Your Amortization Details (Yearly/Monthly)
A car loan is an unsecured advance, that can be availed from various financial institutions to purchase an automobile. In recent years, owing to a rapid decrease in the interest rates, the popularity of these credits has drastically increased.
HDFC is one of the leading financial institutions in India that offer these credits to individuals at competitive interest rates. With a tenure ranging up to 7 years, car loans offered by HDFC are affordable and offer individuals a high amount value with numerous benefits. Additionally, it also provides the facility of HDFC car loan EMI calculator that allows individuals to calculate their monthly repayment liability before they borrow the advance.
HDFC is India’s largest bank-based on market capitalisation and also is the largest lender of assets among private sector banks. This is because these advances offered by the financial institutions come with a plethora of benefits that make them extremely beneficial for borrowers.
Car loans offered by HDFC are some of the most sought after credits in this category because they come at extremely affordable interest rates, thus helping to reduce the repayment liability of borrowers.
However, before availing of the advance, individuals should calculate their EMI amounts to be able to plan their future finances better.
Thus, using an HDFC car loan EMI calculator to know the monthly repayment amount can help out borrowers significantly and impart them with the following benefits –
A HDFC car loan EMI calculator uses the following formula to calculate the EMI on advances availed to purchase automobiles –
EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)]
Where P is the principal component of the loan amount, R denotes the rate of interest calculated for each month, N gives the loan tenure (in months).
For instance, if an individual avails a car loan of Rs. 8 Lakh at a 9% rate of interest per annum, for a tenure of 5 years. His EMI will be given as –
EMI = [8,00,000 X 9% X (1+9%)^60]/ [(1+9%)^(60-1)]
Therefore, EMI = Rs. 16,607 (approx.)
The EMI payment for loan amortisation remains the same throughout the repayment period. However, in the amount calculated with an HDFC bank car loan EMI calculator the proportion of interest to principal changes over the years.
Following is the amortisation schedule calculated through the HDFC car loan calculator for the example cited above –
|Year||Principal (in Rs.)||Interest (in Rs.)||Total payable amount (in Rs.)||Balance|
Using Groww’s HDFC car EMI calculator can provide individuals with several benefits. These are –
Thus, this HDFC bank car loan calculator is an efficient, easy-to-use tool that can aid borrowers to know their exact monthly repayment amount. Therefore, it is one of the necessities for individuals to make sound decisions regarding borrowing an advance.
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