HDFC Bank Used Car Loan Interest Rate and Fees
|Features||Pre-Owned/Used Car Loan|
|Interest Rate||10.16% – 16.95% (Avg 13.70%)|
|Documentation Fees||Rs. 630 per case|
|Loan Amount||85% of the car value|
|Stamp Duty||At Actuals|
|Processing Fees||1.5% of loan amount, maximum of Rs. 5,000|
|Cheque/ECS swapping charges||Rs. 500/- per instance|
|Collateral Charges||Rs. 475 per case|
|Late Payment Penalty||2% per month|
Documents Required for Used Car Loan from HDFC Bank
These are the documents that are needed to apply for a pre-owned/used car loan from HDFC bank:
- Proof of residence
- Age proof and photo ID
- Signed application form
- Bank statement of the last 6 months
- Salaried people need to give their income tax returns or Form 16 and salary slips of the last three months
- Self-employed individuals need to give income tax returns of the last three years along with the computation of income and profit and loss statement and balance sheet of last three years, duly certified by a CA
Eligibility Criteria for Used Car Loan from HDFC Bank
An applicant is qualified for a HDFC used car loan if:
- He/She is older than 21 years and less than 65 years old.
- Self-employed or salaried with a regular income.
- His/her income is more than the minimum amount required.
Factors on which the loan eligibility depends are:
- Rs 2,50,000 is the minimum income required.
- There is a cap on the loan of 85% of the ex-showroom price.
- If he has more loans and pays EMIs, his eligibility will reduce.
If he wants to increase the amount of money that he gets as a loan from HDFC, he must choose tenure of loan repayment of more than 7 years and should have no other or least possible credits on himself to repay. Paying off the credit card bills on time also improves the credibility of the applicant.
Benefits and Features of Used Car Loan from HDFC Bank
HDFC pre-owned/old car loan is one of the most popular in its category and that is because of the following reasons:
- The loan is of great value as you can get 85% funding of the on road price of the used car.
- The documentation to apply and get the loan is very simple as only basic documents are required.
- The interest rates are fixed and the system is very transparent.
- The down payment of the loan is very less making it easier to own the car.
- The EMI payments are not affected by the fluctuations in the market rate making the EMIs stable.
- The loan is fast as the sanction and disbursal is quick with easy paperwork.
- The charges are minimal and interest rates of the car loan are very attractive.
HDFC Bank Used Car Loan Plans
The different HDFC bank used car loan plans that are available are:
- Credit Card Plan
- No Income Document Plan
- NRI Loans Plan
- Fixed Deposit Loan
Credit Card Plan
If the applicant is a self-employed/salaried individual/proprietor and possesses one of the following credit cards, he can be assured of a faster processing of the loan application. The list of cards are:
- Citibank Diners
- Citibank Gold
- ANZ Grindlays Gold
- HSBC Gold
- American Express Charge card
- American Express gold card
- HDFC Bank International Credit card
- Standard Chartered Gold
To get a used car loan using a credit card, one must submit the credit card statements instead of the income documents. An applicant can apply for the credit card plan if the credit card is at least a year old and one can submit last two credit card statements. One cannot take a loan for a multi-utility vehicle under this plan.
No Income Document Plan
If one does not have a proof of income, he can get a loan of 60% for 5 years and 65% for 3 years. This is calculated on the value of the car.
NRI Loans Plan
With a few additional documents like salary slips of NRI, proof of ownership of a property, last three years endorsement on passport and postdated cheques from the resident account, one can apply for a loan for his Indian relatives.
Fixed Deposit Loan Plan
If one has a fixed deposit with HDFC bank and its value is more than 50% of the car value, he is eligible to get a loan of up to 95%. The installment can be paid as per his choice and the lien is on the specified fixed deposit.
HDFC used car loan is the best option for any individual looking to take a loan to buy a used car. The process to apply is simple and least cumbersome, unlike many others in the market. With lots of features and benefits, this option is undoubtedly one of the best ones.
Things to Keep in Mind Before Buying a Used Car
Buying a car is a dream of many, but due to high costs of vehicles and increasing maintenance and fuel costs, many people cannot afford it. Buying a used car can definitely help you save a considerable amount of money. Buying a used car is a good option, but it should be ensured that the money is not paid to take over someone else’s problems.
There are not many ways to make sure that a person is buying a good car, but some points should be definitely kept in mind:
Carefully analyze and ascertain how much money can be devoted to the car on a monthly basis. Apart from the cost of the car, amounts for insurance, repairs and maintenance should also be kept in account. Research the present value of the car online and how much the loan amount should be. With all these figures in hand, making a well calculated decision is way easier.
Shortlist the models
Start with the model of the car you have in mind, but avoid getting stuck to one model. Be flexible so that there are more chances of you getting a good car which suits your budget as well. Research well about the car before you finally zero on to it.
Meet the owner
Once you have shortlisted the car, you should take an appointment with the owner and take a test drive of the car. You must ask essential questions from the owner, like:
- Ask about the original owner of the car and also about the year of purchase and manufacture.
- Ask about the mileage of the car
- Enquire about the maintenance records and service history
- Ask about the accidents of the car and if there were any, find out the extent of the damage
- Confirm about the mechanical issues of the car
- Reason for selling the car
If the owner has taken care of the car and has all records and answers, you can go ahead with the car. On the other hand, if the answers of the owner do not sound convincing, move on to the next option.
Test drive the car to know how well it is performing. You can check all parts of the car and the interiors. With the test drive, you will also come to know about the condition of the car and how well it has been maintained.
Once you are convinced about the car, take it to a trusted mechanic. The mechanic will be able to see and analyze from a different point of view. He can also take it for a test drive and see the machinery and performance of the car. You can discuss the problems you feel and he will help you evaluate the car. If the mechanic feels that the car needs some repairs, it is better to avoid the deal or renegotiate the cost of the car.
Negotiate the price
Never accept the asking price at once. Give a decent offer and negotiate. If you are talking to a dealer ensure all costs are covered in the price and try and get some add-ons. When you are talking to the owner, make sure you inspect the car well and negotiate to keep in mind the problems of the car.