Canara Bank Car Loan
HDFC Bank offers car loans at attractive interest rates starting from 8.95% (Rack Interest). Car loans offered by the bank comes with a repayment tenure of up to 84 months.
Key Features of HDFC Bank Car Loan
Some of the notable features offered by HDFC Bank Car Loan have been mentioned below:
- Offers up to 100% on-road finance.
- Budget-friendly monthly payments.
- Quick loan disbursement.
- Provides optional health cover.
- Minimal paper work.
HDFC Car Loan Details
| Type | Details |
|---|---|
| HDFC Car Loan Interest Rate (New Car) | 8.95% onwards (Rack Interest) |
| Maximum Loan Amount | Contact the bank |
HDFC Bank Car Loan-Fees and Charges
| Fees | Charges |
|---|---|
| Processing Fees | 0.5% of the loan amount (minimum of Rs.3,500 and maximum of Rs.8,000) |
| Foreclosure Charges | Before 1 year – 6% of principal outstanding Within 13 months to 24 months from 1st EMI – 5% of principal outstanding After 24 months from 1st EMI – 3% of principal outstanding |
| Documentation Charges | Rs.650 per case |
| Part-payment Charges | Within 13 months to 24 months from 1st EMI – 5% on the part-payment amount After 24 months from 1st EMI – 3% on the part-payment amount |
| Overdue EMI Interest | 1.5% per month |
| Loan Rebooking/reschedule charges | Rs.500 |
| Duplicate no-due certificate/no-objection certificate | Rs.500 per instance |
| Cheque/ECS/SI Return Charges | Rs.450 per instance |
| Collateral Charges | Rs.500 per case |
HDFC Bank Car Loan – Eligibility Criteria
Salaried Individuals
- Aged 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
Self-Employed Individuals (Sole Proprietorship)
- Should be in the business of trading, manufacturing, or services
- Aged between 21 years and 65 years
- Should have been in business for at least 2 years.
- Have an annual income of at least Rs.3 lakh
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 p.a.
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
- Have earnings of at least Rs.3 lakh p.a.
Factors Affecting HDFC Bank Car Loan Eligibility
The eligibility for availing a HDFC Bank car will depend on the below-given factors:
- Income – If your income is on the higher side, there are good chances of your eligibility for HDFC Bank car loan being higher. This is because a higher income indicates higher repayment capacity. To be eligible for HDFC Bank car loan, your yearly income should be at least Rs.3 lakh.
- Loan amount – Your eligibility for a car loan from HDFC will be higher if you apply for a lower loan amount simply because if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to lend to you.
- Repayment tenure – Choosing a longer repayment tenure can lower your eligibility for a car loan as it might give an impression to the bank that your ability to pay the loan is lower. This is because longer repayment tenure results in lower EMIs and the lender may tend to think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
- Credit score – This is an important factor that most banks, including HDFC Bank, consider when determining your eligibility for a car loan. A credit score of 750 and above is considered a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and hence, your eligibility will be higher.
- Relationship with the bank – As stated earlier, HDFC Bank offers instant car loans to their existing customers through the ZipDrive feature. This feature allows HDFC Bank customers to can avail loans instantly, at their convenience, with negligible documentation. This indicates that your relationship with the bank is an important factor while determining your eligibility.
How to Increase Your Eligibility for HDFC Bank Car Loan
- Opt for a shorter tenure – When you choose a shorter repayment tenure, the EMI that you will be paying each month will be higher. This is an indication of your higher repayment capacity which will lead to banks feeling confident to lend to you. So, if you wish to boost your eligibility for a car loan, opt for a shorter repayment tenure.
- Keep your credit score in check – If you wish to increase your eligibility for HDFC Bank car loan, make sure that you maintain a credit score of over 750. You can use the Free Credit Score tool to check and maintain a healthy credit score. Checking your credit score regularly can let you take corrective measures to improve it if your score is low or give you confidence to approach the bank is it is high.
- Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and spends. Before banks lend to you, they will check how much percentage of your earnings goes in paying your debts and a low debt-to-income ratio will be an indication of your high repayment capacity. To enhance your eligibility for a car loan, you should ensure that you maintain a low debt-to-income ratio.
- Apply for a loan for a lower amount – By applying for a loan for a lower amount, you can increase your eligibility for HDFC Bank car loan. A lower loan amount means that the loan will be repaid sooner and hence, the chances of you being eligible for a loan is higher.
How to Calculate EMI on HDFC Bank Car Loan
Before you avail a car loan from HDFC Bank, you may want to know how much amount you will be paying towards the loan each month. This is simply known as EMIs or equated monthly instalments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses better.
You can calculate the EMI for your car loan by using the below-given formula:
E = P*r*[(1+r) ^n/((1+r) ^n-1)]
In the above formula, E denotes the EMI, P the principal amount, r the interest rate and n the number of years or tenure of the loan.
You can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.
HDFC Car Loan EMI Calculator
Comparison for Car Loan Interest Rates of Top Banks with Lowest EMI for 7 Years
| Name of the Bank | Interest Rate (p.a.) |
|---|---|
| State Bank of India | 8.75% onwards |
| HDFC Bank | 8.95% onwards (Rack Interest) |
| Axis Bank | 9.25% p.a. onwards |
| ICICI Bank | 9.10% p.a. onwards |
| Canara Bank | 8.70% p.a. onwards |
| Federal Bank of India | 8.85% p.a. onwards |
| Union Bank of India | 8.70% p.a. onwards |
How to Apply for HDFC Bank Car Loan
Official channel – This method involves you approaching HDFC Bank directly to apply for a car loan. You can either visit the nearest HDFC Bank branch or their official website and apply for a car loan.
You can also get in touch with the customer care of HDFC Bank to receive support on the complete car loan application process.
Documents Required for HDFC Bank Car Loan
Salaried Applicants
| Proof Type | Accepted Documents |
|---|---|
| Proof of Identity | PAN card, Passport, Driving License, Aadhaar card, Voter’s ID, etc. |
| Address Proof | Ration card, Aadhaar Card, Voter’s ID, Passport, Driving License, Telephone bill, Electricity bill, Telephone bill, Life Insurance Policy, etc. |
| Income Proof | Form 16 and latest salary slip |
| Bank Statement | Previous 6 months |
Self-Employed Applicants (Sole Proprietorship)
| Proof Type | Accepted Documents |
|---|---|
| Proof of Identity | PAN card, Passport, Driving License, Aadhaar card, Voter’s ID, etc. |
| Address Proof | Ration card, Aadhaar Card, Voter’s ID, Passport, Driving License, Telephone bill, Electricity bill, Life Insurance Policy, etc. |
| Income Proof | Latest Income Tax Returns (ITR) |
| Bank Statement | Previous 6 months |
Self-Employed Applicants (Partnership Firms and Private Limited Companies)
| Proof Type | Accepted Documents |
|---|---|
| Income Proof | Audited Balance Sheet, Company ITR for the last 2 years, Profit & Loss Account for the previous 2 years |
| Address Proof | Shop & Establishment Act Certificate, Electricity Bill, Telephone Bill, Sales Tax Certificate, SSI Registered Certificate |
| Bank Statement | Previous 6 months |
Self-Employed Applicants (Public Limited Companies)
| Proof Type | Accepted Documents |
|---|---|
| Income Proof | Audited Balance Sheet, Profit & Loss Account for the previous 2 years |
| Address Proof | Shop & Establishment Act Certificate, Electricity Bill, Telephone Bill, Sales Tax Certificate, SSI Registered Certificate |
| Bank Statement | Previous 6 months |
HDFC Bank Car Loan – Tips
The below-mentioned factors must be considered before you applying for a car loan from HDFC Bank:
- Check the Eligibility Criteria: It is important that you check whether the eligibility criteria have been met. In case you don’t meet the eligibility criteria, the application will be rejected. Your credit score will reduce in case the application is rejected.
- Know the Loan Amount: You must choose the loan amount before applying for a loan from the bank. Once the loan amount is chosen, the monthly EMIs can be calculated.
EMI Prepayment
HDFC Bank allows you to prepay the car loan. However, a small fee will be levied in the case of prepayment. The loan tenure will reduce in the case of prepayment.
FAQs about HDFC Car Loan
- What are the EMI options available on HDFC Bank car loan?
HDFC Bank offers two EMI options – Step-up EMI and Balloon EMI. - Can I foreclose my HDFC Bank car loan and if yes, is there a penalty fee?
Yes, you can foreclose your HDFC Bank car loan. - Can I get a top-up loan on my existing HDFC Bank car loan?
You can get a top-up loan on your existing HDFC Bank car loan only if you are an existing customer of the bank. - Do I need to provide a guarantor to avail a car loan from HDFC Bank?
You need not provide any guarantor for availing HDFC Bank car loan if you meet the minimum income criteria. However, if you do not meet the income criteria, you may be asked to provide a guarantor or co-applicant. - Does HDFC Bank offer financing for all types of car models?
There is no restriction on the type of car that can be financed by HDFC Bank car loan.
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