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CIBIL Score for HDFC Bank Car Loan

Taking a car loan to finance your dream car is a good option if you do not have adequate fund in hand. HDFC bank is a pioneer in providing car loan services. With HDFC car loans, not only can you take a loan for a new or pre-owned car, but you have the facility to take loan against your existing car via instant cash disbursal. Additionally, you can apply online which saves you a lot of time and effort. Buying a car has multiple benefits, you as well as your family can use it for travelling to work or road trips! If you want to take a car loan from HDFC Bank, there are certain eligibility conditions which have to be met. To begin with, you should check on your CIBIL score. Read more to find out.

Importance of CIBIL Score for getting HDFC Bank Car Loan

Generally HDFC Bank requires a minimum CIBIL score of 700. If your CIBIL score is less than 700, your loan application will most likely get rejected. Here’s why. A CIBIL score is a clear indicator of your financial health, it is derived out of multiple factors, the most important being your recent credit and payment history. Your past payment history is clearly reflected on your CIBIL score, this has a direct impact on your HDFC Bank car loan eligibility. If you have a poor CIBIL history or score, there is a chance that you might not get a car loan at all. Therefore, it is important that you maintain a good CIBIL score and if not, you should start rebuilding it as soon as possible.

HDFC Bank Car Loan Information

An HDFC car loan is available to both salaried as well as non-salaried and self-employed individuals. Mentioned below is a list of eligibility criteria for the three types of HDFC car loans.

New Cars

CriteriaDescription
Age21 to 60 years for Salaried
21 to 65 years for Sole Proprietorship
Employment2 years for Salaried
2 years in business for Sole Proprietorship
Minimum Annual Income- Salaried: Rs. 3,00,000
- Sole Proprietorship: Rs. 3,00,000
- Partnership Firms: Rs. 3,00,000
- Private Limited Companies: Rs. 3,00,000 Public Limited Companies: Rs. 3,00,000
Minimum Turnover- Partnership Firms: Rs. 3,00,000

Pre-owned Cars

CriteriaDescription
Age- 21 to 60 years for Salaried
- 21 to 65 years for Sole Proprietorship
Employment2 years for Salaried
3 years in business for Sole Proprietorship
Minimum Annual Income- Salaried: Rs. 2,50,000
- Sole Proprietorship: Rs. 2,50,000
- Partnership Firms: Rs. 2,50,000
- Private Limited Companies: Rs. 2,50,000
- Public Limited Companies: Rs. 2,50,000
Minimum Turnover Partnership Firms: Rs. 4,50,000

Loan Against Car

CriteriaDescription
Age21 to 60 years for Salaried
21 to 65 years for Sole Proprietorship
Employment2 years for Salaried
3 years in business for Sole Proprietorship
Minimum Annual Income- Salaried: Rs. 2,50,000
- Sole Proprietorship: Rs. 2,50,000
- Partnership Firms: Rs. 2,50,000
- Private Limited Companies: Rs. 2,50,000
- Public Limited Companies: Rs. 2,50,000
Minimum TurnoverPartnership Firms: Rs. 4,50,000

KYC and Documentation

ID Proof- Salaried Individuals and Businessmen: PAN, Passport, Aadhaar, Voter Id, Driving License.
- Partnership Firms: Partnership Deed.
- Private Limited Companies: Memorandum and Articles of Association / Certificate of incorporation.
Age ProofPAN, Passport, Aadhaar, Voter Id, Driving License, Birth Certificate.
Address ProofRation card, driver’s license, Aadhaar card, Passport, telephone bill, electricity bill, credit card statement with a copy of your credit card, or an employer’s certificate.
Proof of Income- Salaried: HDFC Salary account statement, Bank Statement, Form 16, Latest ITR.
- Businessmen: Latest/previous year’s Income Tax Returns, Latest IT Assessment Order, Advance Tax Paid Challan.
- Private/Public/Partnerships: Latest ITR, Balance Sheet, Profit and Loss Statement.
Repayment Schedule9 months for personal vehicle and for 12 months for commercial vehicles.
Prepayment ChargesNot allowed for 6 months; 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months.
Loan Amount- Up to 100% of ex-showroom price for new cars. - Up to 80% of market value for used cars.
Interest Rate8.70% onwards.

The Lowest EMI offered by HDFC Bank is Rs. 1,594 per lakh loan amount at lowest car loan interest rate of 8.70%, over a maximum tenure of 7 years. Additionally, you can also calculate your EMI and rate of interest with a free HDFC Bank Car Loan Eligibility Calculator. It can be availed online from the official website of HDFC Bank. Simply enter the requested details to find out if you are eligible for the loan. You also have the option to check your exact total cost along with EMI car loan. HDFC also offers special discounts and low vehicle interest rates to customers who have maintained a good relationship with the bank for a long time.

Probable Reasons for HDFC Bank Car Loan Rejection

  • Low CIBIL Rating - As mentioned in the introduction, a low CIBIL score and a poor CIBIL history will most likely make it difficult for you to get a HDFC Bank Car Loan.
  • Age - You must have a minimum age of 21 years to be eligible for a HDFC Bank Car Loan. The reason why age is important is because it determines your tenure for repayment. You need to clear the loan by the age of 65 years.
  • Income - Many times, the car loan amount will not necessarily coincide with your income bracket. In such a case, you do not meet the minimum annual income requirement. Thus, your car loan application will be rejected.
  • Employer’s Credentials - HDFC Bank has a specified list of companies to whom they do not entertain car loan services. If you are employed in any of these companies, you will most likely not receive a car loan.

Tips for Improving CIBIL Score to get HDFC Bank Car Loan

  • Credit Repair - This should be your first step if you want to improve your CIBIL score in order to avail HDFC Bank’s Car Loan. You can start by prepaying all your existing or remaining EMIs at a single go or clear all of your existing debts on time.
  • Missing credit card payments: If you cannot make complete payments at a single go or are unable to clear your existing EMIs at once, then, do not miss out on any of the upcoming EMIs or credit card bill payments. This is a time consuming process, but it will slowly recover your credit score over a few months’ time period.
  • Co-applicants - A co-applicant is a person who can apply the loan along with you. This is advantageous as if you do not have a good CIBIL score, you can select a co-applicant whose income and CIBIL score is higher than yours. This will definitely increase your eligibility for availing an HDFC Bank Car Loan.

FAQs On HDFC Bank Car Loan

What are the Car loan interest rates offered by HDFC Bank?

HDFC Bank offers car loans at the rate of 8.70 % to 10.25%. However, there are multiple factors such as age, income, relationship with the bank which can affect the rate of interest.

What if I have a low CIBIL score, will HDFC Bank give me a car loan?

If you have a low CIBIL score, you most likely, will not get a car loan as the minimum CIBIL score required for HDFC Bank Loan is 700 and above.

Does skipping HDFC Bank car loan payment affect my CIBIL score?

Yes, if you miss out even a single EMI of your HDFC Bank car loan payment, it will have a negative impact on your CIBIL credit score.

Can I share my wife’s income while applying for a car loan from HDFC Bank?

Yes, you can share your wife’s income and age while applying for a car loan from HDFC Bank.

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