HDFC Bank has launched a ‘Car Loan Mela’ in select locales of India. The bank is facilitating the occasion on June 2 and 3, at around 650 branches across Rajasthan, Madhya Pradesh, Chhattisgarh, Northern Maharashtra, and Vidarbha.
Customers will be able to test drive the vehicles during the two-day event, which is being held in collaboration with leading automakers and dealers. The bank will propose on-the-spot credit endorsements to qualified clients for all vehicle classes, going from standard to premium models.
By providing a wide range of loans at reasonable interest rates, the HDFC Bank hopes to make automobile financing more accessible, particularly in semi-urban and rural areas.
The bank says that the “Car Loan Mela” event is meant to make it easy for customers to get financing by making the process simple. For processing loan requests, the bank will provide a complete end-to-end solution with a variety of repayment options and minimal paperwork.
HDFC Bank is offering three different ways to pay back the loan as part of its financing plans: regular, incremental, and one-time payments The borrower’s current income is used to determine eligibility for the regular repayment option, while the step-up and balloon repayment options take into account both the borrower’s current income and anticipated income growth.
Customers can take advantage of the “Car Loan Mela” to receive up to 100% on-road financing for specific automobile models. The bank is providing loans of up to 10 crore rupees with flexible repayment terms of 12 to 84 months (7 years). Starting at 8.85 percent and going up, interest rates will vary based on the borrower’s credit history and repayment history.
Notwithstanding serious financing costs, HDFC Bank gives a few extra elements to improve the vehicle credit insight. These include no fees for foreclosure, eligibility for a top-up loan after nine months, and insurance benefits for accidental death, hospitalization, and permanent total disability.
In contrast to the standard EMI scheme, where the EMI remains constant throughout the loan term, the step-up EMI scheme offers a distinct repayment structure in which the equated monthly installment (EMI) increases over time. For instance, borrowers have the choice to steadily raise their EMI by 11% every year all through the advance span.
While, in the inflatable reimbursement conspire, borrowers have the adaptability to reimburse a piece of the credit sum as compared regularly scheduled payments (EMIs) all through the credit residency, with the excess equilibrium paid in a single amount toward the finish of the credit time frame.
Not at all like the move forward reimbursement plot, where EMIs bit by bit increment, the inflatable reimbursement choice permits clients to make equivalent EMIs for a foreordained sum and settle the excess equilibrium in a last mass installment.
An impressive auto loan book size of Rs 1,17,429 crore was recorded by HDFC Bank for the fiscal year that ended on March 31, 2023. Last year, the bank presented the creative ‘Xpress Car Loan ‘ facility, a state of the art computerized Programming interface stage that empowers credit advances to be dispensed into sellers’ records inside roughly 30 minutes.
