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.
In a cash dominating country like India, credit cards are always criticised. Credit cards are one of those things that people think they know, but they don’t actually understand. However, if used right, credit cards can offer some great benefits. ICICI Bank is one those leading banks which offer credit cards with huge rewards, unmatched benefits and unrivalled features. It has designed a range of credit cards suitable for every lifestyle based on their vast experience over the years. The gemstone and contactless collection of credit cards is specially tailored for people who use their credit cards for day to day expenses. ICICI Coral credit cards are issued under Gemstone and Contactless payment collection and it aspires to provide unique features and benefits like a gemstone. It offers exclusive lifestyle and shopping benefits which offers you more savings and rewards you on every transaction you make. Here’s an overview of the top benefits and features offered by Coral Credit Cards:
ICICI Bank Coral Credit Card
This card lets you enjoy unlimited cash rewards every day and everywhere.
- Avail complimentary Provogue Tie as a welcome gift when you sign up for ICICI Bank Coral Credit Card
- Enjoy 2x cash rewards on dining and grocery shopping at supermarkets.
- Avail 2 complimentary movie tickets every month under the buy one get one movie ticket offer on BookMyShow.
- Save more on your dining bills at over 2100 restaurants across the globe. Enjoy minimum 15% on your dining bills under the Culinary Treats Program.
- Avail 1 complimentary airport lounge access every quarter
- Earn 4 PAYBACK points on every Rs.100 spent on dining and grocery shopping
- Earn 2 PAYBACK points on every Rs.100 spent on all other categories, except fuel.
- Accumulated PAYBACK points can be redeemed for cash or gifts of your choice. 1 accumulated point = Rs.0.25
ICICI Bank Coral Contactless Credit Card
Making transactions was never that easy, simply tap your ICICI Bank Coral Contactless Credit Card to make a contactless payment. Get unlimited rewards and cashback vouchers on your shopping.
- Built-in MasterCard contactless technology to make safe and secure payments at all retail stores.
- Avail 2x reward points on dining and grocery shopping
- Get a Provogue tie as a welcome gift on joining ICICI Bank Coral Contactless Credit Card
- Become a member of Culinary Treat Program and enjoy minimum 15% savings on leading dining outlets and restaurants across 12 major cities of India.
- Get a complimentary airport lounge access every quarter across all MasterCard domestic lounges across the country.
- Save on your fuel spends, get 1% fuel surcharge waiver on all HPCL petrol pumps in India. The offer is applicable on a maximum transaction of worth Rs.4000
- Earn 4 PAYBACK points on every Rs.100 spent on dining and grocery shopping
- Earn 2 PAYBACK points on every Rs.100 spent on all other categories, except fuel.
- Accumulated PAYBACK points can be redeemed for cash or gifts of your choice. 1 accumulated point = Rs.0.25
ICICI Bank HPCL Coral Visa Contactless Credit Card
This card helps you save on your daily commuting. Enjoy 2.5% cashback on fuel spends.
- Get 2.5% cashback and 1% fuel surcharge waiver on your fuel spends across all HPCL petrol pumps in India.
- Avail Rs.100 discount on up to 2 movie tickets booked from BookMyShow every month.
- Become a member of Culinary Treat Program and avail 15% savings on dining at over 2100 restaurants across the country.
- Earn 2 PAYBACK points on every Rs.100 spent on all retail purchases except fuel spends. Accumulated reward points can be redeemed for fuel expenses worth Rs.500.
- Spend Rs.50000 annually and get your annual fee wiz. Rs. 199 waived off.
On an average, Indians save around 10% of their income, with the savings rate forming around 30% of the country’s GDP. This percentage is considered one of the better ones in the world. However, when it comes to actual investments, most people in the country fall on the other side of the spectrum. The reason lies in the simple fact that they consider savings accounts (or at most fixed deposits) as viable investment options. This happens because most of them have little to no idea about other safe investment avenues available to them.
As such, it is important that they learn more about investment avenues that give them better returns and are both safe and secure. This is what serious investors look for when they scout good investment opportunities.
Looking at present financial distribution system and quality of advice available in the market, mutual funds are great investment options that help a lot to investors in realising their financial goals. This article shall look at these safe and stable investment avenues in some detail.
Mutual Funds: Synopsis
A mutual fund can be called a mechanism of pooling resources from the public and investing the collected funds in accordance with the fund objective. In other terms, a mutual fund is an investment scheme which is professionally managed and is run by an assets management company that invests the money of a group of investors in stocks, bonds, and other securities. Investing in a mutual fund is easier than individually buying and selling of shares, stocks and bonds.
Often, people tend to confuse mutual funds with equity investments even though they are both completely different vehicles. Mutual funds offer investment options ranging from 100% debt to 100% equity as well as hybrid products that combine both equity and debt. Mutual funds also came out with Gold Exchange-Traded Fund (ETF) and Gold Funds, which are better investment options as compared to owning physical gold.
Investing in mutual funds helps you to diversify your portfolio across a large number of securities to minimise any risk. As an investor, you can purchase a mutual fund unit that represents your share of holding in a particular scheme. These mutual fund units can be further purchased or redeemed as needed at the current Net Assets Value (NAV) of the fund. These values are not constant and keep fluctuating in accordance with the funds holding. Each investor who has purchased a mutual fund holding shares the gain and loss of the funds proportionately.
Mutual Funds: Benefits
Mutual funds are reliable and safe investment options for people who wish to save and grow their money. They offer several benefits to the investors of which some are discussed here.
- The most significant advantage of investing in mutual funds is that people get access to a professionally-managed and diversified portfolio of equities, bonds and other securities. It would be quite challenging to create such an investment on their own with a small amount of capital.
- Mutual funds permit the investors to put in small amounts of money and still reap the benefits of investing a large pool of cash since many investors jointly hold a mutual fund. They jointly share in the gains and losses incurred by the mutual fund, proportionate to the amount they have invested in the fund.
- Mutual funds are monitored and managed by qualified professionals who create a strong portfolio for the investors. This diverse portfolio consists of stocks, bonds, money market instruments or a combination of all of those financial products.
- Mutual fund investment schemes are also transparent in their nature. The Net Asset Value (NAV) is declared daily and the portfolio of the schemes is also made available every month. There are many agencies that rate the mutual fund schemes depending on risk and reward attached to them.
Mutual Funds: Types
There various types of mutual funds categorised based on factors such as risk, assets management, speciality, benchmark, structure and their investment objectives. Some of the most common types of mutual funds are:
- Open-end Funds: In this type of mutual funds, units are open and available for subscription throughout the year. They are not listed on the stock exchange. Basically, these funds allow investors to keep the investment as long as they want. There are no limits on how much can be invested in the open-end mutual funds.
- Closed-end Funds: A closed-end mutual fund is the one in which holdings can be purchased only during the initial offer period. These mutual funds are also listed on the stock exchange and have a fixed number of shares outstanding. They also operate for a fixed duration. The investors can redeem their units only during the specified dates.
If you love getting rewards then you are going to love American Express. It offers some the best range of credit cards which comes with plenty of rewards, tons of miles and comparatively lower interest rates. Amex has a reputation for its responsive customer service and perks across the country. It offers credit cards for every lifestyle and each of its cards comes with a suite of benefits which are tailor made to serve its different clientele. Amex has categorised its range of credit cards for different categories. For example, if you need to carry a balance or just need shopping benefits then Amex has a specific credit card for it. If you want a luxurious holiday, there’s a card for that too.
Here’s an overview of the kind of perks and benefits you get with an American Express Credit Card:
- Lounge access
Regardless of whether it’s a business trip, leisure trip, flight delay, cancellation or missed connection, lounge access helps you in making your airport experience more delightful. Airport Lounges offers complimentary amenities such as fast Wi-Fi, modern shower facilities, delicious food and snacks, mock tails, cocktails, fully stocked bar and much more. American Express offers you complimentary access to American Express Proprietary Lounges and other Domestic Lounges across the country. You can also get complimentary Priority Pass membership to get access to over 700 VIP lounges in over 120 countries regardless of the class or airline you fly in.
An American Express credit card offers its holder special travel benefits where they can make the most out of the trips in comparatively lower price. Card holders are entitled to special discounts, deals and VIP reservations. The world is your oyster with American Express Platinum Reserve credit card by your side. You have the privilege to travel across the globe with super savings across hotels, flights and more when you book through MakeMyTrip.
- Lodging Elite Tier Membership
American Express offers you stay in leading hotel chains with an oasis of comfort and luxury. Get a membership which complements your astute taste and relish premium environs. In this membership you get complimentary night stay in addition to your booked stay, complimentary dinner or breakfast, special discounts and much more. As a valued member of Amex, you will receive exclusive discounts and attractive offers via email.
- Health and wellness
Your American Express credit card is your partner in all ebbs and flows. Amex credit card holder can avail benefit special healthcare packages and a range of wellness privileges with select hospital partners. You can avail special discounts on routine check-ups, preventive health packages, doctor consultations, Radiological diagnostics services, Non-invasive cardiology, etc. Get medical concierge service where you are entitled to concierge health management services and priority access to top most global medical centres of excellence.
- Concierge services
Be it sourcing you service that you need or arranging an event tickets or making quick reservations for your stay, American Express credit card is a helping hand whenever you require. Concierge services are like a room service at your hotel, whatever you want is just a phone call away. Card holders can avail dedicated Platinum Concierge or 24×7 Card related assistance whenever wherever they want. Enjoy a bouquet of services including arranging a golf round, booking movie or event tickets, delivering flowers and gifts, making dinner reservations and much more.
- Purchase Protection
Purchase Protection is an embedded benefit offered to you by your Amex credit card without any enrolment or additional charges. It helps in protecting the eligible purchases made through your Amex credit card when they’re accidentally damaged, lost or stolen for up to 90 days from the date of purchase. Amex refunds you the money for your damaged item.
Pre-owned cars are a great option if you want the convenience of a four wheeler without spending too much. In fact nowadays banks and lending institutions are offering loans for pre-owned cars so that you do not have to shell out a large amount of money in a single go. HDFC bank is one of the reputed private banks and it offers used car loan with really simple terms and conditions . Even the interest charged on the loan is quite affordable and the repayment terms are flexible. Let us look at the different features of an HDFC used car loan.
You can enjoy triple benefits with a used car loan from HDFC bank:
- Faster loan processing – the loan sanction and disbursal process of this bank is one of the fastest along with easy documentation and doorstep service.
- Competitive pricing – The loan interest rates and charges are very affordable and competitive
- Transparency – There is complete clarity on the loan process and no hidden charges exist. The consumers are given an update on the status of the application of loan at every stage
Features and Benefits of HDFC pre-owned car loans
Managing the money to buy a used car is not easy all the time, but with reputable and reliable banks like HDFC taking a loan for this purpose has got easier. With this bank you can get a loan of about 3 to 6 times of your annual income for all models of cars. This bank also helps you to opt for a good quality car at competitive price from a wide range of used cars uploaded by reliable dealers all over India.
You will be able to get some exclusive features and benefits with an HDFC pre-owned car loan
- You can choose any car within a certain age and manufactured within the country
- You can get a loan of up to 80% of the quoted price.
- The repayment options are quite flexible as you can repay from 12 to 60 months
- You can borrow up to 3-6 times of your annual income
- The loan is available for all models of cars
- The EMIs are easy to pay
- You can also fast track your loan with the plan that is suitable for you
- You can get an additional loan based on your existing bank auto loan
- Special privileges are offered to account holders of this bank
- The maximum used car loan is up to 50 lakhs
Eligibility and Documentation
First check the category that you fit into. It depends on the kind of work that you do, because the requirements of the bank to give you a loan will depend on that
- Minimum age of salaried employees is 21 years and one should be less than 60 years of age at the end of the loan tenure
- You should be employed for at least the last 2 years and a minimum of 1 year with your current employer
- The annual income should be at least 1,00,000 including the income of your spouse
- You should have a telephone at your residence
- Age proof – any one of the passport copy, voter’s ID card, PAN card, photo driving license with birth date, photo ration card with DOB, employer certificate/ID, school/college leaving certificate
- Proof of identity – Any one of this would work. PAN card, passport, photo driving license with DOB, voter’s ID card etc.
- Income proof – Latest salary slip with latest form 16/latest ITR. HDFC bank corporate salary account statement for salary credit above Rs. 8000 for three months
- Address proof – Any one of photo driving license with DOB, photo ration card with DOB, passport copy, electricity bill, telephone bill, credit card statement with copy of credit card, Employer certificate/ID
- Signed verification proof – Any one of it is required. Photo driving license with DOB, photo ration card with DOB, banker’s verification, credit card statement with credit card copy, copy of margin money paid to bank.
Recently there has been a tremendous fall in the gold rate all over India as well as the world over. This in turn has encouraged more and more people to buy gold whether for investment or simply as jewelry. However, whenever you want to buy gold jewelry or solid gold, the first thing that you should ensure is the purity of the metal. This means that you should check how pure the gold that you are buying is. This presents an important question, that what is the method of checking the purity of gold. In order to protect the consumers in the market, the government of India has made it mandatory to get gold jewelry hallmarked in the country. This in turn not only helps in keeping control of the quality and determine the gold rate, but will also protect consumers of the metal from corruption among jewelers.
The Bureau of Indian Standards of BIS act, says that a hallmarking agency will certify the gold rate purity based on the Indian standards. In other words, the gold jewelry being sold in the Indian market will be first evaluated and tested in official centers of hallmarking and then will be certified that the metal used for making the jewelry or the bricks and bars conforms to the Indian and international standards of purity and fineness.
Check for BIS hallmark
The first thing that you should check is whether the jewelry has a BIS hallmark or not. You can check online to see what the hallmark symbol looks like. If any jewelry or gold bar has this symbol it means that it has been checked by the BIS and is certified for purity. At the same time, the jewelry store where you purchase the gold ornaments should also be BIS hallmarked.
Check for Grade of Purity
Different people prefer different levels of purity in gold. Then again in some cases it is not possible to use pure gold because it is very soft. This is the reason that when making diamond and gold jewelry, or gold jewelry with any other precious stones, 18 carat gold is used. The purity of the gold can be ascertained by the number inscribed on the piece of jewelry. This can be studies as below:
999 – 24 carat – pure gold and features the highest gold rate purity
958 – 23 carat
916 – 22 carat
875 – 21 carat
750 – 18 carat
708 – 17 carat
585 – 14 carat
417 – 10 carat
375 – 9 carat
333 – 8 carat
If you are buying gold for investment purposes then it is advisable to buy the gold inscribed with the number 999 which means pure 24 carat gold. Better gold rate purity will fetch you a better price in the market when you try to resell it.
The piece of jewelry or gold bar should carry the logo of the BIS authorizing hallmarking center where the jewelry or gold bar has been hallmarked. You can check on the internet to see the list of hallmarking centers across the country and their individual logos. It may be difficult to remember all the logos, but nowadays with internet access on mobile devices it should not be a major problem.
Year of Making
Along with the numbers there are also alphabets inscribed on the gold ornaments and this alphabetical system has been decided by the BIS. These alphabets represent the year in which the ornament has been hallmarked. For instance, the letter A denotes the year 2000, the letter J stands for 2008, N is for the year 2011 P for the year 2012 and so on. You can check this alphabetical system on the official website of the BIS.
Jewelers’ Identification Mark
All reputable and big jewelers always mark the jewelry made by them with their own identification mark. This will especially be helpful if you wish to return the jewelry to them. Usually you get a better price for gold jewelry if you resell it to the jewelry store from which it has been bought.
Kerala is well-known for its fascination with gold and gold jewelry. In the 1970s, till 2000s whenever Keralites traveled to Gulf countries they returned with large quantities of gold. Those days there were many restrictions on the import of gold and this is the reason that Malayalees bought gold when they went abroad. However, nowadays the restrictions on gold import are more relaxed and the yellow metal is more easily available within the country. Most Indians, including Malayalees, do not consider gold to be for mere ornamentation instead gold is considered a good form of investment. However, if you are considering buying gold for investment then you should consider the gold rate in Kerala at the time of buying.
Where Should you Buy Gold in Kerala?
There are a number of jewelry shops spread across the length and breadth of this South Indian state. All the major cities including Cochin, Thiruvananthapuram and Calicut have a large number of jewelry shops. Even the smaller towns are not far behind in their love for gold and you can find all sizes of shops in the smaller towns as well. The more popular shops include Malabar Gold, Gold Alukkas, Joy Alukkas etc. In fact, gold buyers are literally spoilt for choice when it comes to gold shops in this state. It is a good idea to visit some of the most popular shops in the city that you are in and then engage in some window shopping while you decide the particular shop that you wish to buy from. Make sure that this shop provides some kind of certification like BIS and Hallmark. Otherwise there are many traditional shops in each city which have been passed down from one generation to another and they are equally reliable.
What to check when buying gold in Kerala?
Before you set out to buy gold in this state, you should always check the price. Although the rates of gold will be more or less the same across the state and cities, labor charges are the real catch. Some shops charge more for the making of the ornaments, but this does not matter if you are buying gold bars or biscuits or coins. However, if you are buying ornaments then it is advisable to check the making price of different shops. At the same time, as mentioned above, you should check for purity and wherever possible only opt for hallmarked jewelry.
How gold prices are determined in Kerala?
Gold rate in Kerala largely depends on the international price of gold. Hence if the price of gold rises in the international market, it will rise in Kerala as well and vice versa. If we consider the last few years, the year 2016 has been a good year for people wanting to invest in gold in Kerala and they have got significant returns. In fact, if people in this state sell the gold bought last year in this year then they stand to gain almost 20%. If you are looking for steady returns then gold is a good investment along with being a good diversification saving instrument.
Take into consideration taxation of gold in Kerala
You definitely need to bear in mind that gold in Kerala or elsewhere in the country will be taxed. If you sell gold after three years, there will be a 20% tax with indexation. This means that if the indexation works out to be 10% over two years, your tax rate on the gold that you sell will only be 10%. If you sell gold before three years, you will be taxed according to your tax slab. Hence you will end up paying 10, 20 or 30 percent depending on your tax slab. The higher is the tax slab, the more will be the tax rate on your gold.