HSBC Car Loan

HSBC Car Loan Key Features Apr 24 2024

About HSBC Car Loan

HSBC is a multinational investment bank. In 2018, HSBC was the 7th largest bank in the world. It has 3,900 offices in 65 countries.

HSBC offers Car Loan who wants to purchase a Car. It offers you flexible repayment options. Also, HSBC provides low-interest rates for higher loan amounts for Car Loans.

HSBC offers Car Loans at affordable rates of interest to the customer for purchasing a car either new or second-hand. A car loan is easily available which can be got who have a good credit/CIBIL score.

Advantages of HSBC Car Loan

⍟ Loan Approval in 30 Minutes
⍟ Lowest Rate of Interest
⍟ Up to 100% on Road Loan
⍟ Minimum Documentation
⍟ Paperless Process
⍟ Flexible Repayment
⍟ Zero Foreclosure
⍟ 24 x 7 Online Payment Facility
⍟ No Hidden Charges

HSBC Car Loan Eligibility

Documents required for a car loan and other eligibility are discussed below.

HSBC Car Loan Interest Rate, Fees and Charges

Details on car loan interest rate and other charges are given below:

HSBC Car Loan Documents Required

Check the list of documents required for a car loan:

Salaried Individual

Self-Employed Individuals

Self-Employed Non-Individuals

1. Partnership Firms/Societies

2. Private Limited/Limited Companies

How to Increase Your Eligibility for HSBC Bank Car Loan

• Opt for a shorter tenure – When you choose a shorter repayment tenure, the EMI that you will be paying each month will be higher. This is an indication of your higher repayment capacity which will lead to banks feeling confident to lend to you. So, if you wish to boost your eligibility for a car loan, opt for a shorter repayment tenure.
• Keep your credit score in check – If you wish to increase your eligibility for an HSBC Bank car loan, make sure that you maintain a credit score of over 750. You can use the Free Credit Score tool to check and maintain a healthy credit score. Checking your credit score regularly can let you take corrective measures to improve it if your score is low or give you the confidence to approach the bank if it is high.
• Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and spending. Before banks lend to you, they will check how much percentage of your earnings goes into paying your debts and a low debt-to-income ratio will be an indication of your high repayment capacity. To enhance your eligibility for a car loan, you should ensure that you maintain a low debt-to-income ratio.
• Apply for a loan for a lower amount – By applying for a loan for a lower amount, you can increase your eligibility for an HSBC Bank car loan. A lower loan amount means that the loan will be repaid sooner and hence, the chances of you being eligible for a loan is higher.

Factors Affecting HSBC Bank Car Loan Eligibility

The eligibility for availing of an HSBC Bank car will depend on the below-given factors:

• Income – If your income is on the higher side, there are good chances of your eligibility for an HSBC Bank car loan being higher. This is because a higher income indicates higher repayment capacity. To be eligible for an HSBC car loan, your yearly income should be at least Rs.3 lakh.
• Loan amount – Your eligibility for a car loan from HSBC  will be higher if you apply for a lower loan amount simply because if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to lend to you.
• Repayment tenure – Choosing a longer repayment tenure can lower your eligibility for a car loan as it might give an impression to the bank that your ability to pay the loan is lower. This is because longer repayment tenure results in lower EMIs and the lender may tend to think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
• Credit score – This is an important factor that most banks, including HSBC Bank, consider when determining your eligibility for a car loan. A credit score of 750 and above is considered a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and hence, your eligibility will be higher.
• Relationship with the bank –This indicates that your relationship with the bank is an important factor while determining your eligibility.

HSBC Car Loan Customer Care – Toll-Free Number

HSBC 24*7 customer care toll-free number all your general enquiries is For Ahmedabad / Bangalore / Chennai / Delhi & NCR / Hyderabad / Kolkata / Mumbai / Pune / Chandigarh / Cochin / Indore / Jaipur / Lucknow dial 040 6126 8002

HSBC Car Loan EMI Calculator

HSBC Car Loan Types

There’s a long list of Car Loan Products provided by HSBC. Choose among them according to your desires. Lit of Car Loan provided by HSBC:
HSBC offers different types of car loans to its customers. You have the option of choosing the offer which suits your need the best. It offers the following types of Car Loans:

1. New Car Loan –  Applicants looking to buy a new car can go for this. You can get a car loan for a minimum amount of Rs. 1 lakh and tenure up to 7 years.
2. Used Car Loan – Individuals wanting to buy used cars can avail Used Car loan with a minimum amount of Rs. 1 Lakh and a tenure of 5 years.
3. Loan Against Car – Applicants with the urgency of funds can go for this loan by providing their car as a gage and getting a loan amount against it.

HSBC Car Loan Pre Calculated EMI

How to Apply for HSBC Car Loan?       

1. Visit Dialabank and fill a form online.
2. Our Relationship Manager will contact you and assist you throughout the process.
3. You can compare various offers from banks and opt according to your suitability.
4. So, you can easily apply for a Car Loan with Dialabank and enjoy the best offers.
5. Eligibility criteria for a car loan are discussed in the above contents.

Tips to decide the right amount of EMI

• Ascertain the amount you need to borrow: It is important that before approaching a bank for a loan, you inform them about the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Furthermore, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans can result in huge interest outgo.
• Review your current obligations: Before taking a loan, it is advisable to check your expenses, including any EMI obligations that you have on your current loans. This assessment will help you to estimate the amount of EMI which you will be able to pay comfortably after taking into account other obligations. Once you arrive at the EMI, you can also decide on the right loan tenure.
• Calculate your Axis Bank car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. HSBC Bank provides an LTV up to 100 % of the ex-showroom price and expects the borrower to fund the remaining value of the property by own money
• Multiplier-based loan amount eligibility – HSBC Bank also calculates your eligibility by applying a multiplier to your net take-home salary. This is the simplest method for calculating loan eligibility used by banks. Usually, it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your company that is based on its reputation, stability, size, and growth in turnover.
• FOIR based loan amount eligibility – HSBC Bank will also estimate your Fixed Income to Obligations Ratio (FOIR) to find out the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. HSBC Bank’s assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short-term loans to improve your eligibility.

The car loan EMI – EMI changes in case of prepayment

In case you prepay your loan for the vehicle, a small penalty is charged. Prepayment in HSBC Bank is 5% from 13-24 months, 3% after 24 months. When you prepay, the outstanding balance on your loan for the vehicle reduces. Capital Small Finance Bank provides you with two options:

• Reduce your loan tenure and keep EMI on your car loan unchanged: This alternative allows you to shut your loan prior and save the interest outgo associated with the remaining term. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
• Reduce the amount of EMI and keep your loan tenure the same: This option provides you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would require to reduce their monthly EMI obligations.

How to Calculate EMI on HSBC Bank Car Loan

Before an applicant avail car loan from HSBC Bank, you may require to understand how much amount you will be paying towards the loan each month. This is simply known as EMIs or equated monthly installments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses finely.

One can easily calculate the EMI for your car loan by using the below-given formula:

E = P*r*[(1+r) ^n/((1+r) ^n-1)]

In the above formula, E denotes the EMI, P the principal amount, in the interest rate, and n the number of years or tenure of the loan.

One can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

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FAQs for HSBC Car Loan

✅ What is HSBC Car Loan?

HSBC Car Loan is a car loan offered to you for purchasing a car whether new or used.

✅ How can I get a Car Loan from HSBC?

You can get a car loan from HSBC by visiting the nearest branch of HSBC. You will get satisfaction to apply from anywhere.

✅How does HSBC Car Loan work?

HSBC works on providing the funds at attractive interest rates. You can avail of a car loan easily and quickly. HSBC provides a flexible loan tenure period.

✅What is the Car Loan Interest Rate in HSBC?

The interest rate in HSBC for a car loan starts at

7.35% per annum

✅How to Check Car Loan status in HSBC?

You can visit the HSBC branch to check your car loan status. Also, you can use the net-banking facility of HSBC and get to know your car loan status.

✅How to Calculate Car Loan interest in HSBC?

For the calculation of your car loan interest rate in HSBC, the following information is required:

• Loan tenure
• Loan amount
• Rate of Interest 

To calculate your car loan interest and EMI in HSBC through the EMI calculator.

✅What is the maximum loan amount I can avail on a Car Loan from HSBC?

The maximum loan amount that can be availed by you for a car loan from HSBC is up to 70% of the car Price.

✅What is the loan tenure of HSBC Car Loan?

The loan tenure of HSBC for a car loan is up to 7 years.

✅Can I get a 100% Car Loan from HSBC?

No, you can not get a 100% car loan from HSBC. You can get a 70% car loan from HSBC.

✅How much processing fee is applicable on HSBC Car Loan?

The processing fee applicable on HSBC is up to 0.40% of the loan amount for getting a car loan.

✅What are the EMI options available on HSBC Car Loan?

The EMI options available on HSBC car loans are Step-up and Balloon EMI.

✅What are the charges for Prepayment in HSBC Car Loan?

The prepayment charges in HSBC is 2% of the principal outstanding for availing of a car loan.

✅Can I get a top-up loan on my existing HSBC Car Loan?

Yes, you can get a top-up loan on your existing HSBC car loan. Also, you can get a top-up car loan by visiting the online platform of Dialabank.

✅Do I need to provide a guarantor to avail myself a car loan from HSBC?

No, there is no need to provide a guarantor to avail of a car loan from HSBC. You can avail of a car loan without any guarantor.

✅How to get an HSBC Car Loan Statement?

To get a car loan statement from HSBC, you can use HSBC’s mobile banking app. Also, visit the nearest HSBC branch to know your car loan status.

✅How to pay HSBC Car Loan interest online?

You can pay your car loan interest through the net-banking services of HSBC. If you want a low-interest car loan, you must visit Dialabank online.

✅What if I can’t pay the interest on HSBC Car Loan for 3 months?

If you don’t pay the interest on HSBC Car Loan for 3 months, then it will be put on to the outstanding loan amount and repayment charges will reframe.

✅How can I apply for EMI Moratorium on HSBC Car Loan?

You can apply for EMI Moratorium on HSBC by visiting the nearby branch of HSBC or you can submit a request through an email. Also, if you want relief for the balance duration, you must apply through Dialabank.

✅What is the number for HSBC Car Loan agent?

The number for the HSBC Car Loan agent is 9878981166.

✅Can I close the HSBC car loan online?

You can close your car loan from HSBC by using the net-banking page of HSBC. You have to log in using your details on the net-banking page and pay your car loan.

✅What is HSBC Car Loan Customer Care Number?

The customer care number of HSBC for car loan queries is 9878981166.

✅ How can I get NOC from HSBC for a car loan?

You can get a car loan NOC from HSBC when you pay your loan amount of car loan.

✅ What is the HSBC Car Loan closure procedure?

• Just go to the bank with the documents.
• Write a letter for pre-closure of the HSBC Car Loan account.
• Pay the pre-closure charges as per HSBC Car Loan.

✅ What are the HSBC Car Loan preclosure charges?

HSBC Car Loan preclosure charges are 2% of the principal outstanding.

✅ What is the HSBC Car Loan maximum tenure?

The HSBC Car Loan maximum tenure is 7 years.

✅ What is the HSBC Car Loan minimum tenure?

The HSBC Car Loan minimum tenure is 1 year.