HDFC Car Loan: The Most Affordable and Feasible Option to Finance Your Car

There comes a point in our life when we should buy a car and say a goodbye to the public transport. I believe you must have saved some amount of money and the same amount of money can be used to pay your down payment. After working so hard, you too deserve to have a stylish car of your own, which you can use to go to any place you want to. A car loan is the perfect option for you to finance your car dreams. With a HDFC Car loan you can now buy a car of your dreams. The product can be availed by any applicant irrespective of a salaried individual or a self-employed person.

Salaried employees and self-employed individuals can secure a loan amount up to 3 and 6 times of their annual income respectively.  HDFC bank finances passenger as well as multi-utility vehicles (MUVs) for a tenure up to seven years. This article will provide you with every important information about the product.

HDFC Car Loan Eligibility:

A car loan seeker has to first meet the eligibility criteria set by HDFC bank in order to secure finance for buying a car. The norms of eligibility for different applicants have been given below.

Salaried Employee-

• Salaried employees employed in reputed private limited companies or any public sector undertakings are eligible to apply for this product.
• The applicant must be at least 21 years old when the loan is applied and must not be more than 60 years of age when the loan term expires.
• It is important to have a work experience of a minimum of two years. He/she should be employed with the current employer for a period of at least one year
• The applicant should earn a minimum annual income of ₹ 2,50,000. This can include the income of the co-applicant or spouse
• Having a post-paid mobile or a telephone is important

Self employed individual (Sole Proprietorship)-

• Self proprietors who are engaged in the business of trading, manufacturing and services are eligible to apply.
• The applicant must be at least 21 years old when the loan is applied and must not be more than 65 years of age when the loan term expires.
• The business must be stable for a minimum of two years
• The annual income requirement is at least ₹ 2,50,000.

Self employed (Partnership Firms)-

• This will include self-employed partners who are engaged in the business of trading, manufacturing and services
• A annual turnover of at least ₹ 2,50,000 is required

Self employed (Private Limited Companies) and Self employed (Public Limited Companies)-

• This will include any applicant who owns a private sector company which is dealing in the business of trading, manufacturing and services.
• A turnover of at least ₹ 2,50,000 per annum

Documents needed for a car loan:

Identity Proof- PAN Card, Voter ID Card, Passport, Driving License

Proof of Income-  The applicants are required to submit the below documents as a proof of their income.

• Salaried employee: A salary slip along with Form 16
• Self employed individual (Sole Proprietorship): Latest Income Tax Returns
• Self employed (Partnership Firms): Audited Balance Sheet, latest two years Income Tax returns and Profit and loss account of the last two years
• Self employed (Private Limited Companies): Audited Balance Sheet, P&L account of the last two years and Income Tax returns of the latest two years
• Self employed (Public Limited Companies): Audited Balance Sheet and P&L account of the last two years

Proof of Address-

• Salaried employee and Self employed individual (Sole Proprietorship):  Driving license/Telephone Bill/Ration card/Life insurance policy/passport copy/Voter card/ electricity bill/PAN Card
• Self employed (Partnership Firms), Self employed (Public Limited Companies) and Self employed (Private Limited Companies): Sales Tax certificate/Electricity Bill/Telephone Bill/SSI registered certificate/Shop & Establishment Act certificate

Bank Statement: You also require a bank statement of the previous six months

HDFC Car Loan Interest Rate and Processing fee

It is very important to secure the best Car loan interest rate from the bank in order to have a smooth and hassle free loan journey. The interest rate you get from the bank will depend on the segment of the vehicle you intend to purchase. The current interest rate charged for a new car loan is 11.50-13.75%. HDFC also charges a processing fee of 0.40% of the sanctioned loan amount along with the applicable services taxes.

HDFC Car Loan EMI Calculator

It is very important for you to have a clear knowledge about the EMI amount you will be paying to HDFC so as to repay your loan. In case you don’t pay heed to the EMI amount you can end up shaking up your monthly budget. By using this calculator you can easily know about the amount your require, the EMI amount you have to pay every month along with the processing fee you will have to give to the bank. You have to simply feed in certain details regarding the car model, your profession, monthly income and date of birth along with other information.

Now you received the essential information about HDFC car loan, you can decide whether you want to avail the product or not. If yes, approach the nearest HDFC bank branch as soon as possible.