Are you interested in getting an EMI quote for financing your car? Rather than postponing it further, avail attractive loan options for owning an independent car for yourself. Get a quick estimate of your car loan’s monthly installments by taking help of car loan EMI calculator. This calculator will provide you an accurate analysis of your monthly outflows towards your car loan EMI. Now you can plan your budget by taking into consideration the car loan EMI calculator which gives you an estimate subject to the existing interest rate and the loan amount you consider to apply for.
Car Loan EMI Formula-
Car loan Equated Monthly Instalment(EMI) is generally a fixed sum that the car loan borrowers need to pay to your bank or lender every month as repayment of a loan obtained, until your loan is fully repaid. It is necessarily composed of two parts- the principal amount and the interest on the principal amount, divided across each month of the loan period. The EMI is always paid on the basis of fixed amount to the bank or lender each month.This could either be done through post-dated cheques issued in kind interest to the lender or by giving auto debit instructions to your bank for the same.
The method of calculating EMI is as follows:
E= P*R*(1+r)n /((1+r)n -1)
E = EMI payable on your car loan amount
P = Car loan Principal Amount
r = the interest rate value calculated on a monthly basis
n = the loan tenure (in months)
Car Loan EMI Determinants-
Principal amount: The amount of loan that a borrower is looking for is the main criteria due to which the car loan EMI value tends to vary immensely. The more the principal amount, the higher will be the EMI.
Tenure: The time period selected for car loan amortization is another major criteria that can affect your monthly car loan EMI amount. If you select a longer tenure, your equated monthly instalment would be minimized. However, it must be noted that longer the loan tenure, the amount which is to be repaid as interest would increase. Thus, a balanced scheme must be decided as per one’s necessities.
Rate of Interest: The EMIs are calculated subject to the interest rate, this factor needs to be understood fully and selected accordingly. Banks and other financial institutions provide definite interest rates to various individuals. However, car loan EMI Calculator should be used to calculate the different monthly instalments of your loan depending on your chosen interest rate. As the interest rate rises, there would be a rise in EMI too. Thus, it is very crucial to select the most suitable interest rate among existing car loan eligibility alternatives which would be more beneficial for you in the longer run.
Foreclosure charges: Foreclosure charges or prepayment charges can also bring variations that exist in your car loan EMI.
Car Loan EMI Calculator-
Do you wonder how much EMI you would pay on your car loan? Use Car loan EMI calculator which help you to plan your purchase. Just enter the details about your finances and your desired car you are planning to buy, and rest will be done accordingly.
Car Loan EMI Calculator is a user-friendly interface which will help you to plan apply for loan amount and the tenure to accommodate your preferences. All you need is to simply enter the following details:
- Estimated loan amount
- Choose the interest rate of your car loan
- Duration of the loan
Depending on the above information, the calculator will directly give you the details on your monthly instalment that you are required to pay for the car loan and it helps you to plan your budget suitably.
For example: Anita has applied for a 5-year car loan of ₹ 10 lakhs with an interest rate being 9.65% per annum depending on his/her eligibility. The expected EMI will be ₹ 21,075, while interest outgo and overall repayments are expected to be ₹ 2,64,514 and ₹ 12,64,514.
Advantages of Car Loan EMI Calculator-
- EMI Calculator provides you an option to calculate your monthly instalments that would have to be repaid after the disbursal of car loan. It would help evaluating which scheme matches your repayment capacity.
- The EMI Calculator also gives you a comprehensive picture of your loan repayment. By taking help from iconographics like pie chart, table, line charts, the EMI calculator depicts the proportion of the amount of interest rate, principal amount and the processing fee, if any, of the total repayment value.
- The calculator also permits you to view several aspects of the repayment value, individually and helps you in ascertaining your car loan eligibility. It shows you the composition of the total payable amount into the loan amount, total interest amount payable and the processing fee.