In case you plan to purchase a new car, you can easily simply the purchase procedure by visiting the nearest branch of HDFC bank, which is the largest private sector bank in the country, to opt for a finance scheme. At HDFC Bank, the interest rate for new car loan interest starts at just 8.10 per cent per annum, and you can even get a car loan for a maximum period of 7 years. Not only this, applying for car loan at HDFC bank requires minimal paperwork and you even benefit from quick processing of the loan application.
|Features||New Car Loan||Used Car Loan|
|Processing Fee||0.40% Max Rs. 10,000||2.00% Min Rs. 5,000|
|Loan Tenure||Upto 7 years||Upto 7 years|
|Lowest EMI||₹ 1,564 per lakh||₹ 1,564 per lakh|
|Loan Amount||Upto 100% of ex-showroom price||Upto 100% of market value|
|Prepayment Charges||5% from 13-24 months, 3% after 24 months||Not allowed for 6 months; 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months|
As is the case with car loan schemes offered by other banks, the HDFC bank car loan interest rate depends on a host of important factors, including the loan amount, the earning of a borrower along with his employment category, loan tenure and his repayment capacity-
|Factors Determining HDFC Bank Car Loan Interest Rate|
|Loan amount||HDFC Bank tends to provide a new car loan at a comparably low rate of interest in case the borrowed amount is high. It should be noted here that HDFC Bank offers finance of up to 100% of the ex-showroom price of the new car.|
|Salary||If your salary is high, getting a car loan at a comparably lower rate of interest gets easy. Hence, the HDFC Bank fixes the new car loan interest rate as per the net monthly income of the loan applicant.|
|Employer Category||The employer category of the buyer plays an important role in finalizing the HDFC Bank car loan interest rate. Those employed by the companies that are recognized by the HDFC Bank get new car loans at a relatively lower interest rate.|
|Relationship with the Bank||You can even get a special rate of interest for HDFC Bank new car loan if you are already an existing account holder of the HDFC bank.|
|Loan Tenure||HDFC Bank offers a loan for a period of up to 7 years.|
|Repayment Capacity||The HDFC Bank car loan interest rate can be decided as per the repayment capacity of the buyer, which is decided as per the CIBIL score.|
Most banks have pretty much a similar set of criteria for the eligibility of getting a car loan, which includes the age of the borrower, his or her minimum annual income, credit score, loan tenure and the loan to value ration. In the table below, we have given the eligibility criteria for getting HDFC Bank car loan.
|Age||21 years – 60 years|
|Minimum Annual Income||Salaried: Rs 1.80 Lakhs |
Self Employed Professionals: Rs 0.60 Lakhs
Self Employed Businessmen: Rs 0.60 Lakhs
|Minimum Credit Score||700 and above|
|Loan Tenure||7 years|
|Loan to Value Ratio||100% of ex-showroom price|
There are many factors that affect the eligibility to get an HDFC Bank car loan. These include –
HDFC Bank Car Loan EMI is the amount that you need to pay to the bank on a pre-decided date every month so that you can repay your home loan. Currently, the lowest EMI per lakh offered by HDFC bank is Rs. 1,564 at lowest car loan interest rate of 9.25%.. The HDFC Bank car loan EMI is based on the below factors –
|Factors Determining EMI|
|Rate of interest||Higher the rate of interest at which you get the HDFC Bank car loan, higher will be the EMI you will have to pay every month.|
|Loan tenure||The EMI is inversely proportioned to your loan tenure.|
|Loan Amount||Another factor that influences your HDFC Bank Car Loan EMI is the loan amount. Higher the loan amount, higher will be the EMI.|
Once you have decided the loan amount and have got aware of the HDFC Bank car loan interest rate, you can calculate the EMI you will have to pay every month using the free HDFC Bank car loan EMI Calculator. It’s pretty easy to use an EMI calculator as one simply has to fill in the loan amount, the rate of interest and the loan tenure and he is immediately told the EMI that he or she needs to pay. The EMI calculator works on the below equation –
E= P. r. (1+r)n/[(1+r) n -1]
P is the principal amount (loan amount)
r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
n is the tenure of loan in months
E represents the monthly payment or EMI
For example, in case you take a loan of Rs 7 lakh for a tenure of 5 years at a rate of interest of 9.25 per cent, you will have to pay an EMI of Rs. 14,616 for 5 years.
All banks have some standard charges on a loan. These include foreclosure charges and processing fee. Most banks charge a foreclosure penalty in case you need to repay your loan early, be it in part of full. Similarly, most banks charge a processing fee when issuing your loan. The HDFC Bank auto loan fee and charges have been given below –
|HDFC Bank Car Loan Fee and Charges|
|Foreclosure Charges||These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. HDFC Bank allows prepayment of vehicle loan after paying 1 EMI with prepayment 5% from 13-24 months, 3% after 24 months.|
|Processing Fee||HDFC Bank asks for a processing fee of 0.40% of loan amount. Max. ₹ 10,000 with applicable ser|
You can transfer your HDFC Bank car loan balance from another bank. However, the availability of this feature does depend on your eligibility and therefore, you are required to go to the nearest HDFC branch in order to figure out your eligibility. Once you get a go-ahead from the bank, you can start the paperwork for transferring the car loan balance.
Other than transferring your car loan balance, you can even top up the car loan. However, even for this, you’ll need to check your eligibility. This can be done visiting a branch of HDFC and meeting the officer handling the car loan department.
One needs to submit a set of documents to the HDFC Bank when applying for car loan. These documents vary between salaried employees and self-employed professionals. However, there’s a set of common documents between two, which include things like Aadhaar, passport, income documents and more.
|Types of Employee||Documents|
|Salaried Employees||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PAN, Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN/Quotation of car/Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
|Self-Employed||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PANIdentity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PANQuotation of carResidential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
The HDFC Bank car loan interest rate stays the same throughout the loan tenure. However, the interest rate of the loan is based on a lot of factors. The HDFC Bank car loan interest rates for both new and used car loans range from as low as 8.1 per cent per annum. The interest rate at which you get the car loan is based on the below factors:
|Factors Determining HDFC Bank Car Loan Interest Rate|
|Loan amount||HDFC Bank will offer a new car loan at a relatively lower interest rate if the borrowed sum is higher. Also, you should note that HDFC Bank provides finance of up to 100 per cent of the on-road price of the vehicle.|
|Your Salary||In case your salary is high, getting a car loan at a relatively lower rate is possible, Therefore, the HDFC Bank fixes the new car loan interest rate as per the net monthly income of the borrower.|
|Employer Category||The borrower’s employer category plays a huge role in deciding the HDFC Bank car loan interest rate. Those working in companies recognized by the HDFC Bank tend to get new car loans at a relatively lower interest rate.|
|Relationship with the Bank||You can benefit from a special rate of interest for HDFC Bank new car loan in case you are an existing account holder of the HDFC bank and enjoy a good reputation in the eyes of the banker.|
|Loan Tenure||HDFC Bank offers a loan tenure of up to 7 years.|
|Repayment Capacity||The HDFC Bank car loan interest rate is also decided as per the repayment capacity of the buyer, which is adjudged through the CIBIL score.|
A: At present, HDFC car loan interest rates range from 8.10% to 10.00%.
A: At present, the lowest EMI per lakh on HDFC Bank car loan is Rs 1,351 when calculated at the lowest interest rate of 8.10% and for a tenure of 7 years.
A: The maximum car loan tenure offered by HDFC Bank is 7 years.
A: HDFC Bank charges a processing fee of 0.40% of loan amount (maximum of Rs 10,000 with applicable service tax).
A: HDFC Bank offers you finance on 100% of ex-showroom price of car.
A: Yes, HDFC offers car loan to eligible applicants that are at least 21 years old at loan approval time and 60 years old at loan maturity time.
A: HDFC bank has a prepayment charge of 5% from the first 13-24 months and 3% after 24 months.
A: Yes, you can add the income of your spouse to increase your loan eligibility and to get a higher loan amount.