What is Car Loan EMI Calculator?
A car loan is a credit instrument offered by banks and other lenders that helps you finance the purchase of a car with minimal initial payment. The borrower can repay the loan in EMIs over a period of time and at an agreed interest rate. It is necessary to calculate the car loan EMI before applying for a loan. A car loan calculator helps you to determine the EMI and interest payable on the borrowed car loan.
A car loan EMI calculator is a simple tool that can help you make an informed decision while looking for a car loan.
How Car Loan EMI Calculator Works?
An auto loan calculator saves you from doing the manual calculations of estimating your car loan EMI. It requires only a few inputs to calculate your monthly installment and payable interest amount.
Car Loan Amount: The amount of loan that you want to borrow from the lender. This depends on the market price of the car.
Car Loan Tenure: The repayment period you agreed with the lender to repay the borrowed amount.
Interest Rate: The applicable rate of interest charged by the lender on the car loan.
Based on these inputs, the car loan interest rate calculator will calculate and show you the EMI, total payable interest, and total repayment amount. You can also easily change the inputs and get results accordingly in real-time.
Car Loan EMI Formula
The formula used to calculate car loan EMI is P x R x (1+R)^n/{(1 + R) ^ (n - 1)}
Here,
P: Principal loan amount borrowed from the lender
R: Applicable monthly car loan interest rate agreed with the lender
n: Total loan tenure in months
Let us understand how this formula works with an example.
Suppose you have borrowed a car loan of Rs 4 lakhs for a period of 6 years from a financial institution. The agreed interest rate is 12 percent per annum. Now, the value that will be used in the formula are as follows:
P = 4,00,000
n = 6 x 12 = 72
R = 12/(12 x 100) = 0.01
Putting these values in the aforementioned formula, we get
EMI = 400000 x 0.01 x (1+0.01)^72/{(1+0.01)^72-1}
EMI = Rs 5,254
Total Interest = Rs 3,56,529
Total Payable Amount = Rs 5,56,529
As you can see, the formula requires usages of a number of variables and involves complex calculations. A car loan interest calculator does all the calculations and shows you all the EMI details instantly. This saves your time and effort and gives you an accurate picture of how your repayments will be.
How to Use Car Loan EMI Calculator?
A car EMI calculator has a very simple interface. You just need to follow the below-mentioned steps to calculate the car loan EMI instantly.
- Open an online car loan EMI calculator. There are plenty of tools available on the internet. Choose INDmoney’s car loan calculator to calculate your EMI easily without any effort.
- Enter the loan amount you wish to borrow for the purchase of your preferred car.
- Choose the amortization period and the expected interest rate for the car loan.
- The car loan EMI calculator will show you the EMI, payable interest, and total payable amount instantly.
- You can also compare car loan offers from different lenders by changing the interest rate and repayment time period in the INDmoney’s car loan calculator.
Why Should You Use INDmoney’s Car Loan Calculator?
- INDmoney’s car loan calculator helps you to determine your car loan EMI easily so that you can plan your finances better. It helps you get a fair idea of the loan amortization so that you can choose the right EMI plan for the purchase of your car.
- INDmoney’s car loan EMI calculator is an online tool that you can access from anywhere with a working internet connection. This enables you to calculate the car loan EMI on the go without the need for doing any manual calculation.
- Different financiers offer different interest rates on car loans. You can use INDmoney’s online car loan calculator to compare all such offers and choose the best that fits right for your budget.
- You can estimate EMIs based on different loan tenures. This helps you to gauge your repayment ability and select a comfortable amortization plan.
Get a Car Loan to Buy Your Dream Car
India is now the fourth-largest 4-wheelers market in the world. The number shows how the demand for cars has been increasing over the years. Many people wish to have a personal car but the price is something that creates an obstacle in the purchase. A car loan helps out by allowing you to pay a minimal down payment and get your dream car easily. You can pay the remaining amount in monthly installments over an agreed rate of interest.
Easy Finance
Now, you do not have to go through complicated paperwork and bank formalities to get finance for your dream car. There are a number of lenders who can readily approve your car loan application with minimal documentation.
No Collateral Required
You do not need to pledge any mortgage with the lender to get a car loan. The car itself is used as security until the loan repayment is done.
Easy Loan Repayment
You can avail the auto-debit facility of EMI on your car loan. All you need to do is approve a bank mandate and the EMIs will be automatically deducted from your bank account every month.
Flexible Repayment Period
A car loan allows you to choose a repayment time period based on your financial ability.
Attractive Interest Rates
With a number of lenders available in the market, you can get good offers on a car loan. Use the car loan EMI calculator to choose the best offer for you.
Frequently Asked Questions
What are the documents required to get a car loan?
You need to fill in the car loan application form and furnish the following documents as asked by the lender:
- KYC Proof
- Income Proof
- Photograph (if asked)
What are the factors that affect my car loan interest?
Your car loan interest rate depends on your credit score and your association with the lender. The total interest amount also depends on the time period of loan repayment.
Can I get a loan to purchase a second hand car?
Yes, you can avail a car loan to purchase a used car as well.
Can I choose the floating interest rate option on a car loan?
Yes, you can choose the floating interest rate option for your car loan. Your EMI will vary with the change in the car loan interest rate offered by the lender.