HDFC Bank is one of the most known and leading bank which has been monumental in shaping the current banking system in India. It was incorporated in August 1994 and rapidly developed to today’s 4,555 branches and 12, 087 ATMs covering 2597 cities and towns. HDFC was the first bank to receive in-principle approval from Reserve Bank of India to set up a bank in the private sector. HDFC offers personal and corporate banking services covering investments, savings and loan products. In this section we will specifically cover used car loans from HDFC. In the present economy, used car sector has expanded phenomenally. Used cars have grown in popularity in form of additional car. In cities people prefer to have smaller cars for within city driving and bigger cars for outside. Buying pre-owned car has one more advantage that it can bring a high end car within a smaller budget. Let us now enumerate the details of Used Car loans offered by HDFC.
Features of Used Car loans
•Up to 100% financing is available for used cars
•Upto 80% of car value can be availed as loan which makes it one of the highest loan value product in this category
•Loan rate is transparent and fixed which gives a clear visibility into future EMIs.
•Up to 2% lower interest is being offered as compared to market
•HDFC also offers lowest down payment
•Minimal documentation is required for availing loan
•One can also check status of loan application online
•HDFC offers doorstep service where their representatives come home to the applicant and carry out all formalities at the comfort of your home
•The age of vehicle should be 7 years for private usage or 6 years for commercial usage
•Fast and hassle free processing
•One can borrow upto 3-6 times of the annual Income
•Repayment period ranges from 12 to 60 months
•Maximum loan amount offered is Rs. 50 lakhs
Eligibility Criteria for HDFC used Car loans
For a salaried individual, age at the time of availing loan should not be less than 21 years or exceed 60 years at the end of loan tenure. Person should be in employment for at least 2 years of which at least one year should be with the present employer. Minimum annual salary should be Rs. 100,000.
In case of self employed individuals, minimum age is 25 years or more but shall not exceed 65 years at the end of loan tenure. The business should be in existence for at least 3 years and income there from should not be less than 60,000 in a year.
For a partnership firm, the income criteria is same as self employed individuals but there is an additional requirement in terms of a turnover of 450,000 per annum.
Existence of a telephone connection is a must for both salaried, self employed individuals and partnership firm.
Documentation for Used Car loans
•Age proof: Passport Copy or PAN Card, Voter’s Id or driving license with photograph or photo ration card, school leaving certificate.
•Identity proof: Passport Copy or PAN Card, Voter’s Id or driving license with photograph or photo ration card.
•Income Proof: Latest Income Tax Return and previous Returns with advance tax paid challan or latest IT assessment order
•Address proof: Telephone bill, electricity bill, Credit card statement, employer certificate, Photo ration card, Photo driving license.
•Sign verification proof: Passport copy or driving license or credit card statement, banker’s verification or copy of margin money paid to the bank
In case of business, one has to submit audited balance sheet in case turnover exceeds 40 lakhs, partnership deed, memorandum and articles of association or certificate of Incorporation, as applicable from case to case.
Summary of Charges
•Every used car is valued by a certified valuer of the lending agency. It is based on this value that loan is extended. HDFC charges Rs. 500 as valuation fee.
•Foreclosure is not allowed in the first six months and thereafter the charges range from 3% to 6% of the principal outstanding
•Part payment is not allowed in the first 12 months and thereafter can be done only twice within the loan tenure.
•Late payment penalty is 2% per month
•Processing fee is 2% of loan amount subject to a maximum ceiling of Rs. 5000
•NOC and swapping charges are Rs. 500 per instance
•CIBIL charges are Rs. 50
•Payment failure like cheque return are charged at Rs. 550 per instance
•Present interest rate is 14.5% to 17.5%.
These were the salient features of used car loans from HDFC bank. Letzbank has collaborated with HDFC bank in this category of loan. Borrower can visit our eligibility calculator to assess the amount of loan he or she is eligible for. We also host Experian credit score system on our portal which gives you your credit score absolutely free! So visit letzbank today and compare loans from various reputed lenders!