Mumbai: Owning a car is everyone’s dream, but buying one requires lakhs of rupees, which is not easy for most people. In such cases, many people turn to banks for car loans. If you are also planning to buy a car through a loan, this update will be very useful for you. Today, we explain the interest rates offered by India’s largest private bank, HDFC Bank, on car loans.
HDFC Bank Car Loan Interest Rates
HDFC Bank offers car loans starting at 9.40 percent per annum. The exact interest rate may vary depending on your CIBIL score and the total loan amount. This means if you have a higher credit score, you can get the loan at a lower interest rate. So, before applying for a car loan, it’s always better to improve your CIBIL score.
EMI on Rs 7 Lakh Car Loan from HDFC Bank
Suppose you take a car loan of Rs 7 lakh from HDFC Bank at an interest rate of 9.40 percent, your EMI will depend on the loan tenure. Here’s how much you would pay:
Loan Tenure Monthly EMI (approx.) Total Amount Payable Total Interest Paid
3 years ₹22,460 ₹8.08 lakh ₹1.08 lakh
5 years ₹14,667 ₹8.80 lakh ₹1.80 lakh
7 years ₹11,431 ₹9.59 lakh ₹2.59 lakh
(Calculated at 9.40 percent interest, values approx.)
As you can see, a longer tenure reduces the EMI but increases the total interest cost, while a shorter tenure means higher EMI but lower overall interest.
