Car Loan EMI Calculator
The world’s 4th largest market for cars at present, India has seen a rise in the sales of vehicles. The development has been consistent at 9.5% year-on-year. So it is no big surprise that the interest for a solid and straightforward to utilize Car Loan EMI Calculator has likewise soared. While the Internet is overflowed with car loan calculators, not all are exact. Dialabank presents to you the best Car Loan EMI Calculator which will assist you with making an educated choice on how much financing you have to buy your fantasy car, how much your EMIs are probably going to be, and different subtleties.
By what means can a Car Loan EMI calculator help you?
Notwithstanding the type of car, you are going to buy. A car loan is a generous sum that you have to reimburse over the tenor alongside the car loan interest rate. This is the place a car Loan EMI calculator proves to be useful. Here are some undeniable advantages of utilizing a:
- Recoveries your significant time: The basic role of a Car Loan EMI Calculator in India is to spare your time. Dialabank utilizes a normalized equation for ascertaining your EMI queries. It delivers an outcome when you put in fundamental information.
- Exact Without Fail: Unlike manual counts, a Car Loan EMI Calculator never commits an error.
- Encourages you to plan your budget: Once you have thought of the amount you have to reimburse every month as EMIs, you will have the option to design your future financing choices better. For example, if you want to purchase a costly car, you need a greater loan sum. To reimburse that, you need a more drawn-out tenor. Every one of these components is dictated by a car loan calculator in India.
- Stalls the sum you have to pay: A Car Loan EMI Calculator in India encourages you to stall the all-out payable sum under different headings, including loan sum, intrigue pertinent, and preparing charges, among others.
How is the EMI determined?
It is anything but difficult to calculate the EMI for your car loan. You will get EMI when you enter the necessary loan sum and the financing cost. A portion in the EMI calculator is calculated on decreasing equalization. Documents required for car loans and other eligibility differ according to lenders. According to the principles of financing establishments, processing expense or potential charges might be material that has not appeared in the EMI we calculate.
A standardized formula is used by the Car Loan EMI Calculator of Dialabank:
E= P. R. (1+R)^n/[(1+R)^n -1]
The variables of the formula are as follows –
|P||Determines the principal amount|
|R||The rate of interest payable every month|
|N||The total tenure in months|
|E||Total EMI payable each month|
Car Loan Fees and Charges for Top 3 Banks
|Name of the bank||HDFC Bank||Axis Bank|
|Processing fee||1% of the loan amount. The maximum and minimum amounts that can be charged are Rs.5,000 and Rs.10,000, respectively.||Rs.3,500 to Rs.5,500|
|Documentation||Rs.700||Rs.500 per instance|
|Foreclosure charges||3% – 6% depending on the amount of time completed*||5% of the principal outstanding|
|Loan cancellation||As mentioned by the bank||Rs.2,500 per instance|
|Penal interest||2% per month||2% per month|
Car Loan EMI Calculator Offered by Major Banks in India
|Axis Bank||HDFC||State Bank Of India||Private|
|Kotak Mahindra||Canara Bank||Central Bank of India||PNB|
|Union Bank of India||IOB||Federal Bank||Indian Bank|
|South Indian Bank||Bank of Baroda||Corporation Bank||IndusInd Bank|
Fixed-Rate VS Floating Rate of Interest
Car Loans are offered at fixed and floating rates of interest. The fixed-rate is unchanged for the entire loan tenure, but the floating rate can change from time to time. Several factors that affect the fixed and floating rates are applicable taxes, liquidity, inflation, and many more.
Fixed-Rate EMI Calculation
Under the fixed rate EMI Calculation, the EMI paid for the car loan in the entire tenure remains unchanged.
For example, there is a car loan equal to Rs.5 lakh at 10% p.a. interest for a 3-year tenure. As per this situation, the interest to be paid will be Rs.16,134 per month for the entire tenure.
Floating Rate EMI Calculation
Under the fixed rate EMI Calculation, the EMI paid for the car loan in the entire tenure keeps changing from time to time. The changes are dependent on the market lending rate.
For example, there is a car loan equal to Rs.5 lakh at 10% p.a. interest for a 3-year tenure. Since the interest rate for a year is 10%, the EMI payable is Rs.16,134 in the example above. You have an unpaid balance of Rs.3,36,409 at the end of the year. The interest rate on the car loan at the time was changed to 8%. As a result, the EMI payable for the remainder of the term would be Rs.15,215.
An amortization schedule is a complete table of periodic loan payments that includes the principal and interest amounts for each payment until repayment of the loan. In simple terms, it lays out a plan for breaking down a credit option, such as a car loan, into a series of fixed payments. While each monthly payment remains constant, the price is made up of components that change over time. As a result, it aids banks, and financial institutions maintain a record of what they owe and when they owe it and forecasting the outstanding balance or interest at any point in the repayment schedule.
For a car loan worth Rs. 8 Lakh for 5 years tenure at a 9.5% interest rate.
|Principal (Rs.)||Interest (Rs.)||Principal + Interest (Rs.)||Balance to be paid (Rs.)|
Car Loan Interest Rates 2020
|Processing Fee||Min 0.24% of the loan amount|
|Loan Tenure||1 year to 7 years|
|Prepayment charges||NIL or 1% if any|
|Loan to Value||Up to 100% of ex-showroom price|
Advantages of Using An EMI Calculator for Car Loan
- Break-up of the Due Amount: The car loan EMI calculator assists you in calculating the processing fees, interest paid, the total amount due, and principal amount.
- Planning of Budget: Using an EMI Calculator, you calculate your EMI and plan your budget accordingly. If the loan amount is huge, you may want to consider a longer repayment period. We can determine these particulars by using the Car Loan EMI Calculator.
- Accuracy: The results are accurately displayed for the details provided on the calculator. The manual calculation may yield inaccurate results.
- Time Saver: The primary goal of the Car Loan EMI calculator is to save your time. Once you’ve entered the relevant information, immediately the results are displayed.
- >No Time Limit: There is no time limit on how many times the calculator can be used. As a result, you can use the calculator with numerous aspects. This can assist you in determining the best lender and the required down payment.
- Compare: You can compare the EMIs for different values several times as there is no limit on the use of the EMI Calculator.
Frequently Asked Questions (FAQs)
✅ How time-taking is the Car Loan EMI Calculator?
Ans. Only a few minutes if you have the required values of the different components.
✅ Can I avail a car loan to buy a used car?
Ans. Yes, almost all major financial lenders give car loans for used cars which have the necessary documentation.
✅ What is the usual tenure of a car loan in India?
Ans. In India, the typical tenure for a car loan is 1 to 5 years, although they are up to 7 years. The lower the tenure, the higher the EMIs to be paid.
✅ Do I need a co-guarantor for a car loan?
Ans. Not mandatory if you meet all the required eligibility criteria.
✅ Can my car loan application be rejected?
Ans. Occasionally, your car loan application gets rejected for not satisfying the eligibility criteria or lack of documentation. The CIBIL score must be above 750.
✅ How might I make my payments of EMI installments?
Ans. After the vehicle loan is endorsed, a client should consent to an arrangement including a NACH (National Automated Clearing House) structure, a framework actualized by National Payments Corporation of India (NPCI), propelled with an objective to unite numerous ECS (Electronic Clearing Service) frameworks in the nation permitting paperless debit exchanges between banks.
Getting into such an understanding would mean that the client has conceded consent for auto-charging the EMI sum from his financial balance in the indicated bank account as referenced in the understanding until the last EMI of the advance sum.
Disclaimer: According to the data entered by you, the computation is performed by EMI Calculator, and the installment amounts do exclude some other expenses charged by the NBFC/banks like processing fees, documentation charges, and so forth. The sum is in Indian Rupee adjusted after rounding off. Depending on the type and utilization of the car, regional lender necessities, and the quality of your credit, accurate down payment, and eventual monthly installments may change. Actual EMIs can be discovered from the bank.