Car loan calculator india By thinkforu.org
Car Loan EMI/Month
Car Total Interest Payable
Car Total Amount
What is EMI (Equated Monthly Installment) ?
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. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment.
The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time.
With each successive payment, you'll pay more towards the principal and less in interest.
Here's the formula to calculate EMI:
EMI Formula
where
E is EMI
P is Principal Loan Amount
r is rate of interest calculated on monthly basis.
(i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
n is loan term / tenure / duration in number of months
For example, if you borrow ₹10,00,000 from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI = ₹10,00,000 * 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)120 - 1) = ₹13,493. i.e., you will have to pay ₹13,493 for 120 months to repay the entire loan amount.
The total amount payable will be ₹13,493 * 120 = ₹16,19,220 that includes ₹6,19,220 as interest toward the loan.
Computing EMI for different combinations of principal loan amount, interest rates and loan term using the above EMI formula by hand or MS Excel is time consuming, complex and error prone or error prone
Our EMI calculator automates this calculation for you in very less time and gives you the result in a split second along with visual charts displaying payment schedule and the break-up of total payment.
Break-Up of the Due Amount is Provided: The car loan EMI calculator helps you calculate the processing fees, interest that is paid, the total amount that must be paid, and the principal amount.
Your Budget can be Planned: Once you know the EMI that must be paid, you can plan your budget accordingly. In case the loan amount that is being availed is large, you may think of opting for a longer tenure. These details can be determined by using the car loan EMI calculator.
Accuracy: For the details that are being provided on the calculator, the results that are displayed are accurate. Manual calculations may not provide accurate results.
Saves Time: The main aim of the Car Loan EMI calculator is to save time. Once the relevant details are entered, the results are displayed almost immediately.
No Limit: There is no limit to the number of times the calculator can be used. Therefore, you use the calculator with different variants. This can help you choose the best lender and the down payment that must be paid.
Compare: As there is no limit to the number of times that the calculator can be used, you can compare the EMIs for different values.
FAQs on Car Loan EMI
Secured loans like home loans and car loans, and unsecured loans like personal loans are repaid through Equated Monthly Installments (EMI).
Car loan EMI is a fixed amount that the borrower pays to the lender/bank each month towards the repayment of the car loan till the end of the loan tenure. EMI consists of the principal loan amount and interest payment.
The online car loan EMI calculator can be found on the bank website or a reliable third-party website. The tool is easy to use. You can use it any number of times for free.
The results are instant and accurate whereas manual EMI calculations are prone to human error and are time consuming. You can also input varying combinations of the loan amount, loan tenure, and interest rates to get revised results.
A Car Loan Repayment table represents the periodic loan repayment schedule of your car loan. It consists of the breakdown of your car loan repayment details such as the principal loan amount, EMI, interest payment, and the outstanding due after each EMI payment.
Anybody who falls under the following
categories can avail a car loan:
Self-employed individuals
Salaried individuals
Partnership firms
HUFs and Trusts
Partnership firms
The different methods by which the car loan EMI can be paid are mentioned below:
Post-dated cheques
ECS mandate
Standing Instructions
Yes, a penalty will be levied if you miss an EMI. Depending on the lender, the penalty charges will vary. Your credit score will also be affected if you miss an EMI.
Yes, the EMI that must be paid will depend on the repayment tenure that you have selected. The EMI will be lower in case the tenure is longer.
Based on whether you have chosen a floating rate or a fixed rate, the car loan EMI will change. In the case of floating rate, the EMI will change based on the rate of interest for the month. However, the EMI will not change if you have opted for a fixed rate.
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