If a thing that most aspire to own in their lifetime, it would probably be a car because of the excitement and buzz that it generates upon its arrival in the market. A new car on the town and it just sets the people in frenzy mode and prompts them to buy the model as quickly as possible. The riches can book the car at the very instance. But when it comes to the lower income segments, things can be different. They may not pay off the full price at one go and thus fail to bring home a car.
Therefore, they require a bank or any other financial institution that can provide them an attractive loan offer to pursue their car dream. When the names of lenders doing the rounds, HDFC Bank may sit at the top of your mind, right! A premier private lender with a massive network of over 4,200 branches and 12,000 ATMs, HDFC Bank can just be an ally where you would look to apply for your favourite 4-wheeler, won't you? So, what are you waiting for? Dive into the details of HDFC Car Loan below and see whether it can fit into your budget or not.
Why is HDFC Bank the Most Preferred for Car Loan?
HDFC Bank has customized its car loan product to cater to specific requirements of different customer categories, be it salaried, self-employed businessmen, self-employed professionals, etc. With a loan for both new and used cars, it has been able to penetrate effectively and thereby ruling the car finance space with the highest share of 26%, leaving behind its competitors- SBI, ICICI Bank, Kotak Mahindra Bank and others. Let's figure out even more details of HDFC Car Loan.
Interest Rate-8.15%-15.47% p.a. (New Cars)
-14.50%-17.50% p.a. (Old Cars)
Maximum Loan Amount-Upto 100% finance on on-road price (New Cars)
- Upto 80% of the Valuation Price (Used Cars)
Maximum Loan Tenure-Upto 7 Years (New Cars)
-Upto 5 Years (Used Cars)
Processing Fee- Lower of 0.4% of the loan amount or ₹ 10,000 (New Cars)
- Lower of 2% of the loan amount or ₹ 5,000 (Used Cars)
Foreclosure Charges-3%-6% of the outstanding principal loan balance on the date of foreclosure (Both New & Used Cars)
HDFC Car Loan Eligibility-
Borrowers must fulfill the eligibility criteria set by HDFC Bank to get their car loan application approved by the lender. Want to get a sight of those? Take a look at the points below.
Salaried, when they apply for a loan, needs to ensure their age is a minimum of 21 years. While at the time of loan maturity, they are expected to be over 60 years of age. Meanwhile, self-employed can apply for the loan at a minimum age of 21 years. However, they are allowed to have a loan tenure which should be equivalent to the time when they attain the age of 65 years.
An overall work experience of 2 years with a year of service at the current employer is the basic professional criteria that the bank seeks in salaried professionals. But it's not the only professional detail that bank looks for. It even wants the salaried candidate to earn a significant amount, which has set as a minimum of ₹ 1.8 lakhs annually. If you are falling short of the income parameter, there is an option of adding the income of your spouse or co-applicant. Self-employed, on the other hand, required to be in the same line of business for a minimum of 2 years. While they must earn a minimum of ₹ 1,00,000 to get the nod for a car loan.
A post-paid mobile connection or landline is also sought by HDFC Bank for approving a car loan application.
These are the common eligibility parameters that HDFC Bank seeks in a car loan applicant. However, the decision of lending depends on your income and repayment capability in line with the car you want to buy. For example-A car loan application of 20 lakhs may not be approved by the lender with an income of even ₹ 40,000 per month. Because the EMIs here will work out to be over ₹ 30,000, accounting for about 80% of the income and thus render the applicant ineligible for such a loan amount. You need to make sure the proposed EMIs remain within 60% of your monthly income to get the nod.
HDFC Car Loan EMI Calculator-
You can check out the Equated Monthly Installments (EMIs) you have to pay using the car loan EMI calculator. All your work of computing the EMI using the complex mathematical formula can be given a rest with the calculator. You just need to feed loan amount, interest rate and tenure to find the result. For example-A car loan of ₹ 5 lakhs at 9.20% interest rate for 7 years brings forth the EMI, total interest and overall payments of ₹ 8,095, ₹ 1,80,012 and ₹ 6,80,012, respectively.
Hope you have read the information carefully and decided upon the option of HDFC Bank in your pursuit of buying a car. Remember, a successful car loan journey is contingent upon your income and repayment capacity to a larger degree. So, don't ignore them while applying for a loan.