Car Loan

HDFC Bank offers Car Loan at affordable rate of Interest in India. HDFC Bank is a leading Banks for providing Loan to purchase of New Car, Old Car. HDFC Bank also take over the Car Loan from applicant having with the Banks or Financial Institution. A applicant can apply for the Car loan with flexible tenure upto seven years. HDFC Bank is providing car loan to their borrower at the attractive rate of interest in India. A applicant should have good track record of credit score to apply for car loan. Nonpayment of loan will impact that a car will be taken over by Bank and will be sold to any. So a borrower should pay the loan without any default upto loan completely paid.

Compare Rate of Interest & Processing with Banks

SBI Above 2 lakhs: Rs.200 per lakh.
Bank/Lender Name Car Loan Interest Rate Loan Processing Fees
9.25% onwards 0.50% of Loan Amount +ST Min: Rs.950.00 +ST, Max: Rs.9100.00 +ST
HDFC Bank 9.35% onwards Rs.2825 to Rs.5150 (depends on the loan amount)
ICICI Bank 9.55% onwards Rs.2500 to Rs.5000 (depends on the loan amount)
Axis Bank 9.50% onwards Rs.3500 to Rs.5500
IDBI Bank 9.95% onwards NIL
Punjab National Bank 9.25% onwards 1% of the loan amount. (Max-Rs.6000)
Bank of India 9.25% onwards Rs.500/- plus S.T. or 1% of loan amount. Min: Rs.500 and Max: Rs.10,000
Syndicate Bank 10.1% onwards Up to 2 Lakhs: Rs.1.25 per thousand. Minimum: Rs.125/-

Documents Required for Car Loan

Documents required

  • 1

    Individual Salary

    • 1 Photo for Applicant & Co Applicant
    • PAN Copy - Self Attested
    • Aadhar Copy - Self Attested
    • Employee Identity Card
    • Form 16 ( if available )
    • Bank Statement Last 6 Months
    • Pay Slip Last 3 months
    • Income Tax Filing for two years ( Optional )
    • RC Book & Insurance Copy for Used Car
  • 2

    Other than individual Salary

    • Photo for Director / Partner / Proprietor
    • PAN Copy of the Directors / Partners & Organization PAN Copy
    • Aadhar Copy of the Directors / Partners
    • 1 Year Bank Statement
    • Incorporation Certificate / Partnership Deed
    • Telephone Bill
    • EB receipt of Own house in name of applicant / Guarantor
    • Income Tax Filing for two years ( Optional )
    • MSME Registration / GST Registratioin for Business Proof
    • RC Book & Insurance Copy for Used Car



Collection of Documents


Preparation of Application


Submission of Application


Approval of Persoanl Loan

Frequently Asked Questions

What is car loan?
A bank has lending on purchase of New or used car. Banks / NBFC are lending on small car to Luxury cars.
Can I get a loan to purchase a used car?
Yes. Any one can apply for purchase Used car Loan. Interest rate will be high when comparing to new cars. the loan on purchase of car only cover the price of car itself. Other cost like transfer of registration, etc has to be paid by applicant.
Do need collateral Security for car loan?
No. Car loan is a secured loan, which is hypothicated by the Bank untill the loan completely paid off. No other collateral security is required as car already pledged with Banks. The hypothication will be cancelled upon full paid off the loan
What is the maximum amount of loan that I can avail?
The maixmum loan amount approved by banks may vary from bank to bank. Usually banks approve in the range of 80% to 90% on car road price. some of the Banks lending 100% on ex-show room price.
What documents does required for applying for a car loan?
For applying car loan, self attested KYC documents with Income Proof required to be submitted with application forms. The bank may be ask some of the documents if required
What is the tenure of a car loan?
The tenure of a car loan ranges from 1 year to 5 years. The shorter the loan tenure, the higher is the EMI payable and the reverse is true for longer car loan tenures. Currently, a small number of lenders are engaged in providing car loans for longer durations of up to 7 years.
Can interest rates be negotiated?
Yes, you can negotiate the interest rate applicable to your car loan by leveraging your credit history and prior relationship with the prospective lender. The regular payment of EMIs for previous loan/credit cards you had/have with your prospective lender can fetch you a car loan at a preferred (lower) interest rate.
Can I pre-pay my car loan?
Pre-payment of car loans is allowed by many lenders however there are usually a few terms and conditions attached. For starters, the lenders only allow car loan repayment after you have completed specified loan tenure and there is usually a pre-payment penalty as well. The prepayment penalty charges usually range from 1%-4% of the. It is recommended that you confirm all relevant charges with a bank before you make a pre-payment.

© CopyRights 2017 ClearFilings. All Rights Reserved.

Developed By: SK3INFOTECH