Cibil Score For HDFC Car Loan India 2018


Cibil Score for HDFC Car Loan

 

CIBIL Score– Your credit card history is taken by the bank before approving the home loan. The Credit Information Bureau India Limited (CIBIL) scores every individual on a scale of 300 to 900 depending on the credit card usage. CIBIL Score of more than 700 is considered to be good and increases the chances of loan approval.

Although there are many banks offering car loan, HDFC bank has its own advantages. Some of the features that HDFC Car Loan offers are at an edge over the others. There are certain things to keep in mind such as buying a brand new car or a used one as the rate of interest varies between the two.

Features of HDFC Bank Car Loan

  • HDFC Bank car Loans are available for both salaried and self employed.
  • Special rates for HDFC Bank customers.
  • Car Loans granted to age group between 21 to 60 years.
  • Loan to Value Ratio is uoto 100% of ex-shoroom price
  • Maximum Tenure of loan is 7 years.
  • Interest rates range from 9.25%
  • EMI of Rs. 1,622 per lakh

HDFC Bank Parameters to decide Car Loan Interest Rates:

3 basic criteria on which the loan interest rate would largely depend are:

Loan amount: Car Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate will be

Your Salary: higher the salary amount, lower would be the interest rate

Type of loan opted for: Account holders have a fair deal now! They can enjoy a lower rate of interest on car loans.

It is generally advantageous to take a car loan as it will allow you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.

Eligibility Criteria For HDFC Car Loan

To become eligible for HDFC Bank car loan the eligibility standard must be matched. That becomes an important deciding factor for your loan amount. Instances like:
 
  1. Salaried, Self- Employed Professional or a Businessman
  2. Income
  3. Age
  4. Qualifications
  5. Number of dependents
  6. Co-Applicants Income
  7. Assets, Liabilities, Stability, and Continuity of Occupation of the borrower
  8. Savings History

Process of Applying for HDFC Car Loan

You can apply for HDFC Bank car loan by contacting the bank directly or by applying online. Availing a loan through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, the value of the property, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

Best Ways To Get Best Car Loan Deal

Buying a new car is something most people look forward to. There are a number of things that you have to do in order to make the car buying process easier and more successful. The main thing you have to figure out before buying a vehicle is what type of auto loan you need. Choosing the right auto loans will require you to do your homework and avoid rushing through this process. By failing to research the various lenders in your area, you will be putting yourself at risk for signing off on a less than stellar loan. While this research may be a bit time-consuming, it is more than worth the effort that you have to invest. Here are some of the things you need to consider when trying to get a great deal on a new car loan.

Do Not Dwell Only On The Car Payment

It might seem responsible to begin shopping by thinking you can afford Rs.3000 a month for a car. After all, looking at the monthly payment is how you decide to buy a cell phone.

"People start with the best intentions for setting up a budget," . 

But car deals can trick you with hidden costs tucked into a monthly payment that ultimately will boost what you're paying in the long run for the car. 

A car dealer might help you get a lower monthly payment by extending the term of that car loan, for example. Yet if you're taking out a six-year or a seven-year car loan, you're spending more money overall and taking on the risk that you'd still owe money on the car if you need a new one in three years. 

The average new car loan was for five years and nine months for new cars financed at dealerships in February, roughly about three months longer than the average new car loan was five years ago.

Dragging out a car loan — and taking on more debt — may be the only way that some consumers can get into a popular, well-equipped truck or SUV. One less-popular option to control costs: Opt for another lower-priced vehicle.

Know Your Credit Score Before You Car Shop

A higher credit score means a lower interest rate. Make sure to get a copy of your credit report long before you apply for a car loan to have enough time to fix any errors or incorrect information that may be dragging down your credit score.

To boost that score, you'd also want to pay down credit card balances, particularly if you can get the balance below 10% of the credit line. Obviously, you don't want to take out new loans right before you're shopping for a car. 

Take Time To Shop For A Car Loan 

Many consumers do not go online to even review going rates for car loans  before they talk to a dealer about financing. 

"Most car buyers just take whatever rate they're given to compare with other  online platform to compare auto loan rates. 

But he said car shoppers should ask for a better rate. A 8,00,000 five-year car loan with a 8.3% annual percentage rate.

Consider The Whole Loan Amount Not Just The Monthly Payment

Among the biggest mistakes you can make when shopping for a car loan is only thinking about the monthly payment. While you want a lower monthly payment, you don’t want a loan that is going to drag out for years. Getting a car paid off in a faster amount of time can save you a lot of money over the years. While getting a shorter loan term may cost a bit more on a monthly basis, you will benefit from it in the long run.

Finding out as much as you can about the lenders in your area is the only way to figure out which one is the right fit for your auto loan needs.

Other Loan-Related Tips

Generally always prefer a floating rate of interest as compared to a fixed rate, which some banks want to offer. A floating rate would come down by a few notches if the economy performs well and you could be one of the beneficiaries of a robust growth.

Be on the lookout for a ‘loan mela’ or a ‘loan campaign’ in your residential/commercial area. During this period, bankers tend to be ‘aggressive’ in sanctioning the loan with least delay (as it suits their targets). Further, during this canvassing, processing charges are either minimal or could be totally waived. You could be in for another surprise: a small discount in rate of interest.

Banks tend to ‘push’ their third-party products along with the car loan. Resist all pressure, saying that such products need not necessarily perform well.

While completing documentation, insist on your copy of the main ‘agreement’ along with a copy of the bank’s sanction. While submitting a loan application to the bank, super scribe on the form the purpose of the loan, to thwart any later attempts by some shrewd bank employee to misuse your application for other purposes (issue of credit card, mutual funds, insurance, etc.). Never put your signature on blank documents. Read the documents well before affixing your signature.

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