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, EMI payments include both principal and interest components.

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 ÷ 12 ÷ 100)
• \( n \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan (principal + interest) over the loan tenure.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, compare loan offers, and plan their budget before taking a car loan from HDFC Bank.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate (as offered by HDFC Bank), and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC Bank's current car loan interest rate?
A: HDFC Bank car loan rates typically range from 8.50% to 14.50% p.a. depending on loan amount, tenure, and borrower's credit profile.

Q2: Does HDFC Bank charge processing fees for car loans?
A: Yes, HDFC Bank charges processing fees up to 1% of the loan amount plus GST, subject to a minimum amount.

Q3: What is the maximum tenure for HDFC Bank car loans?
A: HDFC Bank offers car loans for up to 7 years (84 months) for new cars and up to 5 years (60 months) for used cars.

Q4: Can I prepay my HDFC Bank car loan?
A: Yes, but prepayment charges may apply if done within 12 months of loan disbursement.

Q5: What documents are needed for HDFC Bank car loan?
A: Typically includes KYC documents, income proof, bank statements, car quotation, and RC/insurance for used cars.