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Car Loan EMI Calculator

Car Loan EMI Calculator

Car loan EMI CalculatorThe world’s 4th largest market for cars at present, India has seen a rise in the sales of cars. The development has been consistent at 9.5% year-on-year. It is no big surprise that the interest for a solid and simple 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 which you have to reimburse over the tenor alongside the car loan interest rate . This is the place a car EMI calculator proves to be useful. Here are some undeniable advantages of utilizing a :

  • Recoveries your significant time: The basic role of an EMI calculator for car loans 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, an online 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. On the off chance that you are wanting 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 loan 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 standardised 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 amount 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 ICICI
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 tenure of the loan but the floating rate can change from time to time. The several factors that affect the fixed and floating rates are the applicable taxes, liquidity, and 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.

Amortization schedule

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 payment is made up of components that change over time. It aids banks and financial institutions in maintaining a record of what they owe and when they owe it, as well as 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.)
1 10468 6333 16801 789532
2 10551 6250 16801 778981
3 10635 6167 16801 768346
4 10719 6083 16801 757628
5 10804 5998 16801 746824
6 10889 5912 16801 735935
7 10975 5826 16801 724959
8 11062 5739 16801 713897
9 11150 5652 16801 702747
10 11238 5563 16801 691509
11 11327 5474 16801 680182
12 11417 5385 16801 668766

Car Loan Interest Rates 2020

Interest Rate 9.50%
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
  • The maximum loan amount depends upon either the on-road price or ex-showroom price of the car.
  • CIBIL score should be maintained as per guidelines.
  • Popular Banks offering car loan are HDFC Bank, ICICI Bank, Axis Bank, SBI and PNB.
  • Car Loan Interest Rates are a key element of the loan amount, your occupation, and the company you are working with. The higher the loan amount, the lesser will be the interest rate. Eligibility criteria for car loan differ from institution to institutions.

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, typical tenure for a car loan is 1 to 5 years, although 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 instalments?

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 of the EMI sum from his financial balance in the indicated bank account as referenced in the understanding till the last EMI of the advance sum.

Disclaimer: According to the data entered by you the computation is performed by EMI Calculator and the instalment amounts do exclude some other expenses charged by the NBFC/banks like processing fee, 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 instalments may change. Actual EMIs can be discovered from the bank.

News about Car loan EMI Calculator

  • Mercedes-Benz has unveiled the AMG GLE 53 4MATIC+ Coupe at a price of Rs.1.2 crore.

Mercedes-Benz unveiled the AMG GLE 53 4MATIC+ Coupe in India on September 23, 2020, with an ex-showroom price of Rs.1.2 crore. The car was first revealed in February 2020 at the 2020 Auto Show. The AMG 43 Coupe will be replaced by the latest coupe, according to Mercedes-Benz. At the moment, the company has seven SUV Coupes and SUVs. Mercedes-Benz had previously stated that it would introduce ten new models to India this year. However, due to the coronavirus outbreak and subsequent lockdown, there has been a delay.

  • The Volkswagen ID4’s production specifications have been announced, with the vehicle set to debut in India in 2022.

The Volkswagen ID 4’s output level requirements have been announced by the German automaker. The ID branded SUV from Volkswagen’s production line is now in near-production form. The car will come with an RWD powertrain at first, but will later be available in an AWD version as well. The ID 4’s engine produces 204 horsepower and 310 Nm of peak torque, and it can accelerate from zero to 100 kilometres per hour in 8.5 seconds. By 2022, the car is expected to be available in India.