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 Sri Lanka car loans, this includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly EMI payment (LKR)
• \( P \) — Principal loan amount (LKR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan over its term, including interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before committing to a car purchase.

4. Using the Calculator

Tips: Enter the loan amount in LKR, annual interest rate (as offered by HDFC Bank Sri Lanka), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are HDFC Bank Sri Lanka's current car loan interest rates?
A: Rates vary based on loan amount, term, and applicant profile. Check HDFC Bank Sri Lanka's official website or contact a branch for current rates.

Q2: Does this include insurance and other charges?
A: This calculator shows only principal and interest. Additional charges like insurance or processing fees may apply.

Q3: Can I prepay my HDFC car loan?
A: HDFC Bank Sri Lanka may allow prepayment with certain conditions and possible charges. Check with the bank for details.

Q4: How does loan term affect EMI?
A: Longer terms reduce EMI but increase total interest paid. Shorter terms have higher EMIs but lower total interest.

Q5: What factors affect loan eligibility?
A: HDFC Bank considers income, credit history, employment stability, and the car's value when approving loans.