HDFC Bank Car Loans

HDFC Bank, also known as Housing Development Finance Corporation, was established in 1994 and was the first private bank to be authorized by RBI. HDFC is one of the most reputed banking institutions in the country and has an extended network of several thousand branches and innumerable ATMs across the nation. Such an extensive network of branch offices is impressive and speaks of the bank’s position in the banking industry.

HDFC Bank has an exhaustive list of products including credit cards, gold loans, home loans, auto loans, two-wheeler loans, personal loans, and education loans.

Millions of Indian millennials today are on the move and require a means of transport that supports rapid progress. In 2019, many Indians already possess a car that helps support their lifestyle. Cars have grown very important in the lives of Indians in today’s age, and have become a necessity rather than an indulgence. Yet, so many Indians still aspire to own their own cars but lack the financial means to do so.

HDFC Bank comes to the heed of these people, offering affordable car loan deals to help customers buy their dream vehicles. The loan tenures are optimally designed, and the amount depends on the on-road cost of the vehicle. If you can't afford to keep paying, you could even transfer the loan to someone else! mymoneykarma provides you with all the information that you need about HDFC Bank car loans.

Features of HDFC Bank Car Loans

HDFC Bank car loans have a host of benefits and features that are customized for HDFC Bank customers, as given below.

1. Attractive rates of interest under various car loan schemes.

2. Hassle-free loan processing and quick disbursal of loans.

3. Flexibility in choosing the time of EMI payment

4. Affordable and sustainable car loan EMIs.

5. Minimal processing charges as compared to other banks

6. Loan amounts that cover up to 100% of the on-road price of select cars.

7. Long loan tenures, of up to 7 years.

8. Salary account holders and other account holders of HDFC Bank get exclusive discounts on loan interest rates.

9. Minimum loan processing charges associated with the car loan.

HDFC Bank Car Loan Interest Rates

HDFC Bank offers affordable rates of interest on its car loans. The interest rates are set between 8.85% – 17.50% per annum.

Here is a summary of all the necessary information on HDFC Bank car loans.

Interest Rate	8.85% – 17.50%
Minimum Loan Amount	Rs 2 lakhs
Maximum Loan Amount	Upto 100% of the on-road price of the vehicle for some schemes, or Rs 3 crores.
Minimum Repayment Tenure	1 year
Maximum Repayment Tenure	7 years

Fees and Charges Associated with HDFC Bank Car Loan

Here is a list of charges associated with HDFC Bank car loans.

Loan Processing Charges	0.4% - 1.5% of the loan amount
Foreclosure Charges	3% - 6% of the outstanding loan amount + GST
Documentation Charges	Rs 630
Prepayment or Part-payment Charges	3% - 5% of the loan amount + GST
Loan Cancellation / Re-booking	nil
Charges for Late Payment of Loan Amount	2% of the outstanding amount
Stamp Duty & other Statutory Charges	As applicable by state laws
Legal, Repossession & Incidental charges	As actuals
Duplicate Statement Issuance Charges	Rs 250
Loan Rescheduling Charges/ Rebooking Charges	Rs 1,000
Duplicate No Dues Certificate / NOC	Rs 500
Collateral Charges	RS 475

HDFC Bank Car Loan EMI Calculator

THe HDFC Bank website provides an EMI calculator for its car loans. Applicants can use it to check the tentative amounts that they need to pay as loan EMIs. The EMI calculator depends on the following factors.

1. Interest rate

2. Loan amount

3. Loan tenure

4. Existing relationship with the bank

5. Current price of the car

EMI Calculator Example

Arjun wants to gift a new car to his father on the eve of his 60th birthday. He approaches HDFC Bank to avail a car loan under HDFC Bank New Car Loan Scheme. He wants to buy a Ford Figo, whose on-road price is Rs 4.5 lakhs. He receives a loan of Rs 4.5 lakhs with a loan tenure of 5 years at an interest rate of 10% per annum. Using the car loan EMI calculator, Arjun’s EMIs amount to a nominal amount of Rs. 9,561 per month.

 

Documentation Required For HDFC Bank Car Loans

The list of documents required for HDFC Bank car loans is different for different customers, depending on their occupation. Mymoneykarma gives the list of essential documentation for each occupational category.

Salaried Customers

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Salary slips for the last three months.

4. Copies of Form 16 for the last two years.

Self-employed Customers/ Businesspeople

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Copies of ITR forms for the last two years.

4. Copies of Shop & Establishment Act Certificate.

5. Copies of sales tax certificate for the last two years.

6. Audited balance sheet of the business for the last two years.

How to Apply For HDFC Bank Car Loans

The HDFC Bank car loan application process is quite simple. There are two different ways to avail the car loan.

1. Online registration:  Customers can go to the HDFC Bank website and download the HDFC Bank car loan application form. They then need to fill it in and upload the required documents. Upon approval of the loan, the amount is deposited to the applicant’s account.

2. Walk-in: Customers can also visit the nearest HDFC Bank branch and ask for an HDFC Bank car loan application form. They must also submit copies of the required documents along with the filled in application form. The loan is then processed and approved within a few working days.

HDFC Bank Car Loan Schemes

HDFC Bank offers two types of car loan schemes to its customers. The highlights of each scheme are given below.

HDFC Bank New Car Loan Scheme

HDFC Bank offers this loan scheme to its customers for buying new cars. Here are a few features of HDFC Bank New Car Loan Scheme.

1. The loan can be used to buy new passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The car loan covers up to 100% of the on-road price of the new car on select models, up to Rs 3 crores.

3. The facility of step-up EMIs that allow lower EMIs in the first two years and a higher EMI only from the third year.

4. The facility of Balloon EMIs that allow lower EMIs for the entire loan tenure except the last year and a lump sum contribution (balloon) in the last year of the tenure.

5. No foreclosure charges on availing the balloon EMI facility.

6. Complimentary insurance benefits through the Suraksha Kawach program, such as accidental hospitalization insurance of Rs 1 lakh, permanent total disability insurance cover of Rs 5 lakhs, and personal accident death insurance cover of Rs 5 lakhs.

7. The facility of a top-up loan with minimal documentation.

8. Flexible loan tenures, of 12-84 months.

9. Nominal interest rates, of 8.85% - 14.51% per annum.

Eligibility for HDFC Bank New Car Loan Scheme

1. Must be a salaried employee, self-employed individual, or business-person

2. Must have a decent credit score

3. An age range of 21-60 years for salaried customers.

4. An age range of 21-65 years for self-employed customers or businesspeople.

5. Minimum income of Rs 3 lakhs per year for salaried individuals

6. Minimum income of Rs 3 lakhs per year for self-employed individuals or business people 

7. Minimum work experience of 2 years, and 1 year of work experience with the current employer for salaried customers.

8. Minimum work experience of 2 years for self-employed customers or businesspeople.

HDFC Bank Pre-Owned Car Loan

HDFC Bank offers pre-owned car loan schemes to customers who want to buy certified pre-owned cars. The purchase of the cars should be from trusted dealerships such as Honda's Auto Terrace, Hyundai’s H-Promise, Maruti TrueValue, Tata’s Assured, or Mahindra’s First Choice. The highlights of HDFC Bank Pre-Owned Car Loan Scheme are given below.

1. The loan can be used to buy any kind of pre-owned passenger cars, SUVs, or MUVs.

2. The minimum loan amount is Rs 1 lakh and the maximum loan amount covers up to 85% of the on-road price of all car models.

3. The maximum age of the pre-owned car can be 4 years.

4. The rate of interest on loans under this scheme ranges from 10.5% - 17.5% per annum.

5. Loan processing proceedings are transparent.

Eligibility for HDFC Bank Pre-Owned Car Loan Scheme

1. An age range of 21-60 years for salaried customers.

2. An age range of 25-65 years for self-employed customers or businesspeople.

3. Must be a salaried employee, self-employed individual, or business-person.

4. Must have a decent credit score

5. Minimum income of Rs 2.5 lakhs per year for salaried individuals

6. For businesspeople, a minimum income of Rs 2.5 lakhs per year for selected models, and Rs 2 lakhs per annum on all other models.

7. Minimum work experience of 2 years, with a minimum of 1 year with the current employer for salaried customers.

8. Minimum work experience of 3 years for self-employed customers or businesspeople.

Frequently Asked Questions

Q: What credit score is needed for a HDFC car loan?

A: Generally HDFC Bank requires a minimum credit score of 700. If your credit score is less than 700, your loan application will most likely get rejected.

Q: Can I avail HDFC Bank Car Loan for buying a pre-owned car?

A: Yes, HDFC Bank provides car loans for buying used cars under its Pre-Owned Car Loan Scheme.

Q: Why has my HDFC Bank car loan application been rejected?

A: For an HDFC Bank car loan to be approved, applicants need to meet all the eligibility criteria and upload the required updated documentation within the given time. The applicant should also have a decent credit score,  a good debt-to-income ratio, and no history of defaulted EMI payments in the past. 

Q: What happens if I miss paying an EMI for a HDFC car loan?

A: It is better to pay the HDFC Bank car loan EMIs on time, as HDFC Bank charges a hefty penalty fee of 2% of the outstanding loan amount.

Q: What is the processing charge for HDFC Bank car loans?

A: HDFC Bank car loan processing fees vary for different loan schemes, ranging from 0.4% to 1.5% of the outstanding loan amount, plus service taxes.

Q: I have recently graduated and am on my first job. Can I get an HDFC Bank car loan?

A: Salaried customers must meet the age range of 21-60 years to be eligible for HDFC Bank car loans.