1. What is Car Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For HDFC Bank car loans, EMIs are calculated using reducing balance method.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly EMI payment
• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan tenure in months

Explanation: The formula accounts for both principal and interest components of the loan, with interest calculated on the reducing balance.

3. HDFC Bank Car Loan Features

Details: HDFC Bank offers car loans with competitive interest rates (typically 8.50% - 14.50% p.a.), flexible tenure (1-7 years), and loan amounts up to 100% of ex-showroom price for certain models.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate (check current HDFC rates), and loan tenure in years. The calculator will show monthly EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC's current car loan interest rate?
A: Rates vary (8.50%-14.50% p.a.) based on credit profile, car model, and tenure. Check HDFC website for latest rates.

Q2: Are there any processing fees?
A: Yes, HDFC charges 0.4%-2.5% of loan amount as processing fee plus applicable taxes.

Q3: What is the maximum loan tenure?
A: Typically 7 years for new cars, though shorter for used cars.

Q4: Can I prepay my HDFC car loan?
A: Yes, but prepayment charges may apply (0-4%) depending on tenure and timing.

Q5: What documents are required?
A: Typically need proof of income, address, identity, car quotation, and bank statements.