HDFC Car Loan Calculator
The HDFC Car Loan calculator can help you estimate the amount you have to pay each month towards your car loan. The calculator will calculate the monthly installments and give you crucial details like the principal amount and interest amount being paid.
A car loan is a loan that one borrows from the lender for the sole purpose of purchasing a car of their choice. Lenders like banks and non-banking financial companies (NBFCs) offer auto finance to consumers in the form of new and used car loans. From luxury sedans to hatchbacks, car loans are available for almost all passenger vehicles and commercial vehicles in the market. A car loan is repaid with interest via Equated Monthly Installments (EMIs) over a specified period called the loan tenure.
EMIs are the monthly amount you must pay your lender to repay a loan or debt, such as a home loan, a car loan, a personal loan, etc. These EMIs include both the interest as well as the principal portions. An EMI is closed after the payment of the last installment and you can collect a NOC (no objection certificate) from the lender.
How Does The HDFC Car Loan EMI Calculator Work?
The formula used by the calculator to calculate your car loan EMI is as follows:
Where,
P is the principal home loan amount
r is the rate of interest per month
n is the loan tenure in months
Example
You are planning to buy a car and thinking about taking a loan for ₹56 lakhs. The interest rate of the loan is 10.5%. The duration of the car loan is 4 years. When we put the above values in the formula, we get:
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 56,00,000 x (0.105/12 x (1 + 0.105/12)^48) / ((1 + 0.105/12)^48 - 1)
EMI = 56,00,000 x 0.00875 x (1.00875)^48 / ((1.00875)^48 - 1)
EMI = 56,00,000 x 0.00875 x 1.549622616342 / 0.549622616342
EMI = 75,931.508200758 / 0.549622616342
EMI = ₹1,38,152 (approximately)
So, if you take a car loan for ₹56 lakhs at an interest rate of 10.5% for 4 years, you would have to pay an EMI of around ₹1.38 lakhs every month.
How To Use The HDFC Car Loan EMI Calculator?
The procedure that must be followed to use the car loan EMI calculator is mentioned below:
- Mention the loan amount you wish to take to buy your car.
- Enter the interest rate of the loan.
- Specify the repayment tenure.
The calculator will instantly calculate the results and show you the principal amount and interest.
Example
Ms. Chitra is looking to take a car loan for ₹18 lakhs. The bank is offering the loan at an interest rate of 12.75%. The repayment tenure of the loan is 3 years. Let's calculate her monthly EMI amount.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 18,00,000 x (0.1275/12 x (1 + 0.1275/12)^36 / ((1 + 0.1275/12)^36 - 1)
EMI = 18,00,000 x (0.010625 x (1.010625)^36 / (1.010625)^36 - 1))
EMI = 18,00,000 x 0.010625 x 1.4629899441545 / 0.4629899441545
EMI = 27,979.6826819548125 / 0.4629899441545
EMI = ₹60,433
So, if Ms. Chitra takes a loan for ₹18 lakhs at an interest rate of 12.75% for 3 years, her monthly EMI amount would be ₹60,433.
Benefits Of Using The HDFC Car Loan EMI Calculator
Below are some of the advantages provided by the car loan EMI calculator.
- The car loan calculator helps you calculate your monthly EMI. This can help plan your budget accordingly.
- The calculator offers accurate results.
- The calculator helps you save time by showing the results in a matter of seconds.
- The calculator can be used multiple times so you can compare the EMIs for different values.