HDFC Bank Car Loan EMI Calculator

Team CARS24
Team CARS24

Updated on: 19th October, 2023 IST

Car Loan Closure Procedure at HDFC Bank

The HDFC bank is easily one of the most successful private sector banks in India. At the moment, it offers many finance options, including used and new car loan facilities, to its customers. The HDFC Bank offers car loans at attractive interest rates that start from 8.80% to 10.00% (Rack Interest). HDFC car loans that are presently being provided to the customers have a loan tenure of up to 7 years. The remarkable features of HDFC Bank Car Loan include finance of up to 100 percent of the on-road price of the vehicle, lower monthly payments, quick loan disbursement, provision of an optional health cover, and minimal paperwork.

How Does HDFC Bank Car Loan Calculator Work?

At present, every car loan EMI calculator that is on offer is programmed as per a standard formula and hence, absolutely same is the case with HDFC Bank car loan EMI calculator. It calculates the EMI at a given interest rate and for a given loan tenure using the below formula -

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]


‘P’ stands for the Principal amount

‘R’ stands for the monthly rate of interest

‘N’ stands for the number of instalments

It is important to understand here that the formula that has been provided above doesn't account for the pre-payment that one can make towards the loan taken from HDFC Bank.

HDFC Bank Car Loan EMI Calculator India 2020

Thanks to the several finance options that are available, today, buying a car is almost within the reach of many. One can simply avail a new car loan from HDFC Bank and drive home his or gear dream car. Currently, HDFC Bank offers new car loans at a rate of interest ranging from as low as 8.80%. It also charges a fairly low processing fee and offers a repayment tenure of up to 7 years. Not just this, it even offers a higher loan-to-value ratio, with up to 100% on-road price funding. HDFC Bank offers car loans to not just salaried employees but even to proprietorship firms, partnership firms, companies, trusts, and societies.

I order to make the loan repayment easy, all banks offer the EMI (Equated Monthly Instalment) facility. Therefore, before you apply for a car loan, you need to plan things efficiently. And this is where the HDFC Bank Car Loan EMI calculator comes in hand. At the moment, the new car loan interest rates that the HDFC Bank offers is 8.8% to 11.05%. However, at 9.5% rate of interest, the EMI per lakh for the total amount comes out to be Rs 8,768 for a 1-year loan and Rs 4,591 for a 2-year loan.

Loan Amount2 Year Loan4 Year Loan7 Year Loan
Rs 3 LakhRs 13,774Rs 7,537Rs 4,903
Rs 6 LakhRs 27,549Rs 15,074Rs 9,806
Rs 12 LakhRs 55,097Rs 30,148Rs 19,613

HDFC Bank Car Loan Benefits and Features

In case you have been thinking of purchasing a car in order to support your lifestyle, but have not been able to have enough savings for the same, you can still bring your dream car home by opting for a car finance scheme at HDFC. Being one of the most popular banks in the country, HDFC bank offers car loans at pretty attractive interest rates.

HDFC Bank New Car Loan

Below are the salient features of HDFC Bank new car loan-

  • The applicant can apply for finance of up to 100% of the on-road price of a new car. However, it should be mentioned here that this option is not available for purchase of all cars.
  • One can choose HDRF car loans for purchase of a wide range of cars and multi-utility vehicles in India.
  • The borrower can repay the loan through any of the multiple repayment options, ranging from 12 months up to a maximum of 84 months.
  • The borrower can take a car loan of up to six times of his annual income.
  • One can check his eligibility for HDFC car loan in less than a minute
  • HDFC offers fast approval of car loans, with it advertising a loan approval time of just 30 minutes.
  • There are several EMI options on each and every type of HDFC car loan.
  • One can even fast-track his or her car loan by opting for the HDFC Car loan scheme best suited for him or her.
  • HDFC new car loan is available at attractive interest rates ranging from 8.25% – 14.26% (Avg – 9.40%)
  • HDFC offers special car loan schemes to its existing customers.
  • HDFC offers new car loans of up to Rs. 1.5 Cr.

HDFC Bank Car Loan EMI Calculator Tenure

  • In the table that we have given below, you can see the EMI for various loan amounts borrowed at a flat rate of interest of 7 per cent. As can be observed the EMI changes as the tenure of the loan changes from 2 years to 7 years.
  • The EMI is higher when the loan tenure is shorter. However, the interest paid is higher if the tenure is longer.
  • It must be noted here that the EMI you are liable to pay to the bank comprises both the principal component (a fraction of the borrowed amount) and the interest that is applicable at the decided rare of interest at which you borrow the money. While the EMI remains the same throughout the loan period, the interest component of every EMI differs. It's the highest in the first EMI you pay and reduces with every instalment.
Loan Amount2 Years3 Years5 Years7 Years
1 LakhRs 4,477Rs 3,088Rs 1,980Rs 1,509
3 LakhRs 13,432Rs 9,263Rs 5,940Rs 4,528
5 LakhRs 22,386Rs 15,439Rs 9,901Rs 7,546
10 LakhRs 44,773Rs 30,877Rs 19,801Rs 15,093

EMI Calculator to calculate your interest on vehicle loan at different tenure

The table we have given below shows that longer the loan tenure, lower. is the EMI you need to pay to the lender every month. However, the interest you end up paying is considerably more for a given amount in case your loan tenure is longer. For example, if you take a loan of Rs 1,00,000 for a period of 5 years, you need to pay the lowest EMI of Rs 2,028. However, you end up paying Rs 21,658 in interest on a loan of Rs 1,00,000.

On the hand, in case you borrow Rs 1,00,000 from State Bank of India at the lowest available rate for a period of 2 years, you end up paying a higher vehicle loan EMI of Rs 4,523, while paying an interest of just Rs 8,546, which, in contrast, is less than half of what you would pay for the same loan amount borrowed for a tenure of 5 years.

Vehicle Loan EMI for ₹ 1 Lakh loan amount at 9% interest rate offered by HDFC Bank for different tenures2 Years3 Years5 Years
HDFC Bank EMI for a loan amount Rs 1 Lakh at 8.00% Rs 4,477Rs 3,134Rs 2,028
Total amount you pay, including interestRs 1,08,546Rs 1,12,811Rs 1,21,658
Total interest paidRs 8,546Rs 12,811Rs 21,658

Factors affecting HDFC Bank Car Loan EMI

For any car loan, there are in all three factors that affect the EMI of the car loan taken from HDFC Bank. The same has been given below -

  • Amount Borrowed – Basically, higher the loan amount, higher will be the EMI. Also, it must be mentioned here that HDFC Bank offers a maximum loan of up to 100 per cent of on-road price of the car.
  • Interest rate - Another important factor is the interest rate at which HDFC Bank gives you the car loan. Obviously, a higher interest rate will translate into a higher EMI over a given time period. At present, the lowest interest rate offered by SBI is 8.8 per cent.
  • Loan tenure – A loan tenure is the number of years you take a car loan for. At HDFC Bank, the largest possible loan tenure is of 7 years. It is important to mention here that larger the loan tenure, lower the EMI. However, you do nd up paying more interest over longer loan tenure periods.

HDFC Bank Car Loan Amortization Calculator

For the uninitiated, an amortization schedule is nothing but a periodic table of regular loan payments that show the borrower about the principal component and interest component of every EMI that he has to pay until the loan is paid back completely. It is important to note here that EMI is a fixed sum that comprises of a fixed principal amount and a fixed interest. For example, in case you borrow Rs 2 lakh for 2 years at an interest rate of 9.25 per cent, the EMI for this loan amount will be Rs 9,160. The total annual EMIs that are required to be paid is Rs 1,09,919. The table we have below shows the EMI schedule for 2 years –

YearInterest Paid During The YearPrincipal Repaid During The YearTotal Amount Paid During The Year (Interest + Principal)Outstanding Principal
2020 Rs 3,025Rs 15,295Rs 18,320Rs 1,84,705
2021 Rs 13,047Rs 96,872Rs 1,09,919Rs 87,832
2022 Rs 3,767Rs 87,832Rs 91,599Rs 0

HDFC Bank Car Loan Calculator Formula

All available car loan EMI calculators work on the same forumla, which is -

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]


P stands for the principal amount (basically the money you borrow)

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the loan tenure of loan in months

E is the EMI (equated monthly payment)

HDFC Bank Car Loan Tips

Before going ahead and applying for a used or new car loan at HDFC Bank, the below factors should be considered very seriously -

  • Decide the amount you must borrow: One should have an accurate estimate of the loan amount he or she needs to take before approaching the bank. The decided amount should be based on how easy it will be for you to pay back the money after accounting for your monthly expenses and financial requirements.
  • Calculate your HDFC Bank car loan eligibility: Your loan application can be rejected if you try to borrow more than your eligibility. This eligibility is calculated as per the borrower's repayment capacity based on the monthly income. Basically, there are two ways to decide the borrower's eligibility.

Multiplier based loan amount eligibility – HDFC Bank calculates the loan eligibility by applying a multiplier to your net take-home income. In most cases, the result turns out to be 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. Also, this multiplier is calculated based on your employer company's reputation, stability, size and growth in turnover.

FOIR based loan amount eligibility – The HDFC Bank even calculates your Fixed Income to Obligations Ratio (FOIR) to get to know the maximum EMI you can pay on basis of your current income and other monthly expenses. The proportion of fixed income to your calculated fixed obligations gives your FOIR. In most cases, banks are known to lend up to a maximum FOIR of 0.50.

HDFC Bank Car Loan EMI Prepayment

If you intend to pay back your car loan before the loan tenure gets over, you will need to pay a small penalty to the HDFC Bank. It charges a part pre-payment penalty of 5 per cent on the outstanding principal. HDFC Bank allows prepayment of a car loan after you've paid the first EMI. Through prepayment, you can reduce your loan tenure by paying the EMI for a shorter time period.


Q: Does HDFC Bank allow part-payments?

A: Yes, HDFC Bank allows part-payment of the loa. However, you'll have to pay a penalty of 5 per cent to the outstanding principal as part-payment charges.

Q: How to apply for an HDFC Bank Car Loan?

A: In case you plan to take a car loan from HDFC Bank, you can initiate the process through any of the below options -
- Online by visiting the home website of HDFC Bank
- Visiting an HDFC Bank branch that offers car loan services
- Calling the HDFC Bank Call Centre.

Q: What is the maximum loan amount I can get with the help of an HDFC Bank Car Loan?

A: The maximum possible new car loan amount you can get from HDFC Bank depends on your eligibility criteria. At present, HDFC Bank offers a minimum new car loan of Rs 1 lakh and offers finance of up to 100 per cent of the on-road price of the vehicle

Q: Can I foreclose my HDFC car loan?

A: Yes, you can foreclose or pre-close your car loan after paying a fine of 5% of the outstanding principal.

Q: Where can I get an HDFC Bank car loan application form?

A: You can get an HDFC Bank car loan application form from any branch of the bank. You can also submit the form online.

Q: What is the process of loan verification?

A: After the submission of the loan application, HDFC Bank follows the below procedure:
- Processing and approval of the application form
- Verification of documentation
- Sanctioning the loan
- Disbursement of the loan

Q: How long does the car loan process take?

A: HDFC Bank processes car loan applications quickly if you have submitted all the required documents and meet the eligibility criteria.

Q: What security is acceptable to HDFC Bank to get a car loan?

A: In case of HDFC Bank car loan, the car itself serves as security as it is hypothecated to the bank for until the loan is paid back.

Q: Can I cancel my loan application before it is sanctioned or disbursed?

A:Yes, you can cancel your loan application before it is sanctioned or disbursed. However, the bank will charge a penalty for the cancellation.

Recently Added Cars to Buy

Other Blogs


Popular Cities to Sell Car