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When one takes a HDB Financial Services Used Car loan, a natural question that comes to mind is how much the EMI would (Equated Monthly Installment) be that one must pay back to the bank every month.

Hope the following FAQ’s about HDB Financial Services Used Car loan will answer all your questions

HDB Financial Services Used Car loan Calculator – interest rates, eligibility criteria, application process, documents required, tax benefits, schemes, tips before applying

What is HDB Financial Services Used Car loan Calculator?

A HDB Financial Services Used Car loan calculator helps you know the amount of the EMIs that you will need to pay towards your Used Car loan and helps make an informed decision. The EMI-Calculators.com's HDB Financial Services Used Car loan calculator also functions as aHDB Financial Services Used Car loan interest calculator, as you will be able to know the interest amount due on your HDB Financial Services Used Car loan, in addition to the overall EMI amount, in just 3 simple steps. First, enter the loan amount that you wish to take. Then, select your preferred tenor. Finally, put in the HDB Financial Services Used Car loan interest rate advertised on the website. That's all!

What is HDB Financial Services Used Car loan?

EMI stands for Equated Monthly Instalment. EMI is the monthly repayment that a HDB Financial Services Used Car loan borrower must make to repay the HDB Financial Services Used Car loan within the specified loan tenor.

The following table illustrates the EMI on several HDB Financial Services Used Car loan amounts with different tenures. The applicable rate of interest is 8.60%* onwards.

Factors that Affect HDB Financial Services Used Car loan

Principal- The principal is the loan amount that you avail from the lender. It is directly proportional to your EMIs - lower principal will lower your monthly instalments and vice versa.
Rate of interest- The rate of interest is the rate at which the lender offers you the loan. It is also directly proportional to the value of your loan EMIs.
Tenure- The tenure is the time within which you repay your loan. The tenure is inversely proportional to your loan EMIs - longer tenure makes the monthly instalments cheaper and vice versa.

Eligibility Criteria for HDB Financial Services Used Car loan

Minimum and Maximum Age	21 Yrs. – 65 Yrs. Note: However, many banks require minimum age of 18 years
Loan Amount	Upto Rs. 10 lakhs. Some banks give maximum loan upto Rs. 50 lakhs Note: Loan amount depends upon the value of the Used Car and the EMI you can pay
Net Monthly Income	Min. Rs. 18,000 per month
Employment Type	Salaried and Self Employed Interest rates are typically in the range of 7.75% to 29.00% per annum
Minimum Work Experience	1 year of total work experience Business tenure should of 5 years & ITR required for at least 2 years (For Self Employed only)
CIBIL Score for HDB Financial Services Used Car loan	700 & more credit history Note: Most banks avoid giving loans if you have low credit score

Documents required to apply HDB Financial Services Used Car loan

Salaried Employees:

Filled up loan application form
2 Passport Size Photo
Copy of Income Tax PAN
Identity Proof – Aadhaar, Passport / Driving License / Voter ID / PAN
Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
CIBIL Report
Used Car quotation

Self-Employed:

Filled up loan application form
2 Passport Size Photo
Copy of Income Tax PAN
Identity Proof – Aadhaar, Passport / Driving License / Voter ID / PAN
Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
CIBIL Report
Used Car quotation

HDB Financial Services Used Car loan for Different Loan Amounts

Following table shows the EMIs for various loan amount based on different tenures at 8.60%* onwards

The EMI that you can avail with HDB Financial Services Used Car loan of 10 Lakh is 10,024 with 15-years tenure. The EMI increases when you opt for tenure of 5 years.
The EMI for a loan of 15 Lakh is higher – 30,992, when you opt for 5-years. It decreases to 15,036 if you opt for tenure of 15 years.
For a loan of 25 Lakh, the cheapest EMI you can avail with 15 year tenure - 25,060. Decreasing the tenure to 5 years increases the EMI to 51,654.
The EMI is 72,315 when you avail loan of 35 Lakh for 5 years. The same will decrease to 35,084 if you increase the tenure to 15 years.
The cheapest EMI comes with 15-years tenure with loan of 50 Lakh – 50,120. The EMIs double when you opt for 5 years tenure.

Step by step guide before having HDB Financial Services Used Car loan:

Step 1 : Check HDB Financial Services Used Car loan and calculate HDB Financial Services Used Car loan eligibility – HDB Financial Services Used Car loan Calculator

As you decide to take a HDB Financial Services Used Car loan, always estimate your loan amount eligibility to know the loan amount you will be eligible for and can apply for. Also calculate the monthly EMI that you can comfortably service given your net take personal salary and other existing fixed obligations including rent and EMIs on other existing loans, if any. Your house loan eligibility is calculated based on your age, net income, existing obligations, property type, LTV ratio and other factors. EMI is dependent on the loan amount, interest rate and tenure. Once you understand your minimum loan requirement, your eligibility and monthly EMI you can comfortably service, shortlist the banks which offer you maximum loan amount to meet your requirements.

Step 2 : Check loan approval status and legal documents – HDB Financial Services Used Car loan Calculator

If you are buying a property from builder, then check for the banks which have approved the projects you have shortlisted. For resale property, check the approved map plans and ensure that all property registration papers for the complete chain from the first owner to current owner are in place. Shortlist the banks which lend on your chosen property.

Step 3 : Decide on type of HDB Financial Services Used Car loan interest rate offers – HDB Financial Services Used Car loan Calculator

As you narrow down the list of banks in Step 2 and 3, you need to conduct an interest rate on HDB Financial Services Used Car loan comparison of the loan offers of various banks. Some of the interest rate offers that needs to be checked are:

Choice between fixed and floating rates – Fixed rates come at a slightly higher rate of interest compared to floating rate loans and interest rate remains constant during the tenure of HDB Financial Services Used Car loan. In floating rate loan, interest rates are reset at periodic intervals in response to changes in MCLR and PLR rates of banks or NBFCs. Majority of HDB Financial Services Used Car loans in India today are floating rate loans as it allows the borrowers to get HDB Financial Services Used Car loan interest rate in line with the current interest rates.

Decide if you need a home saver loan – This is a loan with overdraft facility which allows you to deposit surplus amount in your HDB Financial Services Used Car loan overdraft account as and when available, allowing you to reduce your overall interest amount. This loan is highly recommended for salaried individuals with high bonuses and self employed business which is seasonal and has fluctuating cash flows. The interest rates on overdraft loan is slightly higher than that of a regular HDB Financial Services Used Car loan interest rate.

You can also evaluate a mortgage guarantee house loan as it covers any default risk and allows the lender to give you loan at low rate of interest. You will however need to pay a mortgage guarantee fee to the bank.

Check and compare the current HDB Financial Services Used Car loan interest rates of the banks on various types of loan products and take an informed decision.

Step 4 : Compare shortlisted banks | HDB Financial Services Used Car loan Calculator

In addition to interest rates, banks also charge many other fees on HDB Financial Services Used Car loans. Along with interest rates, you should check other associated costs with a your loan which include prepayment charges, processing fee, insurance premium and other charges offered by the shortlisted banks. You should calculate all inclusive costs on HDB Financial Services Used Car loan to be able to further shortlist the banks and reduce your choice to 2-3 banks.

Step 5 : Select the bank based on other service related parameters | HDB Financial Services Used Car loan Calculator

Finally as you decide to take the loan, also consider other service and transparency related parameters of the chosen banks. Some of these factors are turnaround time offered by the banks, quick loan delivery, doorstep services, transparency in the loan process. You also need to understand the trends and changes in MCLR rates over a period. Last but not the least, read reviews of existing customers on banks on their services, interest rates and transparency to take your decision to borrow from a bank.

Comparison of HDB Financial Services Used Car loan Interest Rates in India

Processing fees – Most banks charges minimum processing fees of Nil to upto Rs.1,000. To get lowest fee, comparison of HDB Financial Services Used Car loan rates, offers and cashback applying online after comparison

Insurance premium – HDB Financial Services Used Car loans are secured loans, but it is advisable to take an insurance policy when availing a loan. However, the premium varies from bank to bank depending upon the risk coverage under various policies. So, check the loan sanction letter Used Carefully to know the coverage and premium.

Prepayment and foreclosure – When you want to repay your Used Car loan partially before time, it is called part prepayment. In case you decide to pay the entire HDB Financial Services Used Car loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to even upto 3%. So, check Used Carefully if the low interest rateHDB Financial Services Used Car loan you are getting comes with high prepayment or foreclosure charges. Note that some HDB Financial Services Used Car loans cannot be repaid before time.

Down payment – Banks offer HDB Financial Services Used Car loans either at 80% of on-road price or 100% of ex-showroom price. However, 80% of on-road is almost equivalent to 95% of ex-showroom price. You are advised to fund maximum as down payment as it reduces your burden of high monthly payments.

Do’s and Don’ts while taking HDB Financial Services Used Car loan

To get best and lowest HDB Financial Services Used Car loan interest rates online, read the do’s and don’ts mentioned below.

Do’s	Don’ts
Check best discount and offers – Always check current offers and Used Car loan interest rates offered to employees of large reputed companies	Do not apply for loan amount more than what you are eligible for – Applying for an amount higher than your eligibility may lead to rejection of your loan application
Compare Used Car rates based on loan amount – Some banks offer lowest interest rate for HDB Financial Services Used Car loan at higher loan amount Used Carefully decide on which type of insurance would be necessary - Comprehensive, Third Party, or Zero Dep insurance. Check and compare the cost, coverage and claim settlement ratio.	Do not apply with multiple banks – Simultaneous loan applications gets recorded in your CIBIL report and can hurt your chances of getting a HDB Financial Services Used Car loan
Discount for tenures – Banks may offer lower rates on HDB Financial Services Used Car loan for certain tenure	Your salary bank may not offer the cheapest loan – Various banks keep offering attractive schemes to acquire premium customers. Hence, salary bank may not be the best option

Schemes under HDB Financial Services Used Car loan related to EMI and Interest

EMI in arrears scheme – This is a standard method of paying EMI where the interest for a month (and principal repayment) is payable at or after the end of the month.

Advance EMI scheme – Under this scheme, you pay interest and EMI at the beginning of the month. So, each month, you pay interest on amount that you have already repaid to the bank at the beginning of the month.

Caution – In case your bank charges EMI in advance, the EMI amount should be about 1% lower than that in case of EMI in arrears. For those interested in more precise figures, EMI per Rs. 1 lakh loan amount on a 5 year HDB Financial Services Used Car loan at 10% rate of interest as per EMI in arrears method comes to Rs. 2,125 while that as per EMI in advance method comes to Rs. 2,107.

Zero interest scheme (also called 0% finance scheme) – This is one of those free lunches scheme that actually doesn’t exist. So, beware of schemes that claim to offer zero interest. It is likely that the Used Car company is offering a subvention scheme whereby the interest is paid by it to the bank upfront. Now, you could always ask the Used Car dealer for the same amount as a cash discount. It’s like padding up the price of the Used Car for the interest amount and marketing it under a nice name.

Flat rate of interest scheme – In this method, you pay interest on the entire principal amount of loan till maturity. So, on a loan of Rs. 5 lakhs at 10% for 5 years, you would have to pay back a total of Rs. 5 lakhs plus interest of Rs. 50,000 a year, that is a sum total of Rs. 7,50,000. The EMI in this case would be Rs. 12,500.

Reducing balance scheme - In this method, you pay interest on the amount outstanding each month. With each EMI, the balance principal amount keeps reducing. So, on a Rs. 5 lakh loan at 10% for 5 years, you would have to pay back a total of Rs. 5 lakhs plus interest on reducing basis which comes to Rs. 1,37,411 or Rs. 6,37,411 including principal. The EMI in this case would be Rs. 10,624, a good 15% less than that for a flat rate scheme.

Caution – Never get hoodwinked with the low rate of interest offered on a flat rate scheme. A flat rate of 10% is equal to an interest rate of 18.7% on reducing rate basis on a 5 year HDB Financial Services Used Car loan.

HDB Financial Services Used Car loan Calculator FAQs

What are the extra charges?

Apart from rate of interest, there are two types of charges being charged by the banks.

HDB Financial Services Used Car loan processing fee: This is charged when you apply for the loan. The processing fee charged is upto Rs. 3,000 of the loan amount and could be reduced if you can bargain.
HDB Financial Services Used Car loan pre-closure fee: This is charged when you close your loan before the completion of loan tenure. Prepayment penalty charged may be up to 5% of the outstanding amount.

Is CIBIL Score for HDB Financial Services Used Car loan important?

CIBIL score is very important. Good CIBIL score indicates good repayment record and hence banks can offer you higher loan amount at low rate of interest for HDB Financial Services Used Car loan. Bad CIBIL Score will result in either loan at higher interest rate or rejection of the loan application. So, make all your payments on time and maintain your CIBIL in order to get best HDB Financial Services Used Car loan rates.

Can I apply jointly with my spouse?

Yes, you can apply for loan jointly with a co-applicant (either your spouse or your parents). This helps you to increase your eligibility. Hence you may get higher loan amount as your co-applicant’s income also gets added to your income. In co-applicant cases, the total income is taken into consideration for calculating the eligibility.

Does it affect my co-applicant if I default in loan?

Yes, if you fail to pay the loan on time then it will also affect your co-applicant. Default in loan will affect his/her CIBIL rating as well.

Can I get a loan for the full cost of my Used Car?

Typically, banks loans only up to 80% to 90% of the total cost of the vehicle. However, there are a few banks that may cover the entire cost of the Used Car.

Is a guarantor mandatory for a new HDB Financial Services Used Car loan?

In case you are unable to meet the eligibility, criteria set by the lender, then a guarantor is mandatory.

What is the minimum amount of loan we can apply for?

In most cases, you can apply for a minimum loan of Rs. 1 Lac.

Is there a provision to pre-pay the entire loan amount?

A small fee in the form of pre-payment penalty will be chargeable by the bank, but yes, it is allowed to pre pay the loan amount and save vital interest payments. This however is subject to a minimum period for which the loan must be held which is usually 6 months.

Are all Used Cars financed by the loan institutions?

All small to medium sized Used Cars, Sport Utility Vehicles (SUV) and Multi Utility Vehicles (MUV) usually come under the HDB Financial Services Used Car loans finances available in India.

What is the minimum and maximum tenure of HDB Financial Services Used Car loan?

HDB Financial Services Used Car loan is generally taken for a short period of time. Generally, HDB Financial Services Used Car loan tenure is between 3 years to 8 years.

What is ex-showroom price and on road price?

Ex-showroom price is the price of the Used Car including excise duty but excluding local duties and statutory charges.

On road price is the price you pay for the Used Car including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on road price tends to be 15-25% more than the ex-showroom price and may vary from city to city.

How can I prevent rejection of my loan application?

Banks or NBFCs give Used Car finance to those borrowers about whom they are sure that he/her can repay the loan. You need to know few things if you don’t want your application to get rejected:

Job stability for HDB Financial Services Used Car loan is important. You need to be stable in your current job as too many job changes can impact negatively at the time of loan approval
You should not be having too many loans running at one time. Banks can reject your application if you are already paying too many EMI’s at same time.
Don’t give you landline number for tele-verification if you know that nobody else is there at home when you are at work. A typing mistake in apartment number can also put negative impact on lenders.

Banks or lenders keep on adding these small things and reject your loan application.

What should I do if my HDB Financial Services Used Car loan application gets rejected by bank?

Some possible reasons why your application gets rejected are already running multiple loans and hence a bank may be in doubt about your repayment ability of a new loan.

In this case, if you have a spouse who is also working, you can add him/her as a co-applicant to boost the combined salary levels.
Clear your old debts first so that your leverage levels come down.
Balance transfer of your existing loans so that the rate of interest on loans can come down and additional loan can be availed.

What is the interest rate on the HDB Financial Services Used Car loan?

The interest rate for a HDB Financial Services Used Car loan starts at 18.00%. The interest rates may vary across different Banks. Further, the interest factor is also dependent on the type of two-wheelers you wish to buy, the income of the applicant, age, and occupation.

How to finance a Used Car?

Opting for a HDB Financial Services Used Car loan is the easiest way to finance a Used Car. A variety of Banks and other lenders could provide you with funds to buy your dream Used Car. However, one needs to meet the essential eligibility criteria and documentation requirements.

Can a student get a HDB Financial Services Used Car loan?

A student can apply for a HDB Financial Services Used Car loan if he or she fulfills the basic eligibility criteria. An applicant must be a minimum of 21 years of age. However, the loan can be applied only with a co-applicant, who has a good CIBIL score and a fixed, reliable source of income.

How much can I pay as a down payment on a Used Car?

A down payment usually ranges from 15-30% of the two-wheeler value. However, it may vary across the lender. The amount of down payment made on the two-wheeler will decide the EMI of the HDB Financial Services Used Car loan. The bigger the down payment, the lower the EMI.

What benefits do I get by calculating my EMI before taking an HDB Financial Services Used Car loan?

Calculating your EMI before taking a loan can help you in the following ways:

You can manage your monthly expenses better. Once you know how much you must pay towards your loan each month, you can then budget the other expenses accordingly. You will be able to determine what tenure to choose depending on how much you can afford to repay every month. Planning prepayments and pre-closures can be done easily, helping you pay off your loan faster.

2. Will my EMIs change in case of prepayment?

When you prepay a part of your loan, the outstanding principal will reduce. This allows you to opt for a lower EMI while keeping the loan tenure the same. Or, you can maintain the same monthly instalment as before and reduce the tenure of the loan. It is advisable to maintain the same EMI and reduce the tenure since this will reduce the amount of interest you pay in the long run.

3. Can I use the same EMI calculator for all banks?

Yes. An EMI calculator is a common tool and is not tied to any bank or financial institution. If you know your principal, interest rate, processing charges, and tenure, you should be able to generate your EMI. BankBazaar’s calculator also allows you to factor in prepayment details.

4.How accurate is an EMI calculator?

An EMI calculator estimates your loan repayment details based on the data you give it. But the EMI that your bank gives you may be a little different due to other charges involved in the calculation. Also, if your Used Car loan is subject to a floating rate, then the interest rate changes every year based on the MCLR or base rate change. Even a slight change in interest rate will make a difference to the total loan amount you repay, depending on the duration of the loan. These variables limit the accuracy of an EMI calculator.

5. Why are the interest charges in the repayment table slightly higher during the initial months of the loan?

The interest rate of your loan is applied based on “reducing balance principle”. Because of this, the interest will be slightly higher during the initial phase since the principal outstanding is higher. As this amount reduces, the incidence of interest will also come down proportionately.

How is HDB Financial Services Used Car loan Calculated?

Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly.

E = P x r x (1+r)^n/((1+r)^n – 1)

E is the amount that you will have to pay every month; basically, the EMI.
P is the amount that you want to borrow.
r is the rate of interest that is applicable but calculated on a monthly basis instead of the annual rate of interest. It is obtained by using the formula r = (annual interest/12) x 100.
n is the duration of the loan in terms of months. So if you select a term of 5 years, n will be 60.

EMI is just the amount you (borrower) repay to the bank, each calendar month, to clear your outstanding loan.You have to repay the EMI each month, on a particular fixed date, for the entire duration (tenure) of the loan, till you repay the entire outstanding amount. (amount borrowed + interest).

For Example, if you borrow 10,000,000 units of a currency from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI = Units of currency 10,000,000 * 0.00875 * (1 + 0.00875)^120 / ((1 + 0.00875)^120 – 1) = Units of currency 134,935. i.e., you will have to pay total currency units 134,935 for 120 months to repay the entire loan amount. The total amount payable will be 134,935 * 120 = 16,192,200 currency units that includes currency units 6,192,200 as interest toward the loan.

How to Calculate EMI for HDB Financial Services Used Car loan?

Calculating the EMI amount on your HDB Financial Services Used Car loan is quite easy. Simply enter the loan amount you wish to take, the tenor (in months, and not years) and the rate of interest, in the required fields.

Once you find the EMI calculator for HDB Financial Services Used Car loan, To calculate the amount of EMI, you need to put the following inputs in the EMI calculator:

Loan Amount – The principal amount borrowed from the bank or financial institution is known as the loan amount.
Interest Rate – Interest rate can be either fixed or floating.
Loan tenure – Is the time over which you choose to repay the loan.

The result will be your EMI, the total interest you’ll be paying and the total amount you’ll be paying by the end.

What are the Advantages of Knowing HDB Financial Services Used Car loan in Advance?

Good planning always ensures stable finances. Calculating the HDB Financial Services Used Car loan in advance gives a better understanding of the amount of money you would have to spend every month. Hence, you can plan well and decide whether you are able to spare that much money or not.

Components of a HDB Financial Services Used Car loan Calculator?

Amount of loan to calculate EMI
Loan term (months or years) to calculate EMI
Rate of interest (percentage) to calculate EMI

How to use HDB Financial Services Used Car loan Calculator?

Using the EMI Calculator is a very simple process. All you need to do is follow these steps–

Go the HDB Financial Services Used Car loan Calculator page
Choose the loan amount, rate of interest, and tenor (in months)

That's all! You will instantly get your HDB Financial Services Used Car loan amount along with the interest amount payable on the loan.

What are the Advantages of a HDB Financial Services Used Car loan Calculator?

A HDB Financial Services Used Car loan Calculator helps you to decide whether you can afford the financial commitment of a Used Car loan in the long term. If you want, you can increase or decrease your EMI amount depending on the amount of loan you are taking and the time period for which you'll be paying the EMIs.

Quick Results – Applicants can easily use this calculator to calculate the EMIs that they will be liable to pay for the pre-determined tenure and interest rate that the HDB Financial Services Used Car loans are offered, in mere seconds.

Simplicity – The calculations using this EMI calculator for HDB Financial Services Used Car loan are based on the applicant providing three key bits of information i.e. the principal amount of the loan, the applicable rate of interest and the loan tenure.

Varying Combinations – With the HDB Financial Services Used Car loan calculator, you can easily input different interest rates and tenures to look for a combination that will allow you to easily repay the principal amount, without putting undue pressure on your finances.

Free Usage – The EMI-Calculators.com's HDB Financial Services Used Car loan calculator is a user friendly HDB Financial Services Used Car loan calculator that is available to everyone free of charge and is easy to use

What Is a HDB Financial Services Used Car loan Amortization Schedule?

A HDB Financial Services Used Car loan amortization schedule is the table or record which details all the periodic payments on your loan. This is generated through an amortization calculator.

Amortization is basically the procedure of repaying a loan through regular payments over a specified period. An amortization schedule is the total tally of loan payments showing the amount of interest and principal contained in each payment, until the loan is repaid in full.

What are the factors that impact monthly HDB Financial Services Used Car loan?

The estimated monthly investment (EMI) depends on a number of factors such the amount, the tenure of the loan, and the interest rate. The estimated monthly investment (EMI) differs according to the loan type and the amount. If the interest rate of the loan is fixed, the estimated monthly investment remains fixed as well for the entire time the loan is active. The borrower can also opt for a pre-payment wherein the estimated monthly investment (EMI) gets reduced. If the interest rate is floating, the EMI is also floating.

What is Flat/Fixed Rate of Interest? And Flat/Fixed Rate of Interest Effect your EMI for HDB Financial Services Used Car loan?

A fixed rate of interest is one where the interest rate on a loan remains fixed throughout the loan repayment period (loan tenure). This type of interest rate is comparatively higher than a floating rate of interest. Fixed rate of interest is better for those who don’t prefer the risk of fluctuation that is an integral part of a variable interest rate. In the case of a fixed rate of interest, the loan EMI remains the same throughout the loan tenure.

The online loan EMI calculator can be used to calculate loan EMIs with a fixed rate of interest. The different Interests Rates that can be implied in a Loan contract are Fixed Interest Rate and Floating Interest Rate.

Fixed Interest Rate means interest payment on loan will be in fixed equal installments over the entire period of the loan. The interest rate will not change regardless of any market fluctuations.

Benefits of Fixed Interest Rate:

Interest Rate does not change as per the market fluctuations
Having a fixed interest rate brings a sense of safety and security for the borrower
Since it entails a fixed monthly repayment schedule, it helps in easy budgeting

Drawbacks of Fixed Interest Rate:

Generally, Fixed Interest Rates are 1%-2.5% higher than Floating Interest Rate
Fixed Interest Rates are subject to change as per the market fluctuations, hence if by chance the interest rate decreases, the fixed rate HDB Financial Services Used Car loan won’t be benefited as the borrower will have to pay the same fixed amount every month.

What is Floating Rate of Interest? And Floating Rate of Interest Effect your EMI for HDB Financial Services Used Car loan?

Floating rate of interest changes depending on the market-lending rate. It is also known as variable rate of interest. If the lending rate increases, the floating interest rate will also increase. Due to the risk of fluctuation, the floating rate of interest is usually lower than the fixed rate of interest. With a floating rate of interest for a specified loan tenure, you can either expect your EMI to reduce or increase depending on the rise in the interest rate.

The online loan EMI calculator for HDB Financial Services Used Car loan can be used to calculate loan EMIs with a Floating rate of interest.

Floating Interest Rate is the rate which changes as per the market conditions. Loans on floating interest rates are tied to a base rate PLUS a floating element thereof.

Benefits of Floating Interest Rate:

Floating Interest Rates are cheaper than Fixed Interest Rate
During the long term, even if the floating interest rate rises up the fixed interest rate, they will eventually fall. Hence ensuring a lot of savings.

Drawbacks of Floating Interest Rate:

Due to frequent fluctuations in interest rate, the nature of monthly installments is quite uneven.

Hence it is necessary that you conduct a proper cost and benefit analysis before choosing among Fixed and Floating Rate of Interests.

Why should I use a HDB Financial Services Used Car loan calculator?

The simplest answer is that it’s fast and it’s convenient. This means that you can do multiple calculations in minutes where such calculations many take longer were you to sit down with a pen and paper. These calculators are also super accurate, so it eliminates the possibility of errors in calculations, provided you provide accurate data.

Will banks provide the HDB Financial Services Used Car loan calculator?

Yes. These days most, if not all, banks have HDB Financial Services Used Car loan calculator, specific to various loans, available on their websites.

How much should I pay as monthly EMI for HDB Financial Services Used Car loan?

Monthly EMI for HDB Financial Services Used Car loan depends upon your income and expenses. Generally, banks advise you to limit your EMI to 35% to 45% of your net income so that you can pay your EMI without any burden or difficulty. You can calculate your EMI online which will help you to know your repayment capacity.

What if I miss EMI payment for HDB Financial Services Used Car loan or there is an ECS bounce?

If you miss your EMI payment on your HDB Financial Services Used Car loan or if there is an ECS bounce then bank may charge a penalty. In addition, it will also be reflected in your CIBIL report and your CIBIL score may get impacted.

What if I get delay in paying the HDB Financial Services Used Car loan EMI?

Banks charges penalty for delaying EMI payment for HDB Financial Services Used Car loan. The amount of penalty varies from bank to bank.

Why it is necessary to calculate EMI beforehand?

It is important to calculate your EMI in advance to maintain stability in future payments. When you avail loan for your house, you promise the bank to pay a fixed amount at fixed date every month. So, before availing theHDB Financial Services Used Car loan you should consider the stability of your income, monthly expenses and the existing loan obligations to avoid any discrepancies in future payments.

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