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HDFC Bank Car Loan-Fees and Charges


Fees and Charges
Processing FeesRs.3,000 to Rs.10,000
Foreclosure Charges
  • Before 1 year from 7th EMI – 6% of principal outstanding
  • Within 13 months to 24 months from 1st EMI – 5% of principal outstanding
  • After 24 months from 1st EMI – 3% of principal outstanding
Documentation ChargesRs.630 per case
Part-payment Charges
  • Within 13 months to 24 months from 1st EMI – 5% on the part-payment amount
  • After 24 months from 1st EMI – 3% on the part-payment amount
Overdue EMI Interest2% per month
Cheque Swapping ChargesRs.500 per instance
Loan Rebooking/reschedule chargesRs.1,000
Duplicate no-due certificate/no-objection certificateRs.500 per instance
Cheque/ECS/SI Return ChargesRs.550 per instance
Collateral ChargesRs.475 per case

HDFC Bank Car Loan – Eligibility Criteria

Salaried Individuals

  • Aged between 21 years and 60 years
  • Employed for a minimum of 2 years with at least 1 year with the current employer
  • Earn at least Rs.3 lakh p.a.
  • Have a telephone/post-paid mobile

Self-Employed Individuals (Sole Proprietorship)

  • Should be in the business of trading, manufacturing, or services
  • Aged between 21 years and 65 years
  • Should have been in business for at least 2 years.
  • Have an annual income of at least Rs.3 lakh

Self-Employed Individuals (Partnership Firms)

  • Self-employed partners in the manufacturing, trading or services business
  • Should have a turnover of at least Rs.3 lakh p.a.

Self-Employed Individuals (Private Limited Companies)

  • Owners of private companies in the manufacturing, trading or services business
  • Should have a minimum annual income of Rs.3 lakh

Self-Employed Individuals (Public Limited Companies)

  • Directors in public limited firms in the manufacturing, trading or services business
  • Have earnings of at least Rs.3 lakh p.a.

Factors Affecting HDFC Bank Car Loan Eligibility

The eligibility for availing a HDFC Bank car will depend on the below-given factors:

  • Income – If your income is on the higher side, there are good chances of your eligibility for HDFC Bank car loan being higher. This is because a higher income indicates higher repayment capacity. To be eligible for HDFC Bank car loan, your yearly income should be at least Rs.3 lakh.
  • Loan amount – Your eligibility for a car loan from HDFC will be higher if you apply for a lower loan amount simply because if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to lend to you.
  • Repayment tenure - Choosing a longer repayment tenure can lower your eligibility for a car loan as it might give an impression to the bank that your ability to pay the loan is lower. This is because longer repayment tenure results in lower EMIs and the lender may tend to think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
  • Credit score – This is an important factor that most banks, including HDFC Bank, consider when determining your eligibility for a car loan. A credit score of 750 and above is considered a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and hence, your eligibility will be higher.
  • Relationship with the bank - As stated earlier, HDFC Bank offers instant car loans to their existing customers through the ZipDrive feature. This feature allows HDFC Bank customers to can avail loans instantly, at their convenience, with negligible documentation. This indicates that your relationship with the bank is an important factor while determining your eligibility.
HDFC CAR LOAN

How to Increase Your Eligibility for HDFC Bank Car Loan

  • Opt for a shorter tenure – When you choose a shorter repayment tenure, the EMI that you will be paying each month will be higher. This is an indication of your higher repayment capacity which will lead to banks feeling confident to lend to you. So, if you wish to boost your eligibility for a car loan, opt for a shorter repayment tenure.
  • Keep your credit score in check – If you wish to increase your eligibility for HDFC Bank car loan, make sure that you maintain a credit score of over 750. You can use the Free Credit Score tool to check and maintain a healthy credit score. Checking your credit score regularly can let you take corrective measures to improve it if your score is low or give you confidence to approach the bank is it is high.
  • Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and spends. Before banks lend to you, they will check how much percentage of your earnings goes in paying your debts and a low debt-to-income ratio will be an indication of your high repayment capacity. To enhance your eligibility for a car loan, you should ensure that you maintain a low debt-to-income ratio.
  • Apply for a loan for a lower amount – By applying for a loan for a lower amount, you can increase your eligibility for HDFC Bank car loan. A lower loan amount means that the loan will be repaid sooner and hence, the chances of you being eligible for a loan is higher.

How to Calculate EMI on HDFC Bank Car Loan

Before you avail a car loan from HDFC Bank, you may want to know how much amount you will be paying towards the loan each month. This is simply known as EMIs or equated monthly instalments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses better.

You can calculate the EMI for your car loan by using the below-given formula:

E = P*r*[(1+r) ^n/((1+r) ^n-1)]

In the above formula, E denotes the EMI, P the principal amount, r the interest rate and n the number of years or tenure of the loan.

You can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

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