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.
How Can an HDFC Car Loan Calculator be Beneficial?
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 –
- It enables individuals to calculate an amount they can afford to borrow.
- It helps to choose the most convenient tenor for individuals to ensure that they can repay the advance without any hassle.
- The HDFC car EMI calculator leaves no room for inaccuracies and saves individuals from the cumbersome process of manual calculations.
- It is accessible from any device and is available 24×7 for a borrower’s use.
How Does the EMI Calculator Work?
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.)
Amortisation Schedule –
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|
Advantages of Using Groww’s EMI Calculator –
Using Groww’s HDFC car EMI calculator can provide individuals with several benefits. These are –
- It displays the accurate result ad saves borrowers from the time-consuming task of calculating EMI amount manually.
- It provides the result based on the fractional interest rate provided by the bank.
- The HDFC car loan EMI calculator is accessible 24×7 and is available without any registrations.
- The data entered in the calculator is secure.
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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Frequently Asked Questions
- What is the minimum EMI offered per lack on car loans by HDFC Bank?
HDFC offers this advance at an interest rate of 9.25%, and thus the lowest EMI offered per lakh is Rs. 1622.
- Are there any processing charges levied on car loans by HDFC?
HDFC charges a processing fee of 0.40% on its car loans, up to a maximum amount of Rs. 10,000.
- Can individuals opt for a co-applicant to borrow a car loan from HDFC?
Yes, HDFC provides the option to avail a car loan jointly with an applicant. Availing of this facility also helps to increase an individual’s eligibility to avail this advance.
- Can individuals pre-pay their car loan?
Individuals can pre-pay their car loan but not before 6 months of the tenure is complete. After that, they will be levied a specific charge for prepayment.