan tenure, lower will be the EMI. The vice versa also holds true.
Loan AmountOf 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.

FAQs

Q: What can be tenure option for a HDFC Bank car loan?

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.

Q: How much loan amount am I eligible for?

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.

Q: Is there an option to pre-pay my loan amount?

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.

Q: Do I need a guarantor for my HDFC Bank car loan application?

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.

Q: Can I sell my car before I repay the loan amount?

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.

Q: What are the EMI options available on HDFC Bank car 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.

Q: Can I get a top-up loan on my existing HDFC Bank car loan?

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.

Q: Does HDFC Bank offer financing for all types of car models?

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.

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