The Housing Development Finance Corporation Limited (HDFC) Bank offers competitive car loan options for its customers. A wide range of loan options are available for applicants to choose from where the interest rates are customised as per the applicant’s financial history. HDFC Bank is known as one of the most customer-friendly banks and the applicant can get his car loan approved at low interest rates in a matter of few minutes.
Most banks offer similar interest rates on car loans for a specified tenure but HDFC Bank offers highly flexible interest rates and tenure period. As a matter of fact, HDFC Bank offers the highest tenure of 84 months to its customers to repay the car loan. Let us peruse the interest rates and charges for the HDFC Bank car loan.
HDFC Car Loan Interest Rates and Fees*
|Interest Rate||Starting from 9.35%|
|Processing Fees||Rs 10,000 or 0.4% of the sanctioned car loan, whichever is lower|
|Foreclosure Charges||3-6% depending on the period of the loan (no foreclosure for car loans sanctioned less than 6 months before)|
|Documentation Fees||Rs 600 every time|
|Penalty for Late Payment||2% each month|
|Financing Quantum||Up to 100% of the on-road price of your car depending on the customer’s profile.|
*The facts and figures provided above are indicative and liable to change periodically.
Car Loan Amount
The amount sanctioned by the bank for buying the car is known as the car loan amount. This amount depends on the income of the applicant and the net on-road price of the car. The car loan interest rates vary from one customer to another.
On new cars, the bank provides the loan amount of up to 100% of the on-road price which can be up to 6 times the annual income of the applicant and up to Rs 1.5 Crores.
For pre-owned cars, loans of up to 80% of the price of the car can be sanctioned that can be up to a maximum of Rs 50 Lakhs.
HDFC Bank New Car Loans Interest Rates & Charges
|Charges||New Car Loans|
|Documentation Charges*||Rs. 600 per case|
|Foreclosure charges*||No foreclosure is allowed before 6 months of sanctioning of the loan.|
|6% of the outstanding loan amount for preclosures within an year from 7th EMI|
|5% of the outstanding loan amount for preclosures within 13-24 months from 1st EMI|
|3% of the outstanding loan amount for preclosures after 24 months from 1st EMI|
|Part-Payment charges*||Part-payment is applicable once 12 EMIs have successfully been paid.|
|Part payment is applicable twice only during the complete loan tenure and at most once in a year. The part payment will not be more than 25% of outstanding loan amount in any case.|
|5% on the part-payment sum in case part-prepayment is within 13-24 months from 1st EMI|
|3% on the part-payment sum in case part-prepayment is after 24 months from 1st EMI|
|Processing fees* (Non- refundable)||0.4% of Loan Amount or Rs 10,000, whichever is lower|
|Loan cancellation||In case of cancellation, the customer shall pay the interest on the loan amount from disbursement date till the refund of disbursement amount. Processing Fee, Stamp duty and Documentation Charges are non-refundable and would not be waived off.|
|Collateral Charges*||Rs 450 per case|
|Loan Reschedulement charges/ Rebooking charges||Rs 1,000/- will be charged. If changes are to be made on RC, refundable Security Deposit – non-interest bearing of Rs 5,000 is necessary. The borrower has to provide the transferred Registration Certificate to the bank.|
|LPG/ CNG NOC/ Other Special NOC||Rs 500/-|
|Late Payment Penalty||2% per month|
|Rack interest rate||11.50% to 13.75% depending on the segment in which the vehicle lies|
|Stamp Duty (Non-refundable)||The original cost|
|Amortisation Schedule Charges||The customer can download the schedule from E-Delight for free. Rs. 200/- per schedule would be charged at the customer service desk.|
The rate of interest on the car loan varies from 9.35% to 14.29% in case of new cars. The rate of interest is however, higher for pre-owned cars and it varies from 14.50% to 17.50%, depending on the segment in which the car lies. All interest rates are calculated on the monthly reducing balance.
These rates and charges are some of the lowest charges among all banks providing car loans. It is necessary to go through the loan procedure and understand all the requirements, terms and conditions and obligations before opting for the loan.
HDFC Bank car loans are quick to get sanctioned and require very less amount of paperwork. The interest rates are highly competitive and the quote by the bank is worth considering. Taking into account the features and ease with which these car loans get sanctioned, the HDFC car loan is probably, one of the best car loan on offer today.