1. What is the EMI Calculation Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays each month to repay a loan. It's commonly used for car loans, home loans, and other installment loans.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly EMI payment
• \( P \) — Principal loan amount (₹)
• \( r \) — Monthly interest rate (annual rate divided by 12 and converted to decimal)
• \( n \) — Total number of payments (loan term in years multiplied by 12)

Explanation: The formula accounts for both principal repayment and interest payment components in each EMI.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan their finances, and compare different loan offers.

4. Using the Calculator

Tips: Enter loan amount in ₹, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are HDFC Bank's current car loan rates in Maharashtra?
A: Rates vary (typically 8.50% to 12% p.a.) based on loan amount, tenure, and applicant's profile. Check HDFC Bank's website for current rates.

Q2: Does this calculator include processing fees?
A: No, this calculates only the EMI. HDFC Bank typically charges 0.5% to 2% of loan amount as processing fee.

Q3: Can I prepay my HDFC car loan?
A: Yes, HDFC allows prepayment after 12 EMIs, but may charge prepayment penalty (usually 2-4% of outstanding amount).

Q4: What factors affect car loan eligibility?
A: Income, credit score, existing obligations, loan-to-value ratio, employment stability, and vehicle type.

Q5: How can I reduce my car loan EMI?
A: By increasing down payment, opting for longer tenure, or negotiating lower interest rate based on good credit profile.