# CAR LOAN EMI CALCULATOR

Regardless of whether you are salaried or self-employed, you can purchase your dream car without the need to be wealthy or save up a significant amount of money, unlike a few decades ago. Simply apply for a new car loan and drive your dream car sooner.

Loan Amount Required

Tenure

Interest Rate

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 loan tenure with the exact monthly EMI amount. Before you select your mode of payment, make sure to know your EMI amount through the Car Loan Interest Calculator.

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

#### Equated Monthly Installments(EMI)

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Principal Amount

₹0

Interest Amount

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Total Amount Payable

## CAR LOAN REPAYMENT DETAILS (YEARLY/MONTHLY)

To ensure comfortable loan repayment, you can pay in monthly instalments, known as Equated Monthly Installments (EMI). Before applying for a car loan, assessing the anticipated monthly instalments is prudent.

## Car Loan EMI Calculation

You have the option of repaying your car loan through monthly instalments (EMI). Before * applying for a car loan*, it is advisable to determine the expected monthly instalment.

Utilize V3Cars' interactive auto loan EMI calculator to estimate your monthly car loan payments. Simply enter the required loan amount, the interest rate, and the desired tenure period to obtain the car loan EMI. The instalment in the EMI calculator is computed on a reducing balance.

Keep in mind that, as per the rules of financing institutions, processing fees or additional charges may be applicable, which are not reflected in the calculated EMI. You might be eligible for a pre-approved car loan depending on your income and credit score. However, the loan amount and maximum tenure are subject to change.

Presently, banks in India offer car loans at an attractive interest rate, accompanied by a low processing fee and a repayment tenure of up to 7 years. Car loans are accessible to various entities, including sole proprietorship firms, partnership firms, companies, consultancy firms, consultants, trusts, and societies.

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

## Frequently Asked Questions

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 based on interest, tenure, down payment, and other benefits.

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.

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

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.

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 vary depending on the credit score.

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 borrowing and repayment.

An online car loan EMI calculator lets you calculate the exact amount of interest payable and monthly EMI based on 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.

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

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 favorable conditions.

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.

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

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

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

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.

A loan tenure is a period in which the borrower decides to repay the loan. It includes both principal amount and interest and the EMIs are segregated concerning the loan tenure.

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.

The 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

A car loan amount is an amount given by a financial institution to any individual, enterprise, or any other entity 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.

No, the car loan EMI is not fixed; it depends on 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, 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.

Yes, the loan tenure affects your monthly payment. The longer the loan, the lower the monthly price. 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.

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

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.

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

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 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, and 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. The 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 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 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 loans but for education loans, home loans, personal loans, and loans on credit cards.

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 the Rate of interest (i.e., r = Rate of interest/12/100. If the 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 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 which 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 Car loan EMI, enter the loan amount, and 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 terms 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:

Remember, the interest rate and your loan tenure are the vital deciding factors for your loan EMI. The higher the interest rate on the loan, the 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 of a Car Loan so that repayments can become comfortable.

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