India is fast moving to a lifestyle that demands convenience and comfort. And four-wheelers are increasingly becoming a go-to option for the Indian middle-class population. Car loans provide relief to people who do not have the money or the wish to invest such a large amount in buy a car.
A car loan EMI calculator is a free online tool that instantly calculates the car loan EMIs so that you can plan your car purchase and the loan repayment better.
The EMI calculator for car loans is available online on various lending-related websites. All you have to do is enter the loan amount, rate of interest, and loan tenure – the car loan calculator will then calculate your amortization schedule and display the EMI amount in just a few seconds.
₹24,959
₹34,90,279
₹59,90,279
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1],
Where,
The following are the advantages of using a car loan EMI calculator:
Once you fill in the details and enter, the EMI calculator instantly computes the EMI value.
Manual calculation of EMI is a time-consuming process. EMI calculator for car loans quickly does complex calculates to determine your EMI, thus saving your time.
The car loan EMI calculator does complex calculations without any errors as it totally eliminates the possibility of any human intervention.
Use it as many times as you want to come up with multiple EMI variations until you derive at the desired EMI amount.
The tool allows you to calculate the EMI with varying input values. This makes it easier for you to make a comparative analysis of the different combinations and permutations of schemes to derive an EMI amount best suited for you.
The car loan EMI calculator helps you understand what impact your EMI will have if you plan to prepay your car loan.
Interest on a car loan is one of the prime components of the EMI. The car loan EMI calculator provides clarity on the total amount of interest you would pay throughout the loan tenure.
Under the floating rate, the EMI is calculated based on the interest rate applicable at that time as it changes based on the market lending rate.
In fixed rate, the interest rate remains the same throughout the loan tenure.
Let’s understand the impact of these three interest rate calculation types on the car loan EMI amount:
In this method, the interest is calculated on the original principal amount throughout the loan tenure. For example, if you take ₹ 5 Lakhs for 5 years at a 10% flat interest rate of interest for a period of 5 years, the EMI you need to pay every month is ₹ 12,500.
Interest payable per year= 500,000* (10/100) = 50,000.
Interest payable for 5 years= 50,000 * 5 = 250,000
The total interest amount of ₹250,000, along with the principal amount of ₹5 Lakh is distributed over the entire loan tenure to come up with the monthly EMI.
EMIs are higher in the case of the flat interest rate method of calculation.
Here, the interest rate is applied only on the outstanding loan amount. In this method, the interest rate is higher than the flat rate, but it can be cheaper as the interest is paid only on the outstanding principal amount. As you keep making your repayments, your principal will gradually reduce, and as a result, the interest applied will also be reduced. Also, EMIs are lower with a reducing rate. For example, for a car loan of ₹ 5 Lakhs at a 10% rate of interest for a loan tenure of 5 years, the EMI will be ₹ 10,624.
Although they claim to offer zero interest, such schemes, in reality, do not exist. The car company may offer a subvention scheme where they pay interest to the bank upfront. You could ask the dealer for a discount for the same amount.
Fill up basic details such as age, city, PAN number, & income so we can determine your eligibility.
After the approval from our system, we’ll schedule a KYC visit to your house / office to collect documents.
Credit line is ready to use! From the approved limit, transfer as much money as you need to your bank account.
With MoneyTap’s line of credit you will have money available instantly 24x7 to use anytime, anywhere. Click below to experience its power.
Apply now5 years and counting as India’s 1st app based Credit Line
Happy faces
Loans disbursed
Years of service
Downloads
A car loan EMI is the Equated Monthly Instalments that the borrower has to pay on a pre-decided date of the month throughout the loan tenure. The EMI constitutes the principal component and the interest component.
The car loan EMI is not fixed. It depends on the type of interest rate – fixed or floating – you have chosen to have on your car loan. If the interest rate is fixed, then the EMI amount remains the same month on month. However, if you chose a floating interest rate, the EMI amount fluctuates depending on the monthly interest rate.
When you make a larger payment than the EMI before the tenure ends (called part prepayment), your principal amount gets reduced, and your future EMIs are also reduced. Some banks charge a fee for part prepayment.
Most lenders offer car loans for tenures ranging from 1 to 5 years or even up to 7 years. You can choose the repayment tenure as per your financial standing and repayment capacity.
A car loan repayment table is the periodic repayment schedule of your car loan. It gives a breakdown of your repayment details, such as
Yes, the repayment tenure is one of the primary factors based on which the EMI amount is calculated. The shorter the repayment tenure, the higher will be the EMI amount and vice versa.
Yes, most lenders provide car loans for a used car as well. Ensure that you calculate the EMI using a used car EMI calculator to figure out whether it makes sense to buy the used car with a car loan.
It is important to calculate your EMI in advance so that you have a repayment plan in place. When you take a car loan, you promise the bank to repay the borrowed amount in EMIs on a fixed date every month spread across the loan tenure. The car loan EMI calculator helps you to figure out whether your finances are in order and whether you can afford to take the loan.
© 2024 MWYN Tech Private Limited. All rights reserved
Get it on playstore
Get it on appstore