HDFC Car Loan Interest Rate

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

• Upto 7 years 100% On-Road Finance
• ZipDrive-Instant New Car Loan
• Custom-fit Car Loans: Perfect way to get your perfect car the way you want it
• Preferred Pricing for HDFC Bank customers
• Zero foreclosure charges: Zero Foreclosure after 24 months of repayment
• Flexible Repayment
• 1 out of every 3 Cars is Financed by HDFC Bank
• Quick and easy Processing and Approval
• Step-Up / Balloon EMI Options
• Top-up Loans after 9 months

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.

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

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 ₹ 3 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 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.

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 ₹ 1,860 per lakh loan amount at lowest car loan interest rate of 8.65%. 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.

• 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 ₹ 7,00,000 to be paid back over 5 years at an interest rate of 8.65%. Your monthly payments for this loan after applying the above formula would be ₹ 14,412 for 5 years.

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 5% from 13-24 months, 3% after 24 months.

Processing Fee - HDFC Bank asks for a processing fee of 0.50% of loan amount. Min. ₹ 3,500 and Max. ₹ 8,000 with applicable service tax.

• 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

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.

✅What is car loan interest rate offered by HDFC Bank ?

As per current interest rates, HDFC car loan interest rates are in the range of 13.75%to 16.00%.

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

Lowest EMI per lakh is ₹ 945 for HDFC Bank for a loan availed at an interest rate of 13.75% 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 processing fee is charged by HDFC Bank on car loan?

HDFC Bank charges a processing fee of 0.50% of loan amount Min.₹ 3,500 and Max. ₹ 8,000 with applicable service tax.

✅How much car loan I can borrow from HDFC Bank?

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

✅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 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.