HDFC Car Loan Interest Rate

Last Updated 13th Dec 2018

HDFC Car Loan Interest Rate Dec 2018

5th Dec 2018 – RBI keeps Repo Rate unchanged at 6.50%

HDFC Bank New Car Loan interest rate starts from 8.70% and HDFC Bank Used Car Loan interest rates starts from 13.00% . These are Fixed rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure.

HDFC Car Loan
Features New Car Loan Used Car Loan
Processing Fee 0.40% Max Rs. 10,000 2.00% Min Rs. 5,000
Loan Tenure Upto 7 years Upto 5 years
Lowest EMI Rs. 1,594 per lakh Rs. 2,061 per lakh
Loan Amount Upto 100% of ex-showroom price Upto 80% of market value
Prepayment Charges Not allowed for 6 months; 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months Not allowed for 6 months; 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months

Highest eligibility of up to 100% car finance on a wide range of models

HDFC Car Loan

HDFC Bank gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from HDFC Bank are:

  • Highest eligibility of up to 100% car finance on a wide range of models
  • Instant New Car Loan under Zipdrive scheme for exisiting HDFC Bank customers
  • Maximum loan amount of up to Rs. 3 crore offered at competitive rates and no hidden charges.

HDFC Bank Car Loan Interest Rate

HDFC Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. HDFC Bank offers 100% of ex-showroom price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate HDFC varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. HDFC Bank has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low HDFC car loan rate.
  • Relationship with the Bank: HDFC Bank offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: HDFC Bank vehicle loans are of longer repayment tenure of 7 years.
  • Repayment Capacity: Before giving loan to the borrower, HDFC Bank checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

HDFC Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Eligibility Criteria Eligibility Details
Age 21 years - 60 years
Minimum Annual Income Salaried: Rs. 1.80 Lakhs
Self Employed Professionals: Rs. 0.60 Lakhs
Self Employed Businessmen: Rs. 0.60 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 7 years
Loan to Value Ratio 100% of ex-showroom price

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. HDFC Bank offers auto loan to those who are atleast 21 years old at the time of loan approval and maximum 60 years at the time of loan maturity.

Income: HDFC Bank car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. HDFC Bank asks for net annual income of minimum Rs. 1.80 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from HDFC Bank. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best HDFC car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your HDFC Bank car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: HDFC auto loan amount depends upon your income. HDFC Bank Bank gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your HDFC car loan status online and avial multiple benefits.

HDFC Car Loan Calculator

Car Loan EMI of HDFC Bank is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by HDFC Bank is Rs. 1,594 per lakh loan amount at lowest car loan interest rate of 8.70%. Car Loan EMI of HDFC Bank depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
HDFC EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.

Illustration

You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]

Where,

  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 8.70%. Your monthly payments for this loan after applying the above formula would be Rs. 14,429 for 5 years.

HDFC Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. HDFC Bank allows prepayment of vehicle loan after paying 1 EMI with prepayment Not allowed for 6 months; 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months.

Processing Fee - HDFC Bank asks for a processing fee of 0.40% of loan amount. Max. Rs.10,000 with applicable service tax.

HDFC Bank Car Loan Top up, Balance Transfer

  • HDFC Bank offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from HDFC Bank, subject to your eligibility

Documents required

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car

Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

Frequently Asked Questions on HDFC Car Loan

What is car loan interest rate offered by HDFC ?

As per current interest rates, HDFC car loan interest rates are in the range of 8.70 % to 10.25%.

What is the lowest EMI per lakh on HDFC Bank car loan?

Lowest EMI per lakh is Rs. 1,594 for HDFC Bank for a loan availed at an interest rate of 8.70% and for a tenure of 7 years.

What is the maximum tenure of HDFC Bank car loan?

You can repay your HDFC Bank car loan in a flexible period of 7 years.

How much car loan I can borrow from HDFC Bank?

HDFC Bank offers you 100% of ex-showroom price of car as loan.

How much processing fee is charged by HDFC Bank on car loan?

HDFC Bank charges a processing fee of 0.40% of loan amount Max. Rs. 10,000 with applicable service tax.

Is age an eligibility factor to get car loan from HDFC Bank?

Yes, age is an important eligibility factor to get HDFC Bank car loan as you should be at least 21 years old at loan approval time and 60 years old at loan maturity time.

Are there any prepayment charges on HDFC car loan?

You can take car loan from HDFC Bank with prepayment not allowed for 6 months; 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months.

Can I add my spouse's income while applying for car loan from HDFC Bank ?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.

Compare Car Loan Interest Rates of HDFC Bank with other banks


HDFC Car Loan News - Dec 2018
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.