Loan Spotlight: HDFC Car Loan

As kids we have all loved cars. We would have at one point of time played or imagined us driving cars or racing against friends. As we grow older that dream of owning your own car is carried on in our minds. Instead of racing we think about long drives alone as a journey or with our loved one’s spending time keeping out of the harms of nature – be it the hot sun or rains.

With banks like HDFC offering loans at great rates owning a car has become quite easy. The car can be a utilitarian one giving more mileage or one of more comfort like the luxury sedans. It can be new, or it can be pre-owned for any situation you can get loans from HDFC for any situation.

Features of HDFC Car Loan

The car loan or auto loan offered by HDFC comes with a host of features which include flexible loan repayment, complete 100% financing for the car of your choice! The bank also offers special benefits if you are an existing HDFC customer.

Eligibility Criteria HDFC bank car loans

The HDFC bank loan eligibility details are as follows

The HDFC car loans can be availed by both salaried individuals and self-employed professionals aged between 21-60 for salaried individuals and 65 years being the upper limit for self-employed, the age criteria are the same for a new car or for a pre-owned car.

The other qualifying criteria that the lender considers is the work experience and source of income, it is preferred that the applicant has a job for the past two years and at least one year at the same institute.

The HDFC Bank Car Loan Tenure

 Typically, the car loans are availed for a period from one year to a maximum of seven years (1-7 years)

HDFC Bank Car Loan Interest Rate

The car loan interest rate for a new car ranges averages at 8.81% and for pre-owned cars the interest rate averages at 8.89%

Do note that the HDFC Car Loan Interest Rates are subject to change and is best to check with the lender for the latest rates.

HDFC Bank Car Loan Charges

Following are some of the charges that are levied during the loan tenue and process.

HDFC Bank charges a documentation charge of Rs. 600 per case. Additionally, processing charges, documentation charges, foreclosure and part payment charges are levied by the bank.

For the benefit of easy recall and access, we have tabulated the salient features of the HDFC car loan and eligibility criteria and the documents that an applicant needs to keep handy during the application process.

  

 

New Car Loan

Pre-owned Car Loan

Eligibility

Salaried Individuals:

Includes doctors, CAs, employees of private limited companies, employees from public sector undertakings, including central, state and local bodies

 

Self Employed Individuals:

Includes self-employed sole proprietors in the business of manufacturing, trading or services

Age

Salaried: 21 years of age at the time of applying for the loan, and no older than 60

 

Self-employed: 21 years of age at the time of applying for the loan, and no older than 65 at the end of the loan tenure

Salaried: 21 years of age at the time of applying for the loan, and no older than 60

 

Self-employed: 25 years of age at the time of applying for the loan, and no older than 65 at the end of the loan tenure

Experience

Salaried: Has a job for at least 2 years, with a minimum of 1 year with the current employer

 

Self-employed: Those who have been in business for a minimum of 2 years

Salaried: Has a job for at least 2 years, with a minimum of 1 year with the current employer

 

Self-employed: Those who have been in business for a minimum of 3 years

Income

Minimum of Rs. 2,50,000 per year

Interest rate

7.60% - 15.01%

9.75% - 20.83%

Tenure

Minimum of 1 year to maximum of 7 years

Pre-closure charges

·         No pre-closure allowed for first 6 EMIs

·         6% of Principal Outstanding for pre-closures within 1 year from 7th EMI

·         5% of Principal Outstanding for pre-closures within 13-24 months from 1st EMI

·         3% of Principal Outstanding for pre-closures post 24 months from 1st EMI

Part Payment charges

·         Part payment is not allowed for first 12 EMIs

·         After 12 EMIs it is around 3% - 5%

Late Payment Penalty

2% per month

Processing fees

0.4% of Loan Amount or Rs.10000, whichever is lower

2% of loan amount or Rs. 5,000/-, whichever is lower

 

Documentation Required

   Important documents to be submitted while applying for personal loans with

  • Completed loan application form
  • Photo copy of driving licence
  • Passport size photographs as required
  • Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
  • Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
  • Statement of Bank Account/ Pass Book for last six months
  • Form 16/IT returns for the last two financial years for salaried employees
  • IT returns for the years as stipulated by the bank