Having your own car means a lot to you in today's definition of pride and self-esteem, isn't it? Without the dream 4-wheeler, life seems incomplete and does create a void to fill in. However, unlike the earlier days when only a few had the privilege of buying a car, now it has become normal for a majority of the population in the backdrop of attractive financing schemes. Yes, there are plenty of lenders ready to offer you a car loan. Still, it requires you to be much more vigilant to make a good choice of the lender to move around the city with ease and without any tension. So, where will you go? Of the lenders, HDFC Bank is just the fuel you need to embark on a thrilling car ride.
HDFC Bank, headquartered in Mumbai, rules the roost in the car finance market of India with a share of 26%. Incorporated in 1994, the bank has opened its gates to every segment of the population seeking a custom loan to buy a car of his/her choice. From passenger cars to sports utility vehicles (SUVs), the bank provides a loan on all. The quantum of finance at HDFC Bank is also impressive as you can get a loan amount upto 90%-100% of the on-road price for new cars, depending upon your income and repayment capacity. While for used cars, you can get a loan of upto 80% of the valuation amount as set by the valuer in its report to HDFC Bank.
|Interest Rate||9.25%-11.25% p.a. (Monthly Reducing Balance) for new cars
14.50%-17.50% p.a. (Monthly Reducing Balance) for old cars
|Loan Tenure||1-7 years for new cars
1-5 years for old cars
|Processing Fees||₹2,825-5,150 for New Cars
2% of the loan amount plus ₹200 or ₹5,200, whichever is lower, for old cars
|Foreclosure Charges||No foreclosure allowed within 6 months of loan disbursement.
5%-6% of the principal outstanding from 7-24 months
NIL after 24 months
The reason why HDFC Bank is topping the chart with respect to car loan is due to the fact that the loan disbursal here can go up to as high as 100% of the on-road price, which includes ex-showroom in addition to charges levied on registration, road tax, insurance, accessories, if any. There are either no lender or may be very few that can offer you such as a higher amount. So, if you have zeroed in on your favourite model to buy, the stage is set for an enjoyable car loan journey with HDFC Bank.Faster Loan Disbursal
The processing and disbursal of HDFC Bank Car Loan are very fast and can get executed within 2-3 working days. The hassle-free processing is set to appeal the borrower in you.Fixed Interest Rates
Specifically designed for customers not willing to risk in market fluctuation scenario, the car loan of the bank is offered at fixed interest rates, which mean the rate of interest will remain the same throughout the loan journey. The advantage of the same interest rate is that the EMIs will remain constant. So, with fixed EMI, it becomes easy to plan your overall budget so that you can pay the monthly installments easily.Longer Tenure
With a loan tenure extending to as long as 7 years for new cars and 5 years for older models, you have a sufficient time to pay off the loan availed to buy your dream car. With such longer tenure, the EMIs get lesser and increase your affordability for the loan.Enhanced Branch & ATM Network
One more reason that could prompt you to take a car loan from HDFC Bank is due to its wide network of branches and ATMs across India. With over 4,500 branches and 12,000 ATMs, HDFC Bank is the right candidate to vote for a car loan.
|Age||21-60 years||21-65 years|
|Income||A minimum annual income of ₹ 1,80,000 is required||A minimum income of ₹ 60,000-1,50,000 is needed|
|Job/Business Stability||Must have a work experience of 2 years, with atleast 1 year with the existing employer||Should have been in the business for a minimum period of 2 years|
|Telephone at Residence or Office/Post Paid Mobile Connection||Mandatory||Mandatory|
As expressed implicitly above, the extent of car loan disbursal at HDFC Bank is directly proportional to the income and repayment capacity of a borrower. The eligibility criteria, mentioned above, are just the basic necessities for a car loan and have nothing to do with how much loan amount can be disbursed to you. Actually, it is the Car Loan Eligibility Calculator that decides the loan amount by analyzing your income and savings. However, the first work that the calculator does is the per lakh EMI computation by using the variables like interest rate and loan tenure. A sample of the calculation is presented below.
Amount- ₹ 1,00,000
Tenure- 7 Years
Interest Rate- 9.25%-11.25% p.a.
Per Lakh EMI- ₹ 1,622-1,725
Now comes the function of calculating the eligible loan amount, which arrives after factoring in per lakh EMI and your savings. Assume that you work in a reputed firm at a net income of ₹ 40,000 per month and save around ₹ 22,000. You now wish to apply for a car loan from HDFC Bank. The bank will take your savings as a mean to help you pay off the EMIs and calculate the loan amount accordingly. Based on the given values, a calculation of the eligible loan amount is made below.
Loan amount eligibility
- ₹ 1,00,000 x savings/per lakh EMI - ₹ 1,00,000 x 22,000/1,622= ₹ 13.56 lakhs (Approx.) - ₹ 1,00,000 x 22,000/1,725= ₹ 12.75 lakhs (Approx.)
So, HDFC Bank is ready with a loan amount of ₹ 12.75 lakhs-13.56 lakhs at your doorstep to give you. With this amount, you can buy car models like Hyundai Creta, Mahindra Xylo, Fiat Linea, Mahindra Scorpio and much more.
One calculator to another calculator, this is what you as a watchful car buyer must do. After the eligibility calculator, it's the EMI calculator that takes over the reins from the former. The EMI calculator will provide you the amount of monthly installments, inclusive of both interest and principal amount. Suppose you want to buy a car worth ₹ 8 lakhs, and on your eligibility, HDFC Bank finances you a loan amount of ₹ 6 lakhs for a tenure of 7 years. Now the immediate concern would be to know the EMI amount, right! If it so, then you can refer the table below to know the EMI amount in addition to interest outgo and the total amount of payment.
|Tenure (In Years)||Interest Rate (In % p.a.)||EMI (In ₹)||Total Interest Outgo (In ₹)||Total Payment (Principal+Interest) (In ₹)|
|Identity Proof||PAN Card/Passport/Driving License/Voter ID||PAN Card/Passport/Driving License/Voter ID|
|Residence Proof||Voter ID/Electricity Bill/Telephone Bill/Life Insurance Policy/Driving License/Ration Card||Voter ID/Electricity Bill/Telephone Bill/Life Insurance Policy/Driving License/Ration Card|
|Income Proof||Latest Salary Slip & Form 16||Latest Income Tax Return (ITR)|
|Bank Statement||Bank statement of last 6 months||Bank statement of last 6 months|
|Application Form & Photographs||Required||Required|
All set to apply for HDFC Bank Car Loan? Visit the official website of the bank and click 'Apply Now'. A new page will open and ask you to mention personal and professional details. Make sure you fill all that correctly to prevent any unnecessary discrepancy that can make HDFC Bank delay the loan disbursal. A duly filled in form along with scanned copy of the required documents should be submitted for letting the bank process your loan application. You can also visit any nearest HDFC Bank branch to get the form and submit the same. If you are an existing customer of the bank and have Internet banking facility, you can use the same to apply for a car loan.
All such details, which you have mentioned at the time of filling the form, will be checked thoroughly. There will be executive visits to your residence and office to check your authenticity. If all go well, you will get a car loan cheque from the bank within a week's time.
You can create your HDFC Bank car loan account online after the disbursal of loan. During the course of account creation, you will need to generate your login ID and password to check the summary of your loan account, transaction history, loan statement and much more.
Your job does not end by making the application for a car loan alone. You need to go one step further and check the status of your car loan application by visiting the website and click the link under 'Status of Your Loan Application'. The moment you click it, a page will flash and you just need to fill the vacant spaces against Applicant Name or reference/Proposal Number, Date of Birth or Mobile Number. Filling all these will let you know the exact status of your application. Even a visit to the branch can also let you know the status. But the convenient option would be online.
A call to either of the three 24x7 toll-free numbers-1800 425 4332, 1800 22 4060 and 1800 22 1006 of HDFC Bank will help you fix out any problems and queries you may have with respect to a car loan. Be it checking the eligibility criteria, clearing doubts on the loan processing or disbursal, the customer care executives are ready with a custom solution to make your car loan journey a memorable one.