Use our Car Loan EMI Calculator to estimate your Car Loan EMI and also analyse interest and outstanding principal repayment.

Rs

#

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Months

- Loan Amount
- Rate Of Interest
- Tenure
- EMI:
- Interest Paid:
- Total Amount:

As we move towards the modern lifestyle, the ownership of a car has become more of a necessity than a luxury. And why not, it provides the ease to its users in all possible ways. The buyer, however, might not have the desired amount of disposal monetary resources or might not desire to invest such huge amount, all at once. Car loans come to solace in such scenarios. Various banks and other financial institutions offer car loan to fund your dream vehicle. The borrower, must, in this case, have an analytic approach to select best suitable scheme.

Car loans are to be repaid to the banks in terms of Equated Monthly Installments (EMI) in a pre determined time period. EMI includes a part of the principal amount borrowed and the interest. It must be noted that the interest element is higher during the initial period and gradually decreases towards the end; keeping the amount of each monthly installment a constant. While opting for a car loan the applicant must pre calculate the actual cost to be incurred by them by the end of installment period.

The basic equation to calculate Equated Monthly installment or EMI is:

Where:

- E: the amount that you will have to pay every month i.e. the EMI.
- P: the amount that you want to borrow i.e. principle loan amount.
- r: the rate of interest that is applicable but calculated on a monthly basis instead of the annual rate of interest. It is obtained by using the formula r = annual interest/12/100; e.g. if rate of interest is 12% per annum then r = 12/12/100 = 0.01.
- n: the duration of the loan in terms of months. So if you select a term of 4 years, n will be 48 (i.e. 4*12).

The process of determining the suitable loan amount along with best suitable EMI parameter requires a large number of iterations in the input parameters. This exercise though essential, thus, becomes time-consuming if done manually. ‘Banking on Tips’ provides a user-friendly and accurate EMI Calculator as a simple tool to calculate the EMI that is to be paid every month till towards the loan amount is paid off. The tool calculates the EMI within a fraction of second and thus saves a lot of time.

The applicant needs to input just a few parameters including: the amount to be borrowed, the duration of the loan, the interest rates, and the calculator will do the rest.

- Principal loan amount (in Rupees)
- Loan tenure (in months)
- Rate of interest (monthly in terms of percentage)

- Total payable EMI (in Rupees) to be paid every month.
- Breakup of total payment (in terms of percentage) i.e. total principal and total payable interest in form of visual pie chart which is easy to understand.

- The tool is available free of cost, 24*7 to help you find your current or prospective EMI.
- The tool is user-friendly and hassle free.
- It provides instant and accurate results (Loan EMI Amount).
- The Car Loan EMI calculator helps you in planning your monthly budget so that EMI becomes affordable.
- It helps in assessing the best scheme to fit your affordability.

The following factors affect the Car Loan EMI

- The borrowed principal amount determines the total cost to be incurred by the applicant towards the repayment of the loan. The higher the loan amount, the higher will be the EMI.
- The rate of interest varies from one financial institution to another. The higher the rate of interest, higher will be the EMI. The applicant must study carefully and choose the most suitable among various available schemes.
- Loan Tenure also plays an essential role in freeing the borrower from any financial burdens. It must thus be chosen wisely.
- The lending authority imposes a certain percentage of the loan amount as processing fees. The borrower must always clarify processing fees and any other hidden charges (if any) from the financial institution.

No. ‘Banking on Tips’ provides its car loan EMI calculator absolutely free of cost to guide its readers. There are no hidden terms and conditions to use this calculator and can be freely used any number of times.

- Age: Minimum of 21 years while applying for the loan and not older than 60 years at the end of loan tenure (varies for various financial institutions).
- Minimum 2 years of service in total along with a tenure of minimum 1 year with present employer.
- Income: Every lending authority prescribes a minimum monthly/ annual income for availing car loan.

- Age: Minimum of 21 years while applying for the loan and not older than 65 years at the end of loan tenure (varies for various financial institutions).
- Minimum 2 years of business.
- Income: Every lending authority prescribes a minimum monthly/ annual income for availing car loan.

The basic documents required to avail Car Loan include:

- Age Proof
- ID Proof
- Application Form
- Photograph
- Residence Proof
- Income Proof
- Bank Statement

Note: This list includes the basic documents required for availing Car Loan. Certain addition in these are possible for different lending authorities.