1. What is the Vehicle Loan Payment Formula?

The vehicle loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term. HDFC Bank and other lenders use this standard formula to determine EMI (Equated Monthly Installment) payments.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: The formula accounts for both principal repayment and interest charges, spreading the payments equally over the loan term.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also shows the total interest cost over the loan term.

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 vehicle loans?
A: HDFC Bank's interest rates vary (typically 7.5%-15% p.a.) based on loan amount, vehicle type, credit score, and tenure.

Q2: Are there any additional charges?
A: HDFC may charge processing fees (0.5%-2.5% of loan amount), documentation charges, and applicable taxes.

Q3: What is the maximum loan tenure available?
A: HDFC typically offers up to 7 years for new cars and 5 years for used cars, subject to vehicle age.

Q4: Can I prepay my HDFC vehicle loan?
A: Yes, but prepayment charges may apply (usually 2%-5% of outstanding amount if done within first year).

Q5: What is the minimum down payment required?
A: HDFC usually requires 15%-25% of the vehicle's on-road price as down payment.