HDFC Car Loan

Updated: 08-06-2022 07:29:51 AM

 

HDFC Car Loan Interest Rate and Fees*

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

 *The facts and figures provided above are indicative and liable to change periodically.

HDFC offers Car finance plans for both used and new cars at competitive interest rates. Apply for an HDFC car loan and make use of its doorstep service facility.

HDFC Car Loan Eligibility Criteria

The eligibility of the HDFC car loan applicant depends upon the following criteria:

• Employment: This means, either the loan applicant should be a salaried professional who is drawing a salary by working at some private or public limited company, or the applicant is a self-employed person who owns a business, or owns a partnership/private limited firm, or works as a director of a public limited company.
• Age: For a salaried person, the minimum age requirement is 21 years and the maximum age or the age at end of loan tenure should be 60 years. For a self-employed person, the minimum age requirement is 21 years and the maximum age or the age at end of loan tenure should be 65 years.
• Income: A salaried person should earn at least Rs. 1,80,000 p.a. including the income of your spouse/Co-applicant. While a self-employed person’s income requirements vary as per the business type (sole-proprietorship, partnership, private limited company, and public limited company).

Documents Required to Apply for Car Loan from HDFC Bank

Documents Required for New Car Loan

• Identity and address proof documents as accepted by HDFC
• Income Proof: Latest salary slip with form 16.
• Last 6 months Bank Statement

Documents Required for Used/Pre-owned Car

• In addition to the above documents you will need to submit the following:
• Bank accepted proof of age and address documents
• Proof of signature verification acceptable to HDFC Bank

Documents Required for Loan against Car

In addition to the address, identity, age, income and sign verification proof, you will need to submit the following:

• Repayment record for 9 months for vehicle under personal usage and 12 month repayment record for vehicles under commercial usage.
• Foreclosure statement (if non HDFC Bank Car-loan on the vehicle).

Documents Required for HDFC car loan from Self-employed Applicant

Documents Required for New Car Loan

• Identity and Address Proof documents of
• Income Proof: Latest Income Tax Return
• Address Proof: Ration card, Driving licence, PAN Card, Voter ID card, passport, Life insurance policy, telephone/electricity bill, etc.
• Last 6 months Bank Statement

Documents Required for Used/Pre-owned Car Loan

• Age Proof accepted by HDFC
• Proof of identity and address as per HDFC Bank’s policies
• Proof of Address: Photo Ration card with DOB, Photo Driving licence with DOB, Passport copy, Telephone bill, Electricity bill, Credit Card statement with credit card copy, Employer certificate/ID.
• Proof of Sign Verification: Passport, Photo driving licence with DOB, Credit Card statement with credit card copy, Banker’s verification, Copy of margin money paid to bank.

Documents Required for HDFC car loan from Firms/Companies

Documents Required for New Car Loan

• Proof of Identity: Not Applicable
• Proof of Income: Audited balance sheet, latest 2 years Profit & Loss Account and the company’s latest 2 years IT returns
• Proof of Address: Ration card, Driving licence, Aadhar Card, PAN Card, Voter ID card, passport,Life insurance policy,telephone bill, electricity bill.
• Last 6 months Bank Statement

Documents Required for Used/Pre-owned Car Loan

Partnership Firms:

• Proof of Age and Identity: Partnership deed.
• Income Proof: Latest acknowledged ITR and CA-certified Balance Sheet with P&L account statement. If business turnover is more than Rs. 40 lakhs or professional turnover for doctor/lawyer exceeds Rs. 10 lakhs, the balance sheet must be audited but no ITR is required.
• Proof of Address: Partnership deed or any utility bill.
• Any bank accepted proof of signature verification.

Private Limited Companies or Public Limited Companies

• Accepted proof of age and identity include Certificate of incorporation as well as/or Memorandum and Articles of Association.
• Proof of Income: Latest Income Tax Return and audited Balance Sheet with Profit and Loss Account.
• Proof of Address: Memorandum and Articles of Association / Certificate of incorporation or any of Telephone or Electricity Bill.
• Proof of Sign Verification: Passport, Photo driving license with the DOB, Credit Card statement with credit card copy, Banker’s verification, Copy of margin money paid to bank.

Features of HDFC Car Loan

HDFC Car loans are very popular among car-buyers owing to its deals on car loans. Some key features of Car loans offered by HDFC Bank include:

• You can avail 100% finance for your new car.
• HDFC Bank Car loan is approved within a really short time span of just 30 minutes.
• Flexible loan repayment tenure of 7 years.
• Competitive and fixed rate of interest.
• Lowest down payments.
• Low Car loan EMIs.

HDFC Car Loan Categories

HDFC bank provides car loan in three different options:

HDFC New Car Loan

If you are considering buying a brand new car to support your lifestyle, but are not able to find funds for the same, then apply for an HDFC bank car loan. HDFC bank car loans offer finance at attractive interest rates for your new car.

HDFC bank loan for a new car comes with the following benefits and features:

• You can avail up to 100% finance on your new car. But, this facility is offered on specific car models.
• HDFC car loans can be availed for the widest range of cars and multi-utility vehicles in India.
• The loan can be repaid in flexible repayment tenures ranging from 12 months up to a maximum of 84 months.
• The quantum of the car loan can be up to 6 times the yearly income of the borrower.
• Check eligibility for HDFC car loan in less than a minute.
• HDFC Car loan is approved in 30 minutes.
• Affordable EMI repayment options on each and every type of HDFC Bank car loan.
• Fast-track your car loan by choosing from one of the HDFC plans that suits you.
• Attractive interest rates.
• Unique schemes for existing HDFC bank customers.
• Car loans up to Rs. 1.5 Cr.

HDFC Used/Pre-owned Car Loan

With HDFC used car loan, you can get finance for buying a second-hand car. Managing for funds for buying a used car isn’t always an easy thing to do. If you take HDFC car loan the Bank also helps you in selecting a good quality used car at competitive prices, through its tie-ups with select dealers across the country.

HDFC pre-owned car loan comes with the following benefits and features:

• The Bank finances cars of any make manufactured in India but not more than 10 years old.
• Finance up to 80% of the value of the car.
• Flexible repayment tenures, starting from 12 to 60 months.
• Car loan can be availed up to 3 – 6 times of the borrower’s annual income.
• Finance for used cars is available for almost all car models
• Attractive interest rates.
• Low EMIs.
• Fast-track your car loan from HDFC Bank by choosing from different plan options.
• Get an additional loan on your current HDFC Bank Auto loan
• Special privileges for HDFC bank account holders
• Car loans up to Rs. 50 Lakhs

HDFC Loan Against Car

If you have paid your car loan installments on time for at least 9 months, then you can avail a top-up on your existing car loan with HDFC Bank’s Loan against Car. This loan scheme allows you to get an additional loan till the extent of your original loan amount, at a competitive rate of interest.

HDFC Loan against Car comes with the following benefits and features:

• Get loans of up to 100% of the original loan value of the car.
• Car valuation is not mandatory.
• A wide range of approved models and manufacturers are considered.
• This scheme offers quick and hassle-free disbursal of the loan amount.

HDFC Car Loan Additional Charges/Fees

Additional charges associated with HDFC bank car loan are:

Foreclosure Charges

• Foreclosure is not allowed till 6 months from date of availing car loan
• Within 1 year from 7th EMI – 6% of Principal Outstanding for pre-closures
• Within 13-24 months from 1st EMI – 5% of Principal Outstanding for pre-closures
• Post 24 months from 1st EMI – 3% of Principal Outstanding for pre-closures

Part-Payment Charges

• Part-payment is allowed only after the completion of 12 months (i.e., Post payment of 12 EMIs)
• Part payment can be done only twice during the loan tenure and is allowed only once in a year. The part payment should not increase beyond 25% of Principal Outstanding in any case.
• 5% on the part payment amount in case part prepayment is within 13-24 months from 1st EMI
• 3% on the part payment amount in case part prepayment is post 24 months from 1st EMI

Stamp Duty (non-refundable): As per actual costs

Late Payment Penalty: 2% per month

Processing fees^* (Non – refundable)

New Car Loan:

• Up to 2.5 Lakhs: Rs. 2825/-
• Over Rs. 2.51 Lakhs up to 4 Lakhs: Rs. 3850/-
• Over Rs. 4.01 Lakhs to 5 Lakhs: Rs. 4300/-
• Over Rs. 5.01 Lakhs up to 10 Lakhs: Rs. 4650/-
• 10 Lakhs plus: Rs. 5150/-

Pre-owned car Loan & Loan against Car:

2% of loan amount + Rs. 200 or Rs. 5200/-, whichever is lower.

Cheque or ECS swap charges: Rs 500 each time

Loan Cancellation

New Car Loan:

Rs. 1000/- will be charged. In case changes to the Registration Certificate are required, an additional refundable security deposit of Rs.5000 is applicable.

Pre-owned Car Loan:

In case of loan cancellation, applicable interest charges from date of disbursement till the amount disbursed is paid back to HDFC Bank will be borne by the customer. A few charges such as processing fee, stamp duty and RTO charges will not be refunded.

Legal Charges: Legal expenses, repossession, and other incidental charges are chargeable as per the specific case.

Duplicate Copies: Duplicates/copies of No-due certificate and/or NOC would cost Rs.500 each time.

Loan rescheduling charges/ rebooking charges: Rs. 1000 will be charged. If changes are required on RC, refundable Security Deposit with the non-interest bearing of Rs. 5000 would be required.

Special NOC charges: Rs 500 maybe applicable in case of CNG/LPG vehicles.

CIBIL Report Charges: Rs. 50 may be applicable if requested.

Payment Instrument Charges: Return Charges for any payment instrument is Rs. 550/- each time.

Amortisation Schedule Charges: Amortisation Schedule can be downloaded from E-Delight without any charges. Per schedule Rs. 200/- would be charged at customer service desk.

Commercial / Personal Use NOC (conversion subject to credit approval): Rs. 2250/- per NOC

Collateral Charges: Rs.300 per case

HDFC Car Loan EMI Calculation

The car loan which you take to purchase a car needs to be repaid back in EMIs or equated monthly installments. The loan amount added to the accrued interest is the principal amount which is distributed equally over the loan tenure. The number of EMIs you pay is equally divided over the number of months in a loan tenure.

The car loan EMI calculation depends on the following factors:

• Car Loan Amount: It is the amount which you borrow from the lender to purchase a car. Car loan amount eligibility depends upon the cost or valuation of the car and also the monthly income of the loan applicant.
• Tenure for a car loan: The tenure of the loan or the repayment period is the time which is given by the lender to repay the loan amount. Repayment tenures are usually flexible and can be chosen as per choice.
• Interest rate: The Interest rate on an HDFC Bank car loan can be fixed or floating. If the interest rate type is fixed then the EMIs are equal throughout the tenure of the loan, whereas in the case of floating interest rates, the EMIs vary.  HDFC car loan interest rate is of the fixed type, therefore the loan EMIs are fixed throughout the loan tenure.

Car loan EMI Calculator

Car loan EMI calculator is a tool which is available online on Bank or lender websites and also on a number of financial websites. This tool is a calculator which can be used to calculate the EMI which the borrower will have to pay each month to satisfy the borrowed amount.

EMI calculator lets you calculate the amount which you will have to pay every month if you borrow a loan. In order to calculate the EMI for your loan, you will need to have an idea about how much loan amount you need, for how long and what is the interest rate applicable on it.  These three inputs are required for calculating the EMI. Once you enter these three loan parameters, the Car loan EMI calculator instantly displays the EMI.

Calculate EMI for HDFC Bank car loans using PaisaBazaar’s car loan EMI calculator. You can use this calculator any number of times without a pause. Experiment with different loan amount and tenures to reach an EMI which fits your budgetary constraints.

About HDFC Bank

The Housing Development Finance Corporation Limited (HDFC) was founded in the year 1994 and is headquartered at Mumbai, Maharashtra. It is the largest bank in India in terms of market capitalization and the second largest private bank in India by the measure of its assets. HDFC was amongst the first to get ‘in principle’ approval from the Reserve Bank of India (RBI) for establishing a bank in the private sector, under RBI’s liberalization of the Indian Banking Industry in 1994.

The HDFC Bank is one of the leading banking organizations of the country trusted by a wide range of customers across the country. HDFC Bank offers a wide range of banking services having three key business segments- wholesale banking, treasury, and retail banking. As on December 31, 2015, HDFC Bank has 4,281 branches across 2,505 cities in India and a network of 11,843 ATMs across the country. The Bank also has a presence in foreign countries, including Bahrain, Hong Kong, and Dubai. The bank offers facilities for phone banking, mobile banking, net banking, and SMS based banking. The subsidiaries of the Bank include HDB Financial Services Limited (‘HDBFS’) which is into retail asset financing and HDFC Securities Limited (‘HSL’) which is into stockbroking.

Car loans provided by HDFC Bank are amongst the best car loans in India. The bank offers car loan for both new and pre-owned cars. Due to its tie-up with different authorized car dealers across India, HDFC provides car finance plans for a wide range of cars.

HDFC Car Loan FAQs

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

Usually, HDFC offers loan tenure of 3-7 years. Further, the tenure for a HDFC car loan also depends upon the car you buy. For instance, for a premium car the tenure is restricted to 3 years maximum.

Q. How much loan amount am I eligible for?

The amount of loan sanctioned is determined by your annual income. If you are a salaried person, you can borrow up to 3 times your annual salary. If you are a self-employed professional this amount stands at 6 times your annual income.

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

Yes, pre-payment option is available for your HDFC car loan but only after a period of 6 months of availing the loan. The 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?

Usually a guarantor is not required. But, if you fail to meet the income criteria of the bank, then a guarantor or a co-applicant is required.

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

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.