HDFC Bank Car Loan

About HDFC Bank Car Loan

Owning a car was once a dream for many people. But now you can turn your wish into a reality with HDFC car loans. HDFC Bank provides instant car loans anytime and anywhere with flexible repayment options.

They provide car loan plans at low-interest rates for used and new cars. You should apply for an Xpress car loan from HDFC Bank and use its doorstep service. Here's everything you need to know about a car loan from HDFC.

Features and benefits of HDFC car loan

Below are the features and benefits of an HDFC car loan:

• Loan Amount: Get loans of up to 10 crores on various cars and multi-utility vehicles. Take benefit of up to 100% on-road financing on your New Car Loan.

• Repayment Period:The repayment period of a car loan from HDFC Bank ranges from 12 to 84 months.

• Ease of documentation: HDFC Bank does not require physical verification or documentation to approve your Xpress car loan.

• ZipDrive-Instant Auto Loan: ZipDrive Instant New Car Loan is available exclusively to HDFC Bank customers. Customers can get the loan amount quickly from the car dealer via net banking, anywhere and anytime.

Factors Affecting HDFC car loan interest rates

Below are the factors affecting HDFC car loan interest rates:

Credit Score: Credit score determines whether you can pay the EMIs on time or not. It significantly alters your loan amount and makes you eligible for the lowest car loan interest rate.

Income: If your income is above average, your chances of qualifying for an HDFC Bank car loan are better. Your annual income must be at least Rs. 3 lakh for an HDFC Bank car loan.

Relationship with the bank: HDFC provides immediate car loans to existing customers via the ZipDrive feature.

Therefore, your connection with the bank is a significant factor in determining your eligibility.

How to apply for an HDFC Bank car loan?

Steps to apply for an HDFC Bank car loan:

1. Visit the official website of HDFC and tap on Apply Now.

2. Provide your professional and personal information. Fill out everything correctly to avoid any unnecessary discrepancies.

3. Allow the bank to process your loan application by submitting the complete form with the necessary documents.

4. You could also obtain the loan application form and submit it at any HDFC branch near you. If you are a current customer of HDFC and have access to Internet banking, you can use it to take out a car loan.

5. HDFC will thoroughly review the data. Executives will pay visits to your home and office to verify your authenticity.

6. If everything goes well, you will receive a car loan cheque from HDFC within a week.

Eligibility criteria for applying for a car loan

Here are the eligibility criteria for securing car loans from HDFC Bank:

• Salaried individual between the ages of 21 and 60:

  • Employed for at least two years, including at least one year with the current employer

  • Earn at least Rs.3 lakh per annum.

  • Have a postpaid mobile phone or a telephone

• Sole Proprietorship:

  • Between the ages of 21 and 65

  • The company should have been in business for a minimum of two years.

  • Have a minimum annual income of Rs.3 lakh

• Partnership Firms:

  • Self-employed partners in the trading, manufacturing, or service industries

  • Should have a yearly turnover of at least Rs.3 lakh

• Private Limited Companies:

  • Private company owners in the trading, manufacturing, or service industries

  • Must have at least Rs.3 lakh annual income

• Public Limited Companies:

  • Directors who are in the trading, manufacturing, or services industries

  • Have a yearly salary of at least Rs.3 lakh.

Documents required for a car loan

You will need the following documents for applying for your car loan:

Salaried individual

• Address and identity proof (Anyone)

  • Driving license

  • Passport

  • Aadhaar Card

  • Voter ID

• Income proof such as Form 16 and recent salary slips

• Previous six-month bank statement

Sole Proprietorship

• Address and identity proof (Anyone)

  • Driving license

  • Passport

  • Voter ID

• Income proof- Recent ITR

• Previous six-month bank statement

Partnership Firms

• Income proof (All documents)

  • P/L Statements for the previous two years

  • Balance Sheet

  • Company ITR- Last two years

• Address proof: (Anyone)

  • Electricity Bill

  • Phone Bill

  • SSI Registered Certificate

  • Shop and Establishment Act certificate

  • Sales tax certificate

Private limited and public companies

• Income proof (All documents):

  • Balance Sheet

  • P/ L Account for the previous two years

  • Company ITR- Last two years (only for private companies)

• Address proof (Anyone)

  • Telephone bill

  • Electricity bill

  • Shop and Establishment Act certificate

  • SSI Registered Certificate

  • Sales Tax Certificate

• Previous six-month bank statement

Pros and cons of taking out a car loan

Taking out a car loan comes with advantages and disadvantages. Let's review them quickly so you can make an informed decision:

Pros

• Credit score: You can take out a car loan to improve your credit rating. You can do it easily by making all of your payments on time.

• Obtain a better car: Depending on the type of car you want, financing may allow you to get a higher-end option that fits within your budget.

Cons

• Interest: With depreciation, interest, and fees, you may wish you had bought the car outright.

• Depreciation: Frequently, the car's value depreciates faster than the loan repayment. It leads to lowering the car's worth.