HDFC Used Car Loan
HDFC Used Car Loan lets you finance a pre-owned car at an interest rate starting from 13.75% p.a., with funding of up to 100% of the car's value. HDFC Bank asks for no guarantor and offers a repayment tenure of up to 60 months.
HDFC Used Car Loan Interest Rates and Charges
Interest Rate (Monthly reducing balance) | 13.75% p.a. onwards |
Processing Fees | 1% of the loan amount (minimum of Rs.3,500 and maximum of Rs.9,000) |
Pre-Closure Charges | Within 1 Year: 6% of the principal that is outstanding. 13 Months – 24 Months: 5% of the principal that is outstanding. Post 24 Months: 3% of the principal that is outstanding. |
Loan Tenure | Up to 60 months |
Guarantor Requirement | No guarantor required |
Documentation Charges | Rs.650 per case |
RTO Transfer Charges | At actuals |
Duplicate No Due Certificate | Rs.250 per instance |
CIBIL Charges | Rs.50 |
Payment Return Charges | Rs.450 per instance |
Part-Payment Charges | Within 24 Months: 5% of the part-payment amount. Post 24 Months: 3% of the part-payment amount. Allowed a maximum of twice during the loan tenure, once every year, capped at 25% of the principal outstanding. |
Delayed Payment Interest | 18% p.a. (1.50% per month) charged on overdue EMI amounts. |
Registration Certificate (RC) Collection Charges | Rs.600 per case, refundable if the request is cancelled. |
Note: The interest rates are effective from 25 August 2026.
Features & Benefits of HDFC Used Car Loan
- Easy documentation: Loan approval is based just on proof of identification and residence. As part of the process, income documents or related proof are not required.
- Great Value: Assured funding of up to 100% of the used car's on-road price.
- Customer Centric: Transparent functioning and fixed interest rates. Very nominal down payment. EMI repayments are not affected by fluctuation in the financial market.
- High Loan Amount: Up to Rs.2.5 crore may be provided as a loan.
- Car Age: When the loan matures, the age of the car should not be more than 10 years old.
- Repayment Tenure: The repayment tenure of the pre-owned car loan is up to 5 years.
How to Calculate HDFC Used Car Loan EMI on Bankbazaar.com?
With the friendly 'Used Car Loan EMI Calculator' tool, it's a simple and quick process to calculate the EMI applicable on your overall loan amount. Simply, fire up your basic computer skills, grab a cup of coffee and dedicate the next 30 seconds of your life for some sweet EMI calculation with the following steps-
- Access the 'Used Car Loan EMI Calculator' tool.
- Note the two scales presented before you? One is marked 'Loan Amount' and the other, 'Tenure'. Herein, select the loan amount and the tenure applicable to you on these scales.
- Next, insert the applicable interest rate on your pre-owned car loan in the field marked 'Interest Rate in %', similarly insert the applicable processing fee in the field marked 'Processing Fee (% of loan amount)'. Note that default values are already populated here- change them accordingly.
- Click on the 'Calculate' button to complete the process.
- Displayed before you are the complete breakup of the total interest due, monthly EMI and other relevant details. If you scroll down the page further, you will find a graphical representation titled 'Your Amortization Details (Yearly/Monthly)' that details the amortization information pertaining to your second hand car loan.
Eligibility Criteria for HDFC Bank Used Car Loan
The following fundamental requirements establish your eligibility for the used car loan,
For Salaried Employees-
- Minimum age of 21 years (at the loan application stage) and maximum age of the applicant must not exceed 60 years (at the end of loan tenure).
- Must have a minimum of 2 years work experience, with a minimum of 1 year with the current employer.
- Annual income must not be lesser than Rs.1,00,000.
- Should have a landline telephone connection at his/her residence.
For Self Employed Individuals (Sole Proprietorship)-
- Minimum age of 25 years (at the loan application stage) and maximum age of the applicant must not exceed 65 years (at the end of loan tenure).
- Must have a minimum of 3 years of experience in the current business establishment.
- Annual income must not be lesser than Rs.60,000.
- Should have a landline telephone connection at his/her residence.
For Self Employed (Partnership Firms)-
- Annual income must not be lesser than Rs.60,000
- Should have a landline telephone connection at his/her residence. A post-paid mobile number that is at least three months old is also acceptable in specific cases.
- Annual business turnover of Rs.4,50,000
For Self Employed (Private Limited & Public Limited Companies)-
- Annual income must not be lesser than Rs.60,000
- Should have a landline telephone connection at his/her office.
For Self Employed (Hindu Undivided Family- HUF)-
- Annual income must not be lesser than Rs.60,000
- Should have a landline telephone connection at his/her residence. A post-paid mobile number that is at least three months old is also acceptable in specific cases.
- The 'Karta' should be the co-applicant in the case of HUF.
Essential Documentation Required at Loan Application
- Proof of Age: Herein, any or some of these may be requested- PAN Card, Voter's ID, Passport, Driving license, Photo ration card with DOB, Employer certificate/ID, School or College leaving certificate. For proprietorship or partnership firms- Partnership deed, Memorandum and Articles of Association / Certificate of incorporation.
- Proof of Identity: Herein, any or some of these may be requested- PAN Card, Voter's ID, Passport, Driving license, Photo ration card with DOB. For proprietorship or partnership firms- Partnership deed, Memorandum and Articles of Association / Certificate of incorporation.
- Proof of Income: Herein, any or some of these may be requested- Latest salary slips, Form 16/recent ITR, Previous ITR with advance tax payment challan, Latest IT assessment order, HDFC bank corporate salary account statements for salary credits of over Rs.8000 for 3 months. For proprietorship or partnership firms- Latest ITR and latest audited Balance Sheet along with Profit and Loss Account.
- Proof of Residence: Herein, any or some of these may be requested- Passport, Driving license, Photo ration card with DOB, Telephone and Electricity bills, Credit Card statements, Employer certificate/ID. For proprietorship or partnership firms- Telephone and Electricity bills, Partnership deed, Memorandum and Articles of Association / Certificate of incorporation.
- Proof of Signature: Herein, any or some of these may be requested- Passport, Driving Licence, Credit Card statements with copy of Credit Card, Banker's verification, Copy of margin money paid to the bank. Same documents apply for proprietorship or partnership firms too.
Summary
HDFC Used Car Loan offers financing for a pre-owned car with high funding, no guarantor and a repayment tenure of up to 60 months, backed by simple documentation for salaried and self-employed applicants. Interest rates and charges are detailed above, and eligibility depends on your age, income and employment type. Use the Used Car Loan EMI Calculator on BankBazaar to estimate your EMI before you apply.
FAQs on HDFC Bank Used Car Loans
1. What is the HDFC Used Car Loan?
The HDFC Used Car Loan is a financing option from HDFC Bank that lets you buy a pre-owned car with a fixed repayment tenure and no guarantor required. It funds a portion of the used car's on-road price and is open to salaried and self-employed applicants. The loan is repaid through monthly instalments (EMIs).
2.Why should I choose HDFC Bank for a used car loan?
HDFC Bank evaluates and approves HDFC Used Car Loan applications quickly, with a transparent and customer-centric process. The bank offers competitive used car loan interest rates and minimal documentation. This makes it a convenient choice for financing a pre-owned car.
3.Who is eligible for the HDFC Used Car Loan?
Salaried individuals, self-employed individuals, partnership firms, private and public limited companies, HUFs and trusts can apply for the HDFC Used Car Loan. Salaried applicants must meet HDFC Bank's age and work-experience criteria, while self-employed applicants must meet its business-vintage and income requirements. The full eligibility criteria are listed in the section above.
4.How much loan amount will HDFC Bank grant for a used car?
The loan amount HDFC Bank sanctions for a used car depends on the vehicle's valuation, its age, and the applicant's income and credit profile. HDFC Used Car Loan funds up to the percentage of the car's on-road price stated in the details above. A stronger credit score and stable income can improve the loan amount you are offered.
5.What car models can I buy with an HDFC Used Car Loan?
You can use the HDFC Used Car Loan to buy any used car available in the market, with no restriction on brand or model, as long as the vehicle meets the bank's maximum car-age criteria at loan maturity. This covers popular hatchbacks, sedans and SUVs from various manufacturers. The car's condition and valuation are assessed during loan approval.
6.What documents are required for the HDFC Used Car Loan?
You need to submit proof of age, identity, income, residence and signature to apply for the HDFC Used Car Loan. Accepted documents include PAN Card, voter's ID, passport, driving licence, income proof and residence proof, as listed in the documentation section above. Self-employed applicants must also submit business documents such as a partnership deed or certificate of incorporation.
7.How do I calculate my HDFC Used Car Loan EMI?
You can calculate your HDFC Used Car Loan EMI using the Used Car Loan EMI Calculator on BankBazaar by entering your loan amount, tenure, interest rate and processing fee. The calculator instantly shows your monthly EMI, total interest payable, and an amortisation schedule. This helps you plan your repayments before you apply.
8.Is a guarantor required for the HDFC Used Car Loan?
No, HDFC Bank does not require a guarantor for the HDFC Used Car Loan. Approval is instead based on the applicant's documentation, income and credit profile. This keeps the application process simpler for eligible salaried and self-employed borrowers.
9.Can I borrow an additional loan against my existing HDFC used car loan?
Yes, HDFC Bank allows you to refinance your existing used car by borrowing an additional loan against its current value, even while you continue using the car. This option is generally available once you have maintained a clear repayment track record on your current HDFC Used Car Loan. The additional amount you can borrow depends on your income and repayment history.
10.What is the maximum tenure for the HDFC Used Car Loan?
The HDFC Used Car Loan offers a repayment tenure of up to the maximum period stated in the loan details above, giving you flexibility to choose a tenure that fits your budget. A shorter tenure reduces the total interest paid, while a longer tenure lowers the monthly EMI. Use the Used Car Loan EMI Calculator to compare tenures before applying.
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