HSBC Car Loan

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HSBC Car Loan Key Features – Jan 2021

HSBC Car Loan Interest Rate Starts @7.50%
Min Loan Amount ₹ 75,000
Max Loan Amount
(Loan to Value)
Loan up to 70% of the sale price
Loan Tenure 1 year to 7 years
Lowest EMI / Lac ₹ 1,526
Minimum Net Monthly Income ₹ 20,000
Minimum ITR for Self Employed ₹ 300,000
Age Criteria Salaried: 21 years to 70 years
Self Employed: 21 years to 75 years
Types of Cars For All New Passenger Cars, Multi Utility Vehicles (MUVs) and Sport Utility Vehicle (SUVs).
Processing Fee Up to 0.40% of the loan amount
Foreclosure Charges 2% of the principal outstanding
Basic Documentation ID Proof, Address Proof, Salary Slip, Bank Statement and Car Quotation

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..

HSBC Car Loan Eligibility

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

Salaried Individual
  • Age – 21-70 years of age
  • Net Monthly Income – should be a minimum ₹ 20,000
  • Employment Duration – Minimum 1 year
  • Income Eligibility – Depends on Form 16 and Salary Slip
Self-Employed Individuals
  • Age – 21-75 years of age
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • Income Eligibility – Depends on the latest Income Tax Returns
Self-Employed Non-Individuals (Company/Partnership)
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • The applicant has to present IT returns and audited financials of 2 years with Calculated Income.
Priority Customers
  • Applicant should have a vintage of at least 6 months
  • Average Quarterly Balance – Minimum Rs.1 lakh for last 2 quarters
  • Maximum Loan Amount – 3 X Average Quarterly Balance of Last 2 quarters

HSBC Car Loan Interest Rate, Fees and Charges

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

Charges New Car Loan Used Car Loan
Interest Rate Starts@7.50% Starts@11.20%
Processing fee 0.40% of the loan amount 0.40% of the loan amount
Issuance of Duplicate Repayment Schedule Charges Rs.500 per instance Rs.500 per instance
Foreclosure Charges 2% of the principal outstanding 2% of the principal outstanding
Penal Interest 2% per month 2% per month
Part Payment charges Rs. 250 – Rs. 950 per month Rs. 250 – Rs. 950 per month
Cheque/Instrument Swap Charge NIL NIL
Documentation Charge Rs.500 per instance Rs.500 per instance
Issuance of Duplicate No Dues Certificate Charges NIL NIL
Registration Certification Collection Charge NIL NIL
Cheque Bounce/Instrument Return Charges Rs. 350 Rs. 350
Issuance of Duplicate Statement Charges Rs.100 per statement Rs.100 per statement
Loan Cancellation/Re-booking Charges NIL NIL
Issuance of Credit Report Rs.50 per instance Rs.50 per instance

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 spends. 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 a 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 – As stated earlier, HSBC Bank offers instant car loans to their existing customers through the ZipDrive feature. This feature allows HSBC  Bank customers to can avail of loans instantly, at their convenience, with negligible documentation. This indicates that your relationship with the bank is an important factor while determining your eligibility.

HSBC Car Loan Documents Required

Check the list of documents required for a car loan:

Salaried Individual

Category Documents Required
Identity Proof

 

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof

 

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof

 

(Any 1)

Birth Certificate
Passport
Driving Licence
PAN
Signature Proof

 

(Any 1)

Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Work Experience Certificate
ITR of Form 16
Salary Slip with Joining Date
Appointment Letter
Letter of Relieving

Self-Employed Individuals

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof (Any 1) Birth Certificate
Passport
Driving Licence
PAN
Signature Proof (Any 1) Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Business Proof Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills

Self-Employed Non-Individuals:

1. Partnership Firms/Societies

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents Authority Letter/PAN cards

2. Private Limited/Limited Companies

Category Documents Required
Identity Proof Copy of Latest MOA
Copy of Incorporation
Copy of Latest AOA
Address Proof (Any 1)
Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents
List of Directors and Shareholding Partners
PAN Card
Board Resolution
Certificate of Commencement of Business for Ltd. Co.

Advantages of HSBC Car Loan

HSBC Car Loan

 

 

  • Higher Loan Amount: Banks offer you a car loan of up to 80-100% of the on-road price of the car in case of new cars. The on-road price of a car includes the ex-showroom price, state government tax, and insurance cost of the car.
  • No Need to Liquidate your Investments: If you avail car loan then there is no need to liquidate your investments which you have made for some other purposes.
  • Flexible Tenure: You can go for any loan repayment tenure ranging from 1 year to 7 years according to your choice.
  • Tax Benefits: A car Loan can help you save on tax if you are a self-employed person/ businessman and use the car for legitimate business purposes. If you are a self-employed person/ businessman, you can claim the interest paid on a car loan as a business expense. In this way, your taxable income will get reduced by the amount of interest you have paid in a financial year on a car loan.

HSBC Car Loan Pre Calculated EMI

How to Apply for HSBC Car Loan?        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 car loan is dicussed 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 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 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 instalments 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.

HSBC Car Loan EMI Calculator

An applier has the choice to check the EMI’s before availing of a Car Loan. So, you can easily check through the link below:

Car Loan EMI Calculator

HSBC Car Loan Types

HSBC offers 3 types of car loans to its customers. You have the option of selecting the offer which suits your need the best. It offers the following types of Car Loans from HSBC:

  1. New Car Loan –  If you want to purchase a new car, this is the scheme for you. You can avail of a Car Loan from HSBC for a minimum of Rs. 75,000 and a minimum tenure of 7 years.
  2. Used Car Loan – If you wish to buy a used car then you can select offers a minimum loan of Rs. 75,000 and a minimum tenure of 5 years.
  3. Loan Against Car – You can opt this scheme if you need urgent funds where you can keep your cars as security with the bank.

Compare Yes Bank Car Loan with other Banks in India

Car loan Banks Interest Rates EMI per Rs 1 lakh for 7 Years
Bank Of Baroda Car Loan 8.80% – 10.55% Rs. 1,599 – Rs. 1,689
Canara Bank Car Loan 8.70% – 9.35% Rs. 1,594 – Rs. 1,627
Corporation Bank Car Loan 8.75% – 9.50% Rs. 1,596 – Rs. 1,634
HDFC Bank Car Loan 8.50% – 11.25% Rs. 1,584 – Rs. 1,725
ICICI Bank Car Loan 8.82% – 12.75% Rs. 1,600 – Rs. 1,806
Union Bank Car Loan 8.85% – 11.85% Rs. 1,601 – Rs. 1,757
SBI Car Loan 8.65% – 9.70% Rs. 1,609 – Rs. 1,645

HSBC Car Loan for Top Selling Cars

Other Available Products from HSBC

HSBC Personal Loan HSBC Gold Loan HSBC Home Loan
HSBC Credit Card HSBC Two Wheeler Loan HSBC Education Loan

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 a new or used.

✅ How can I get 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 7.50%.

✅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 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 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 100% Car Loan from HSBC?

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

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

✅How to get a HSBC Car Loan Statement?

To get a car loan statement of 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 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 through 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 HSBC Car Loan agent is 9878981166.

✅Can I close 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 is 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.

 

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