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Car Loan EMI Calculator

You can buy your dream car regardless of whether you are salaried or self-employed. You don't need to be wealthy or save up a lot of money, unlike a few decades ago. You can simply apply for a new car loan and drive your dream car sooner.

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    Loan EMI

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    Total Interest Payable

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    Total Payment
    (Principal + Interest)

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    Car Loan Repayment Details (Yearly/Monthly)

    To make the loan repayment comfortable, you have the option to pay in monthly installments (Equated Monthly Installment). Before you apply for a car loan, it is prudent to assess how much the monthly installments would be.

    Car Loan EMI Calculation

    Want to print OR share a custom link to your EMI calculation (with all your numbers pre-filled)?

    You have the option of paying your car loan back in monthly installments (EMI). Before you apply for a loan, it is a good idea to figure out how much your monthly installment would be.

    Use V3Cars' interactive auto loan EMI calculator to estimate your monthly car loan payments. You will get car loan EMI as soon as you enter the required loan amount, the interest rate and the desired tenure period. Installment in EMI calculator is calculated on reducing balance..

    As per the rules of financing institutions, processing fee or possible charges may be applicable which are not shown in the EMI we calculate. You may be able to get a car loan that is pre-approved, depending on your income and credit score. The loan amount and maximum loan tenure may be subject to change.

    Today, banks in India offer car loans at an attractive rate of interest, with a low processing fee and a repayment tenure of up to 7 years. The car loan is available to sole proprietorship firms, partnership firms, companies, consultancy firms, consultants, trusts and societies.

    Note: The calculator's rate is only indicative. The actual rate may vary.

    What is an EMI?

    EMI stands for the Equated Monthly Installment that consists of the principal portion of the loan amount and the interest. It consists of the interest amount on loan as well as part of the principal to be repaid. Therefore, EMI = principal amount + interest paid on the Car Loan. The sum of principal amount and the interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid.

    The EMI, usually, remains fixed for the opted tenure of your loan, and it is to be repaid over the tenure on a monthly basis. The EMI consists of two parts: the interest and the principal. The interest component is higher during the first few months and gradually decreases with each payment. The exact percentage allocated towards the principal depends on the interest rate.

    Even though the monthly EMI payment doesn't change, the proportion of the interest and principal components will change over time. With each successive payment, you'll pay less in interest and more towards the principal.

    Mathematically, EMI is calculated as mentioned below:
    E = P x R x (1+R)^N / [(1+R)^N-1]
    where
    E is EMI
    p refers to the Principal amount of the loan
    R is Rate of interest (i.e., r = Rate of interest/12/100. If rate of interest is 7% per annum, then r = 7/12/100=0.00583)
    N refers to the Number of monthly installments.

    For example, if you borrow ₹5,00,000 from the bank at 7% annual interest for a period of 5 years (i.e., 60 months), then

    EMI = ₹5,00,000 * 0.00583 * (1 + 0.00583)60 / ((1 + 0.00583)60 - 1) = ₹9,901. i.e., you will have to pay ₹9,901 for 60 months to repay the entire loan amount. The total amount payable will be ₹9,901 * 60 = ₹5,94,060 that includes ₹94,060 as interest toward the loan.

    V3Cars’ Car EMI Loan calculator is an easy to use online tool that enables you to understand how much will be your EMI outgo. To calculate your EMI, enter the loan amount, interest rate, and select the tenure of your loan (in years or months) by using the slider.

    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. Our Car EMI calculator automatically calculates your monthly payments, and provides a payment schedule and breakdown of the total payment.

    The EMI calculator has five benefits:

    • It is Easy to access
    • Provides quick results
    • Saves time and energy on manual calculations
    • Helps you determine how much money will be spent on loan repayments
    • Make loan planning easier

    Remember, the interest rate and your loan tenure are the vital deciding factors for your loan EMI. Higher the interest rate on the loan, higher will be your EMI and vice-versa. Similarly, opting for a longer tenure reduces your EMI and vice versa. So, consider opting for longer loan tenure when you avail a Car Loan so that repayments can become comfortable.

    Do note that during the initial months of the Car Loan tenure, you pay more towards interest, and gradually, as you repay the loan, a higher portion is adjusted towards the principal component. This is because; EMIs are computed on a reducing balance method, which works in your favor as a borrower.

    How to Use Car Loan Monthly EMI Calculator?

    V3Cars' Auto EMI Loan calculator can help you calculate your EMI for the chosen interest rate and tenure. The results are instant and displayed in colorful charts. Our EMI Calculator is easy to use, intuitive to understand and is quick to perform. Simply key in the amount(rupees), rate of interest(percentage) , tenure(months or years) for which the car loan is sought and EMI in advance OR EMI in arrears, the Car Loan Monthly EMI Calculator will automatically reflect the approximate EMI applicable for the loan tenure.

    Use the slider to adjust the values in the EMI calculator form, or type the values directly into the relevant boxes. EMI calculator will automatically recalculate your monthly payment (EMI) amount when the values are changed using the slider or 'tab' key.

    A pie chart depicting the break-up of total payment (i.e., total principal vs. total interest payable) is also displayed. It displays the percentage of total interest versus principal amount in the sum total of all payments made against the loan. The payment schedule table showing payments made every month / year for the entire loan duration is displayed along with a chart showing interest and principal components paid each year. A portion of each payment is for the interest amount while the remaining amount is applied towards the principal balance.

    Also, remember to refer to the payment schedule which shows a break-up of the interest and principal repaid each year during the loan tenure. The amortization schedule also shows the intermediate outstanding balance for each year which will be carried over to the next year.

    To apply for a car loan or for further information, simply click on the “Get Bank Quotation” button and key in your details.

    Note: This Loan EMI Calculator is a handy tool that can be used to calculate the monthly amount payable to the lender (bank) not just for car loan but for education loan, home loan, personal loan and loan on credit card.

    What are the modes of paying car loan EMI?

    Multiple options for paying your Car Loan EMI are available at banks: you can choose the one that suits you best:

    • Standing Instructions: If you have a Savings Account, Salary Account or Current Account, you can provide one-time standing instructions to directly debit your account for the specific EMI amount every month. By using internet banking, you can easily automate recurring payments.
    • National Automated Clearing House (NACH) or Electronic Clearing Service(ECS): NACH or ECS service can be availed by submitting a mandate to the bank to automatically debit your account with the exact EMI amount on the date set up for repayment of your loan.
    • Post Dated Cheques: A traditional way to repay your loan. You can submit post-dated cheques to the Bank for the entire tenure of the loan with the exact monthly EMI amount. Before you select your mode of payment, do make sure to know your EMI amount through the Car Loan Interest Calculator.
    What are the advantages of using car loan EMI calculator?

    V3Cars Car Loan Interest Rate Calculator is a straightforward and hassle-free online tool to assist you to ascertain the principal and interest amount of your Car Loan. Calculator would require you to enter the following data:

    • Loan Amount Required
    • Tenure
    • Interest Rate

    you will have the EMI amount before you proceed with the formalities of the loan. The Car Loan Calculator gives you the exact amount that is payable by you every month.

    Does the length of a car loan affect the monthly payment?

    Yes, the loan tenure affects your monthly payment. The longer the loan, the lower the monthly payment. The shorter the loan, the higher the monthly payment. Use our Car Loan EMI Calculator to determine the amount of the various EMI amounts and tenures.

    Is the car loan EMI fixed or variable?

    No, the car loan EMI is not fixed; it depends whether the interest rate chosen by you is a set rate or a floating rate. If the interest rate is a fixed one, then your monthly EMI is also fixed. However, if you opt for a floating interest rate, then your EMI amounts fluctuate depending on the monthly interest rate.

    Additionally, if you repay the principal amount before the tenure, the EMI amount will decrease. A Car Loan EMI Calculator assists you with the exact EMI amounts as per the chosen interest rate.

    What is Car Loan Amount?

    A car loan amount is an amount given by a financial institution to any individual, enterprise or any other identity to buy a car. The authority who lends the money is called the lender whereas the person/entity who borrows the money is called the borrower.

    What is Down Payment & What amount I need to fill?

    Down payment is the upfront amount the buyer has to pay to the seller before purchasing a vehicle. Generally, it is the difference between the on road price of the vehicle and the loan amount approved by the bank or any financial institution.

    Note: Check your car’s fuel cost with Fuel Cost Calculator in India

    What is the Interest Rate?

    Interest rate refers to a fee that a bank or any financial institution charges over the principal amount of the loan. It generally varies from bank to bank, loan tenure and other factors.

    What is the Loan Tenure?

    A loan tenure is a period of time that the borrower decides to repay the loan. It includes both principal amount and interest and the EMIs are segregated with respect to the loan tenure.

    Does the loan tenure affect my EMI for a car loan?

    Yes, the loan tenure affects the EMI for a car loan. Generally, the longer the loan tenure is, the smaller the monthly EMIs will be charged by the bank or any financial institution.

    What is the smartest way to finance a car?

    To start with, one should choose the car that fits right in their budget and doesn’t affect their finances. The next step is to compare the car loan plans of different banks and financial institutions on the basis of interest, tenure, down payment and other benefits.

    What is considered a high car payment?

    It depends on how comfortable you are to spend on monthly EMI for your new car. Generally, the car loan amount is considered high if the car payment is more than 20% of your monthly income.

    What if I skip my car loan EMI?

    Failing to pay the monthly EMI on a regular basis can bring multiple consequences like affecting CIBIL score, credit worthiness, penalties and accumulation of interest.

    Is it smart to do a 72 month car loan?

    The longer duration of a car loan accumulates higher interest over the principal amount. Hence, if you can manage a loan of a shorter duration than 72 months, it will benefit you more with lower interest. Ideally, the car loan tenure should be lower than 60 months.

    What are the best interest rate for a car loan?

    Generally, an interest rate between 6.40% to 9% is ideal in the market. One should opt for the lowest interest rate along with all other favourable conditions.

    What are the documents required to apply for a car loan?

    To apply for a car loan, one should have documents like Aadhar card or Voter ID for identity and address proof, salary slip with form 16 as income proof, and bank statement of the last 6 months.

    What are the benefits of using an online Car Loan EMI Calculator?

    An online car loan EMI calculator lets you calculate the exact amount of interest payable and monthly EMI on the basis of tenure, interest rate and down payment, from the comfort of your home. You can set the duration of the loan as per your finances and make a sound decision.

    What is a Car Loan Repayment table?

    A car loan repayment table or car loan amortization table is a structured account of data like loan amount, interest rate, loan tenure and other factors that directly or indirectly affect the borrowing and repayment.

    Who can avail a Car Loan?

    Anyone with a valid identity and address proof and a suitable credit history can apply for a car loan. The interest rate and principal amount varies depending on the credit score.

    What are the different ways by which the car loan EMI can be paid?

    There are different repayment options for car loans and a few of them are normal EMI, step-down EMI, step-up EMI, special tie-up EMI, and balloon EMI.

    Is the car loan EMI fixed or can it change in future?

    It depends on the type of interest you have chosen. In case of the fixed interest rate, the interest and loan EMI remains fixed whereas in the case of floating interest rate, the interest and loan EMI varies depending on the market trends.

    What is the difference between EMI in Arrears or EMI in Advance?

    In the case of EMI in arrears, the borrower pays the loan EMI at the end of every month and the loan principal is distributed evenly throughout the loan tenure. EMI in advance, on the other hand, consists of an advance payment that the borrower pays to the bank, hence making the loan EMI relatively smaller.