MSME Car Loan

We have lots for you in store 

MSME Car Loan
MSME Car Loan

At HDFC Bank, we are dedicated to fulfilling the mobility needs of Small and Medium enterprises (SMEs) and individuals. We offer tailored vehicle financing solutions with flexible terms and quick processing, empowering businesses to expand their operations efficiently.

Features Tailored For You

100% Digital Loan

  • Fully digital process with HDFC Bank Xpress Car Loan, allowing you to apply anytime, anywhere. Instant application and approval within 30 minutes; no physical verification or document submission required.
100% Digital Loan

Quick Disbursal

  • Regardless of your location in India, HDFC Bank Xpress Car Loan ensures swift disbursal directly to your car dealer via NetBanking.
Quick Disbursal

High Loan Amount

  • HDFC Bank Car Loans offer up to ₹25 lakh for a wide range of vehicles, with up to 100% on-road finance available. Existing customers can also apply for Top-Up Loans without additional documentation.
High Loan Amount

Flexible Repayments

  • Enjoy flexible repayment options tailored to your needs, ranging from 12 to 84 months, at competitive Car Loan interest rates.
Flexible Repayments

Extensive Dealer Network

  • Benefit from a vast network of 3,000 plus car dealers and apply at any of  HDFC Bank’s branches across India, for a seamless and quick loan processing experience.
Extensive Dealer Network

Preferred Pricing

  • Existing HDFC Bank customers can take advantage of our exclusive pricing schemes, simplifying loan approval without the need for additional documentation.
Preferred Pricing

Insurance

  • HDFC Bank provides comprehensive insurance covering accidental death, permanent disability, and hospitalisation, ensuring peace of mind while driving.
Insurance

Frequently Asked Questions

HDFC Bank MSME Business Car Loan amount is disbursed directly to the car dealers via HDFC Bank NetBanking platform. For pre-approved HDFC Bank customers, the loan can be disbursed in their account within 10 seconds. For non-HDFC Bank customers, it can take up to 4 hours.

Yes, HDFC Bank allows you to preclose your loan before the stipulated repayment tenure ends. However, you may be required to bear a small loan preclosure charge, based on when during the loan tenure, you choose to exercise this option. 

If you default on a MSME Two Wheeler Loan repayment, it can lead to consequences such as late fees and penalties. This apart, it can also negatively impact your credit score, while the lender may initiate legal action and/or repossess the vehicle.

HDFC Bank provides MSME Car Loans covering up to 100% of on-road costs for specific car models.

HDFC Bank offers adaptable SME Car loan durations for Car Loans. The minimum tenure is 12 months, with the option to extend it up to 84 months, specifically for fuel-based vehicles and 96 months (up to 8 years) for electric vehicles (EVs). 

More about SME Car and Two-Wheeler Loan

Benefits

  • Flexible Financing: Enjoy competitive interest rates and flexible repayment terms tailored to SME needs.
  • On-Road Funding: Get Coverage of up to 100% of on-road costs, easing financial burden and ensuring comprehensive coverage.
  • Quick Processing: Expedited loan approval and disbursal processes facilitate the timely acquisition of vehicles, enhancing operational efficiency.
  • Customised Solutions: Tailored loan products along with Custom-Fit, Step-Up and Balloon EMI repayment options cater to varying financial capabilities and preferences.
  • Enhanced Business Operations: Facilitates mobility, enabling SMEs to reach clients and markets efficiently, thereby boosting productivity.
  • Additional Benefits: May include insurance coverage options, preferred pricing for existing bank customers, and potential tax benefits.
  • Support for EVs: Offers extended loan tenures of up to 8 years specifically for electric vehicles, promoting sustainable business practices.
Description of charges New Car Loans
Documentation charges* ₹650 per case (charges NOT to be refunded in case of case cancellation.)
Premature closure charges (for full payment)* For pre-closures within one year, the charges will be 6% of the outstanding principal.
For pre-closures within 13-24 months from the first EMI, the charges will be 5% of the outstanding principal.
For pre-closures post 24 months from the first EMI, the charges will be 3% of the outstanding principal.
If you own a micro or small enterprise and have availed a fixed rate loan facility up to ₹50 lakh, you will not be charged any premature closure fees if you make a full payment from your own source.
Premature closure charges (for part payment)* During the loan tenure, part payment will be allowed twice only.
In a year, only one part payment is allowed.
You can make a part payment at any time, but it cannot exceed 25% of the outstanding principal amount.

If the part prepayment is within 24 months from the first EMI, a charge of 5% will be levied on the part payment amount. If the part prepayment is post 24 months from the first EMI, a charge of 3% will be levied on the part payment amount.

If you own a micro or small enterprise and have availed a fixed rate loan facility up to ₹50 lakh, you will not be charged any premature closure charges if you make a part payment from your own source.
Stamp duty & Other Statutory Charges(non-refundable) As per actuals which are applicable in laws of the state (including RTO charges).
Delayed installment payment charge 18% p.a. (1.5% per month), plus applicable government taxes on overdue installment amounts.
Processing fees* (non-refundable) Up to 0.5% of the loan amount is subject to a minimum of ₹3,500 and a maximum of ₹8,000.
For loan facilities up to ₹5 lakh availed by micro and small enterprises subject to URC submission before disbursal, no processing fees will be charged.
Repayment Mode changes charges ₹500 per instance.
Loan cancellation Charges NIL cancellation charges (however, interest charges from the date of disbursement till the date of cancellation of the loan will be borne by the customer. Processing fee Stamp duty and documentation Charges are non-refundable and would not be waived/refunded in case of loan cancellation).
Legal, repossession and incidental charges At actuals
Duplicate no due certificate / NOC ₹250 per instance
Loan re-schedulement charges / rebooking charges ₹400 (to make changes on RC, you must pay a refundable security deposit of ₹5,000. This deposit is non-interest bearing and will be repaid once you provide the transferred Registration Certificate to the bank.)
LPG / CNG NOC / other special NOC ₹200 per NOC
CIBIL charges (only on request) ₹50
Payment return charges* ₹450 per instance
Amortisation schedule charge/ Repayment schedule charges ₹50 per schedule for physical copy.
Customer can also download the schedule from the link free of cost
Commercial/personal use NOC (conversion subject to credit approval) ₹200 per NOC
Registration Certificate (RC) Collection Fees ₹500 per case (to be refunded in case of case cancellation).
Rack interest rate 9.40% onwards, depending on the loan amount, tenure & CIBIL score.
RTO transfer charges At actuals

 

  • The bank will charge a Refundable Security Deposit (non-interest bearing) of ₹5,000 from you. You must provide the transferred Registration Certificate to the bank and an NOC charge of ₹500. 
  • You are advised not to engage in any cash transactions with the bank's direct sales associates. You should also avoid making any payments in cash, bearer cheques, or any kind in connection with your loan to the executive handling the loan application.

Apply for an HDFC Bank Car Loan today!
Note: *Premature closure charges (full/partial payment), processing fees, documentation charges, payment return charges, and registration certificate collection fees are exclusive of government taxes. Government taxes and other levies (as applicable) would be charged additionally. All promotional offers will be null and void in case of third-party payments towards foreclosure and shall attract charges as per the standard grid.
**Registration Certificate Collection fees are refundable in case of loan cancellation


Rates offered to customers during the period of January '24 to March '24

Bank IRR      
Product Min IRR Max IRR Avg IRR
AUTO LOAN 8.30% 11.70% 9.21%


Annual Percentage Rate offered to customer during the period of January'24 to March'24

APR      
Product Min APR Max APR Avg APR
AUTO LOAN 8.30% 11.70% 9.21%

Note: *Foreclosure, part-payment, processing fees, documentation charges, cheque / SI / ECS return and collateral charges are exclusive of government taxes. Government taxes and other levies (as applicable) would be charged additionally. All promotional offers will be null and void in case of third-party payments towards foreclosure and shall attract charges as per the standard grid.

**Collateral charges / PDD collection charges are refundable in case of loan cancellation

Eligibility

  • Salaried Individuals:
    • Employees of private limited companies, public sector undertakings (central, state, local bodies).
    • Age requirement: Minimum 21 years at loan application, not exceeding 60 at loan tenure end.
    • Employment tenure: Minimum 2 years of total job experience, with at least 1 year at current employer.
    • Minimum annual income: ₹3,00,000., including spouse/co-applicant income.
    • Requirement: Telephone/post-paid mobile.
  • Self-Employed Individuals and Professionals (Sole Proprietorship):
    • Self-employed sole proprietors in manufacturing, trading, or services.
    • Age requirement: Minimum 21 years at loan application, not exceeding 65 at loan tenure end.
    • Business tenure: Minimum 2 years in business.
    • Minimum annual income: ₹3,00,000.
  • Self-Employed Individuals and Professionals (Partnership Firms):
    • Self-employed partners in the business of manufacturing, trading, or services.
    • Minimum turnover requirement: ₹3,00,000 per annum.
  • Self-Employed Individuals and Professionals (Private Limited Companies):
    • Owners of private companies in businesses like manufacturing, trading, or services.
    • Minimum annual income: ₹3,00,000.
  • Self-Employed Individuals (Public Limited Companies):
    • Directors in public limited companies involved in manufacturing, trading, or services.
    • Minimum annual income: ₹3,00,000.

Documents

For Salaried Individuals:

Identity & Address Proof Options:

  • Valid Passport
  • Recent, legible, laminated Permanent Driving License.
  • Voters ID Card
  • Job card issued by NREGA.
  • Letter issued by the National Population Register containing name & address details.
  • Aadhaar Card(only if Submitted voluntarily & backed by Aadhaar consent letter.1st 8 digits of Aadhaar Number on physical copy to be redacted) Aadhaar Card can be Physical Aadhaar or Print out of e- Aadhaar (not older than 30 days from the date of application).

Income Proof:

  • Latest Salary Slip and Form 16
  • Financial Statements:
  • Bank statements from the previous 6 months.

Self Employed Individuals

(Partnership Firms)

1. All Income Proof Documents as listed below:

  • Audited Balance Sheet
  • Profit & Loss Account for the previous 2 years.
  • Company Income Tax Returns (ITR) for the previous 2 years.

2. Address Proof Options:

  • Telephone Bill
  • Electricity Bill
  • Shop & Establishment Act Certificate
  • SSI Registered Certificate
  • Sales Tax Certificate

3. Financial Statements:

  • Bank statements from the previous 6 months.

Self-employed individuals (Sole Proprietorship):

1. Any of the below Identity & Address proof documents:

  • Valid Passport
  • Recent, legible, laminated Permanent Driving License.
  • Voters ID Card
  • Job card issued by NREGA
  • Letter issued by the National Population Register containing name & address details.

2. Income Proof:

  • Latest Income Tax Returns (ITR).

3. Financial Statements:

  • Bank statements of the previous 6 months.

Self Employed Individuals

(Public Limited Companies)

1. Mandatory Income Proof Documents:

  • Audited Balance Sheet
  • Profit & Loss Account for the previous 2 years.

2. Address Proof Options:

  • Telephone Bill
  • Electricity Bill
  • Shop & Establishment Act Certificate
  • SSI Registered Certificate
  • Sales Tax Certificate

3. Financial Statements:

  • Bank statements from the previous 6 months.

 

How to apply?

To apply for HDFC Bank SME Car and Two-Wheeler loans, visit the HDFC Bank website or head to your nearest HDFC Bank branch office and contact one of our representatives.