HSBC Bank is a global investment bank. HSBC Bank was declared the world's seventh-largest bank in the year 2018. HSBC Bank has around 3,900 offices spread across 65 countries.
If you want to buy a car, HSBC offers car loans. It provides you with choices like flexible repayment. In addition, if you apply for a higher loan amount with HSBC Bank, they would offer you a low rate of interest.
The characteristics and features of the new car loan available from HSBC Bank include the following:
They provide car loans at an interest rate of 7.35% per annum.
The value of the car loan should be at least Rs.75,000.
The maximum amount of loan at HSBC is 70% of the sales value.
HSBC provides a loan with a term of 48 months.
The lowest EMI per lakh must be Rs. 1,526.
The documents you will require when you apply for an HSBC loan include ID proof, address proof, a salary slip, a bank statement, and a car quotation.
HSBC Bank provides loans for different types of cars, including brand-new passenger cars, sport utility vehicles, and multipurpose vehicles.
The borrower must have a minimum net monthly income of Rs. 20,000.
The minimum ITR for self-employees must be Rs. 3 lakhs.
Additionally, HSBC Bank offers loans for secondhand or pre-owned cars up to 70% of the cost of car insurance.
The HSBC Bank car loan interest rate for 2024 includes the following:
HSBC Bank provides car loans at an annual interest rate of 7.35%.
The value of the car loan should be at least Rs. 75,000.
The maximum amount of the loan must be 70% of the sales value.
The processing fee is 0.40% of the amount of the loan for the HSBC car loan.
The foreclosure charges of a car loan are 2% of the principal amount outstanding.
The panel interest charges are 2% per month.
They charge a part payment of Rs. 250 to Rs. 950/ month.
The documentation charge is Rs. 500/ instance.
They charge Rs. 50/ instance to issue a credit report.
The HSBC Bank car loan interest rate based on the CIC score includes the following:
You will require a minimum CIBIL score of 750 for an HSBC car loan.
When you maintain a higher CIBIL score, your interest rate decreases. As per the CIBIL score of HSBC Bank, the rate of interest is 7.35% per annum. However, you can negotiate with the bank if your CIBIL score is high (750 or above).
HSBC Bank provides a loan with a term of 48 months.
There are many factors that affect the HSBC car loan interest rate. The most prominent of those are as follows:
Earnings
HSBC will sanction your loan amount if your salary is above average. It is because a bigger salary signifies the ability to repay. To apply for a car loan at HSBC Bank, your annual income must be at least Rs. 3 lakhs.
Loan amount
If you ask for a lower amount of loan, your car loan eligibility from HSBC would be higher because the bank understands that you can pay off the loan sooner. As a result, they will be willing to credit the amount of the loan to your account.
Term of repayment
Your eligibility to apply for a car loan reduces if you select a longer repayment term. As the bank perceives that your ability to repay the loan is less. A longer tenure for repayment results in lower EMIs, and the bank might assume you will not be capable of paying higher EMIs. As a result, the bank might be unwilling to sanction your loan amount.
Credit score
HSBC considers credit score while deciding to sanction your car loan. Most lenders believe a credit score of 750 or higher to be healthy.
The eligibility criteria for a car loan varies from bank to bank, though some requirements may be common. For an HSBC car loan, the applicant must meet the following criteria:
Salaried individuals -
The age of the individual must be 21 to 70 years.
The individual must have a net monthly income of Rs. 20,000.
Must be employed for at least a year.
The income eligibility of salaried individuals depends on Form 16 and the salary slip.
Self-employed individuals -
The age of the individual must be 21 to 75 years.
The minimum ITR of the individual must be Rs. 4 lakhs to 18 lakhs for the selected car model.
The individual must be working for at least 3 years.
The applicant must submit audited financials, IT returns for the previous two years, and calculated income.
The process of applying for a car loan at HSBC Bank is as follows.
For existing customers:
If you are an existing customer of HSBC Bank, you can apply for a car loan online and receive pre-approved offers at low-interest. The bank will immediately credit the loan amount to your account.
For new customers:
You can apply for a car loan online and download an application form or visit the nearest branch.
At any time you specify, an HSBC Bank representative will visit your location to collect the filled-out application and all required documentation for verification.
After you negotiate with them, the car loan interest rate and term are agreed upon and sent to you for approval.
The HSBC Bank will deny your car loan application if there are any inconsistencies in the data provided by you.
To negotiate with HSBC Bank for the best car loan interest rates, do the following:
You can negotiate with the bank more effectively if you regularly record your credit score and pay off any outstanding debts. If you intend to borrow money soon, ensure a uniform payment history of at least six months.
A high down payment allows you to negotiate more effectively. The more you borrow, the more a lender can lose if you do not repay what you owe. You can borrow less money and possibly get a lower interest rate if you put down more money or trade in a car.
No, HSBC Bank offers a loan of 70 per cent of the cars value for new cars and for second-hand cars, they offer 70 per cent of the insurance value.
You cannot sell your car to any seller before getting a NOC from HSBC Bank. The NOC is only available after loan repayment or foreclosure.
HSBC Bank provides a loan with a term of 48 months.
HSBC Bank provides car loans for most multi-utility vehicles, sports utility vehicles, and passenger cars sold in India for personal use.
Car loans are secured loans. Therefore, you are not required to provide any collateral.
You must maintain a credit score of 750 or higher for HSBC to sanction your loan.
HSBC Bank offers a car loan at an interest rate of 7.35% per year.
HSBC offers car loans with terms of up to 7 years.
For a car loan, HSBC charges a processing fee of up to 0.40% of the loan amount.