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Introduction
HDFC Bank is among the most prominent names in the banking industry not just in India but also abroad. It not only is the largest private sector bank by assets but also the largest bank in the country by market capitalization. HDFC Bank is also considered as a pioneer or the foremost name in the pre-owned cars loan category. The features and benefits of the loans offered by HDFC Bank for used car loans are unmatched in the market making it the go-to option for the used car loans.
HDFC Bank not only provides finance for the purchase of used cars but also provides assistance in getting the best and the most suitable used/ pre-owned car for the borrower through HDFC Bank Car Bazaar. Customers can specialize in their search at this portal based on their needs like brand name, EMI, location, age, etc. or get finance for used cars purchased from other sources. The entire process of due diligence is taken care of by the bank thereby ensuring the utmost ease and ultimate customer service to the borrowers.
The details of the Bank’s used cars/ pre-owned car loans are provided here.
Eligibility for HDFC Bank Used Car Loans
One of the Basic eligibility criterions for the Bank’s used car loans is the age of the vehicle which should not be more than 10 years at the time of maturity of the loan. HDFC Bank has laid down various criteria for determining the eligible applicants for the Bank’s used car loans. These include the age requirements, category of applicants, minimum income in each case, etc. The details of the Bank’s eligibility for Used Car Loans are tabled below.
| Category | Eligible Persons | Minimum Income Requirement | Other Requirements |
|---|---|---|---|
Salaried Individuals |
| Rs. 2,50,000 per year (spousal income can be included as well) |
|
Self-Employed Individuals (Sole Proprietorship) | Sole proprietors engaged in the business of manufacturing, trading or services | Rs. 2,50,000 per year |
|
Self-Employed Individuals (Partnership Firms) | Self-employed partners engaged in the business of manufacturing, trading or services |
|
|
Self-Employed Individuals (Private Limited Companies) | Individuals that own a private company engaged in the business of manufacturing, trading or services | Rs. 2,50,000 per year | Individuals having office landline |
Self-Employed Individuals (Public Limited Companies) | Directors in a public limited company engaged in the business of manufacturing, trading or services | Rs. 2,50,000 per year | Individuals having office landline |
Self-Employed Individuals (Hindu Undivided Family - HUF) | Self-employed individuals in the business that is classified under HUF | Rs. 2,50,000 per year |
|
Documents Required for HDFC Used Car Loans
HDFC Bank has an extensive list of documents that are required for each category of eligible applicants in order to complete the application process.
The basic KYC documents required by each category of applicants is,
- Age proof
- Identity proof
- Proof of income
- Address proof
- Signature verification proof
Additional documents required for partnership firms and Private / Public Limited Companies as age proof, identity proof, income proof are given below
- Partnership Deed for Partnership Firms
- Latest ITR/ Previous ITR with Advance Tax paid Challan / Latest IT Assessment Order as proof of income. In case the business turnover exceeds Rs. 40,00,000, or the professional turnover exceeds Rs. 10,00,000, the balance sheet needs to have been audited and in which case the latest Income Tax Return need not be taken
- Memorandum and Articles of Association/ Certificate of Incorporation in case of Private Limited or Public Limited Companies
- Latest ITR and audited balance sheet along with profit & loss account as proof of income
Customers can contact the Bank for further details and acceptable documents in each category stated above. Customers can also get these details from the customer service of the Bank.
Features and Benefits of HDFC Used Car Loans
The features and benefits of the HDFC Bank are unparalleled and many fold that make it the most preferred and valued choice for used car loans. The highlights of the Bank’s Used Car Loans are mentioned here under.
Amount sanctioned as loan –
The amount of loan that can be sanctioned by HDFC Bank for purchase of used cars is the highest in this segment among all its peers. HDFC Bank can provide loans up to a maximum of Rs. 2,50,00,000 for purchasing used cars from a wide range of available options.
The above amount is subject to a maximum of 3 to 6 times of the yearly income of the applicant.
HDFC Bank can provide finance up to 100% of the value of the vehicle.
Tenure –
HDFC Bank offers flexible tenure for used car loans ranging from 12 months to 84 months. This is considered to be among the highest tenure available in this category in the market.
Rate of interest –
The rate of interest of the Bank’s used car loans is between 9.75% and 16.95%. This rate depends on many factors like credit score of the applicant, loan amount, tenure, etc.
Loans without documents –
HDFC Bank has the unique feature of easy hassle free loans that can be availed without submitting any documents. The amount of finance and the tenure of such loans (without documentation) are tabled below.
| Amount given as loan | Tenure |
|---|---|
| 80% of the value of the car | 3 years |
| 85% of the value of the car | 5 years |
Margin –
HDFC Bank provides loans up to 100% of the value of the vehicle and has no upfront fees or margin requirement from the borrower except in above cases where loans are provided without any documentation. In such cases the margin requirement of the bank is from 15% to 20% of the value of the vehicle.
Foreclosure charges –
HDFC Bank does not permit the borrower to foreclose the loan before the completion of 6 months from the time the loan is availed. Foreclosure charges subsequent to the completion of 6 months are detailed below.
| Pre-closure Period | Foreclosure charge |
|---|---|
| From 7th month up to 1 year | 6% of the principal outstanding |
| 13 months to 24 months from first EMI | 5% of the principal outstanding |
| Beyond 24 months | 3% of the principal outstanding |
Part-payment charges –
Part payment of the loan is permitted only after the completion of 12 months of the loan taken.
HDFC Bank has laid certain conditions pertaining to part payment of the loan taken.
- Part payment of the loan is permitted only twice during the tenure of the loan
- Furthermore, only one part payment in permitted in any year during the tenure of the loan
- Such part payment made cannot be more than 25% of the principal outstanding.
Part payment charges of the Bank depend on the period in which such part payment is made. The details of the same are,
| Period | Part-payment charge |
|---|---|
| 13 months to 24 months from first EMI | 5% of the part payment amount |
| Beyond 24 months | 3% of the part payment amount |
Other Charge –
HDFC Bank charges a variety of other charges on the used car loans given. Some of them are mentioned below.
- Processing charge – 1.50% of the loan amount (minimum Rs. 2,500; maximum Rs. 5,000
- Documentation charge – Rs. 630 per case/ application
- Overdue EMI interest – 2% per month
- Stamp duty (non-refundable) – as actual
HDFC Bank hosts a detailed list of all the applicable charges on its website under the following link.
Home Personal Borrow Popular Loans Pre-owned Car Loans Fees and Charges.
Detailed above are some of the key highlights of the used car loans of the Bank. Customers can contact the Bank via its customer care service or directly at any of the branches of the Bank to get further details in this regard.
HDFC Bank Customer Care
HDFC Customer care service is an extensive network of efficient executives as well as IVR facility to assist the customers with any of their needs or regarding any of the products and services of the Bank.
Customers can connect to the Bank using the following numbers for any queries that they may have. They will have to provide the details like Customer Identification Number and Telephone Identification Number/ Card Number and Associated PIN to access their account via the customer care service.
HDFC Customer care numbers across India (respective STD Code to be prefixed)
| City | Number |
|---|---|
Ahmedabad | |
Bangalore | |
Chandigarh | |
Chennai | |
Cochin | |
Delhi and NCR | |
Hyderabad | |
Indore | |
Jaipur | |
Kolkata | |
Lucknow | |
Mumbai | |
Pune |
Customer care service on the above numbers is available 24x7 and agent-assisted service is available between 8am to 8 pm on all days
Loans related customer services are also available between 8am to 8 pm on all days including Sundays and Holidays.
Customers can also avail the ChatBot facility of the Bank ‘Ask Eva’ for any general queries relating to the Bank’s products and services.
FAQs – HDFC Bank Used Car Loans
1. What is the rate of interest on HDFC used car loans?
The rate of interest on HDFC used car loans is from 9.75% to 16.95% per annum.
2. What is the tenure of the Bank’s loan?
HDFC Bank provides used car loans for a period of 1 year (12 months) to 7 years (84 months).
3. What is the maximum amount of loan that can be sanctioned by the Bank?
HDFC Used car loans can be sanctioned up to a maximum of Rs. 2,50,00,000.
4. What is the charge of overdue or delayed EMI payment?
HDFC Bank lays a penalty of 2% per month on Delayed or overdue EMI payments.
5. Does the Bank provide loans without documentation?
Yes. Loans without documentation can be availed up to 80 % for 3 years and 85% for 5 years.
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