When you take a loan, some banks will expect you to pay a certain portion (usually 5% to 15%) of the car value to the dealer before they release the Car Loan. This is called a down payment.

What then is a zero down payment Car Loan?
A zero-down payment Car Loan is when the bank offers to pay the entire value of the car as part of the loan. For example, HDFC Bank offers up to 100% finance on its Car Loans. That essentially is a zero-down payment Car Loan.

So, I don’t have to pay anything to own a car?
You may have to pay loan processing fees (a small percentage of your loan amount) to the bank. The price will also change in terms of state registration, road tax and insurance. Of course, any accessories you may need are not usually covered by a 100% Car Loan.

Who is eligible for a zero down payment Car Loan in India?
The eligibility criteria will differ from bank to bank, but here are some common factors that banks consider:

• Income: Your annual income should be above the eligible value. In fact, you should ensure that your Car Loan amount should be less than your net annual income.
• Years of employment or business: More than the prescribed years of experience in your job, profession or business
• Track record: A good credit track record (as reflected in your CIBIL score)
• Existing loans: If you are already servicing existing loans that may affect the amount of loan you can get
• Value of the car: The higher the value of the car, the lower the chances of you getting 100% finance
• Relationship with the bank: If you are an existing customer with a good track record, you stand a better chance of getting a zero down payment loan.

You can also read more on how to improve your chances of getting an approval on your Car Loan.

You can always check your Car Loan eligibility here.

What are the documents to submit for such a loan?
You will have to submit income, identity and address proof, besides the car documents. Check out the HDFC Bank website for the documents that you may need to submit: 

If you are an existing HDFC Bank customer, you can get 100% finance instantly with minimal paperwork. Apply for a Car Loan now!

* Terms & conditions apply. Car Loan disbursal at sole discretion of HDFC Bank Ltd. 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.