What are the requirements for Car Loan?

Buying a car is akin to an investment. You typically use the car for a few years, which is why you must do all the due diligence to ensure you choose the right vehicle. But your research should not end with selecting the car, especially if you intend to apply for a Car Loan. You must ensure you meet the various requirements for a Car Loan. The Xpress Car Loan application process takes you a step closer to bringing your dream car home at record speed.

1. Car Loan Eligibility Requirements

Applying for Car Loans online now offers faster processing than ever. Before you submit your application, ensure you meet the eligibility criteria for the Xpress Car Loan. Typically, lenders require the following:

• Resident Status: Must be a citizen of India.
• Age Requirement: You need to be at least 18 years old.
• Income Criteria: You should be a salaried professional, self-employed, or a business owner with a minimum monthly income of ₹25,000.
• eKYC/Video KYC: Available for Aadhaar OTP-based eKYC and video KYC in India during application.
• Credit Score: Maintain a good credit score to demonstrate creditworthiness.

2. Car Loan Documentation Requirements

Lenders typically provide a detailed list of required documents when applying for a Car Loan. During the eKYC and Video KYC stages, you'll need to submit the following along with your completed loan application form:

• A clear copy of your PAN Card
• ID Proof: A valid document showing your name and date of birth. Acceptable options include PAN, Aadhaar, Passport, Driver's License, or Employee ID.
• Address Proof: A document verifying your name and current or permanent address. Acceptable options include Aadhaar, Passport, Driver's License, utility bills, or bank passbook.
• Income Proof: Recent salary slips and Form 16

For online Xpress Car Loan applications, physical documents are not required. Instead, provide scanned copies. If your loan amount exceeds the initial approval limit, you'll need to submit additional documents, including:

• Bank Statements: Internet banking credentials or bank account statements from the last six months in PDF format for income verification.
• Post-Disbursal Documents: Submit the car purchase invoice, margin money receipt from the dealer, and a signed key fact sheet within ten days of loan disbursal.

3. Other Requirements for a Car Loan 

In addition to the above Car Loan requirements, you must make a down payment on the car. This down payment typically covers a percentage of the car's price and varies based on your loan amount and eligibility. If you fall short of the bank's criteria, such as income or credit score, you might be required to provide details of a guarantor. A guarantor is someone who agrees to repay the loan if you default, adding an extra layer of security for the bank and potentially improving your chances of loan approval.

HDFC Bank offers Xpress Car Loans that come with a host of benefits. You can apply for the loan in three simple steps and get approved within 30 minutes. Enjoy 90% on-road funding on select cars, along with loans worth ₹20 lakhs and 7-year repayment terms. Click here to start the process of bringing your dream car home.

By clicking here, read more on how to improve your chances of getting a Personal Loan.

​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Xpress Car Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.