How to lower my car loan EMI?

A new car promises easier daily commutes, more enjoyable weekends and a better lifestyle. But it also means a monthly date with EMIs. 

So, what are the best ways to lower your EMIs on your car loan?

Competitive rates
The rate of interest you pay on your loan is one of the factors that influences the amount of EMI you pay. To get the most competitive rates, check that you have a good credit history. A bank will check your credit score through a rating agency like CIBIL, before finalising the loan. A good credit score – above 750 – will get you a better deal. 

HDFC Bank offers car loans at highly competitive rates with EMIs starting at as low as Rs 1,234 per lac.​​​​​​​

Longer tenures
Opting for a longer tenure will automatically bring down your EMI. For example, you will pay an EMI of Rs 2028 for a 5-year loan of Rs 1 lakh at 8% interest. But if you extend the tenure to 7 years, you can bring down the EMI by almost 25% to Rs 1559.
HDFC Bank offers flexible tenures of up to 7 years. You can easily calculate your EMI online with our Car Loan EMI Calculator.

Larger down payment:
You are happy with the interest rate and tenure and don’t want to change it. So, what options do you have then? If you can afford it, make a larger down payment on your loan. This will reduce your loan amount and, therefore, your EMIs. 

Prepayment:
If you want to reduce EMIs on an existing car loan, then consider prepaying a part of the loan if you have the funds to do so. Check with your bank about prepayment charges before you prepay. 

Balance transfer: 
Car loan balance transfer is the process of transferring your loan from one bank to another bank which offers more flexibility and competitive rates. If you are paying a higher rate of interest than the market or do not have the flexibility to extend the tenure, you could move your loan to another bank. Visit your nearest HDFC Bank branch to check for car loan balance transfer offers.

Looking to apply for a car loan? Click here to know more. 

* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd