HDFC Used Car Loan

Features & Benefits of HDFC Used Car Loan

The salient features and much applauded benefits of the HDFC Bank Used Car Loan are listed below,

• 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.

Apply for HDFC Used Car Loan on Bankbazaar.com

The Bankbazaar portal offers you a comprehensive look into the various available used car loan options that match your specific requirements. Arriving at a choice loan provider becomes easy when the various parameters of a second hand car loan, including interest rate, eligibility criteria and required documentation are compared against other similar loan options to highlight their individual strengths and weaknesses, as applicable on your personal level. Applying for a HDFC Bank used car loan on Bankbazaar.com takes just three co-ordinated steps:

Step 1- On Bankbazaar.com’s homepage, access the navigational menu that is located at the top of the page and select the LOANS menu item. Next, select the USED CAR LOAN option out of the various loan types listed. HDFC Used Car Loan is a prominent menu item here, select the same.

Step 2- On the resultant page, various measurement factors are listed. These include, check for eligibility, confirmation of how much money can be borrowed, eligible loan amount and online loan application. Any of these resources can be used to find your suitability for the HDFC used car loan, while the ‘Apply Now’ link can be utilised to apply for the loan directly.

Step 3- After the submission of the online application, you will receive an instant e-approval from Bankbazaar.com. This application is next transferred to HDFC bank from wherein a customer support executive will get in touch with you within a short duration of time. Meanwhile, you can track your application through SMS alerts and email notifications.

Applicable Interest Rates for HDFC Bank Used Car Loan

Currently, the applicable HDFC used car loan interest rates, correct up to December 2014 are listed herein,

• 15.25% to 17.75% (60 months)
• 15.25% to 17.75% (48 months)
• 15.25% to 17.75% (36 months)
• 15.75% to 18.25% (24 months)
• 15.75% to 18.25% (Upto 12 months)
• Corporate Rates 13.50% to 14.25%.

Kindly note that the interest rates listed above comply with the popular ‘reducing balance’ model.

HDFC bank offers some of the most competitive interest rates, in the Indian context, when it comes to second-hand car loans. The bank also offers foreclosure and part-payment options (subject to compliance with set regulations) to fall in line with their customers’ express requirements. Note the fact that a pre-owned car loan commands a higher interest rate than a new car loan? - The HDFC used car loan isn’t different in this aspect. The logic here is that the principal loan amounts lent as second-hand car loans are a lower number than their new car counterparts, plus there is always the possibility that the car owner might opt for the pre-payment or foreclosure option as the loan amount is much more manageable. Thus, banks are naturally protecting their investment and extracting a profit margin by imposing a marginally higher rate of interest.

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-

1. Access the ‘Used Car Loan EMI Calculator’ tool.
2. 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.
3. 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.
4. Click on the ‘Calculate’ button to complete the process.
5. Displayed before you is 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 license, 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.

Popular FAQ Concerning HDFC Bank Used Car Loans

Why choose HDFC Bank for pre-owned car loan?

The following reasons suffice as the strongest arguments in favour of the HDFC used car loan-

• Loan applications are evaluated and approved in record time.
• The applicable HDFC used car loan interest rates are very attractive.
• Transparent and completely customer centric loan application and disbursement process.

Who can avail the HDFC used car loan?

• Salaried individuals in the age group of 21 to 60 years.
• Self-employed individuals in the age group of 21 to 65 years.
• Partnership Firms
• Public & Private Ltd. Companies
• HUFs and Trusts

How much used car loan will likely be granted to me?

Usually, the loans on offer fund upto 80% of the used car’s on-road price.

What car models can I purchase with my allotted used car finance?

Any automobile available in the market. There are no restrictions in terms of the type and brand of vehicle available on the menu. Popular brands include Maruti-800, Omni, Zen, WagonR, Tata Indica, Indigo, Honda City, Hyundai Santro, Ford Ikon, Toyota Corolla, Skoda Octavia, etc.

Can I borrow an additional loan over my allotted second-hand car loan?

This activity is known as ‘refinancing’ and it is definitely possible. The value of the car can be encashed to meet your immediate monetary requirements, even while you actively continue to use the car. Ideally, you can avail upto 3 times your annual salary if you are a salaried professional and upto 6 times your annual salary if you are self-employed. However, a clear repayment track record of 12 months or more on your current HDFC used car loan is a mandatory prerequisite.