1. What is the Car Loan Payment Formula?

The car loan payment formula calculates the fixed monthly payment required to repay a car loan over a specified term. It accounts for the principal amount, interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (INR)
• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed payment needed to fully amortize the loan over its term, accounting for both principal and interest.

3. Importance of Loan Calculation

Details: Accurate payment calculation helps borrowers understand their financial commitment, compare loan offers, and budget effectively for their car purchase.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for HDFC Bank car loans?
A: Interest rates vary but typically range from 7.5% to 12% p.a. depending on credit score, loan term, and vehicle type.

Q2: Does this include insurance and other charges?
A: No, this calculates only the principal and interest payment. Additional charges may apply to your total loan amount.

Q3: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q4: Are there prepayment options with HDFC Bank?
A: Yes, HDFC Bank typically allows prepayment after a certain period, sometimes with prepayment charges.

Q5: What's the maximum loan term available?
A: HDFC Bank typically offers car loans for up to 7 years, depending on the vehicle age and type.