Car Loan EMI Calculator Online
A Car Loan EMI Calculator is a useful tool that helps you calculate the EMI you must pay to repay a car loan. It allows you to adjust loan amount, interest rate, and loan tenure to plan and budget for car loan repayments..
What is Car Loan EMI?
Car Loan EMI (Equated Monthly Installment) is a regular payment made by the borrower to the lender to repay the car loan. The EMI comprises the principal amount borrowed and the interest charged. The EMI amount is fixed and remains the same throughout the loan tenure, allowing borrowers to plan their finances better and ensure timely repayments.
What is Car Loan EMI Calculator?
Car Loan EMI Calculator is a free online tool that calculates the monthly EMI for a car loan. It helps borrowers determine how much they need to repay each month based on the loan amount, interest rate, and loan tenure, enabling them to plan their finances better.
How Can Car Loan EMI Calculator Help You?
The following are the helps you.
Planning and budgeting: Helps you plan your finances and budget for car loan repayments.
Comparison: This enables you to compare car loan offers from various lenders.
Decision-making: Helps you decide on the best car loan offer for your needs.
Formula to Calculate Car Loan EMI Calculator:
The formula for calculating the EMI for a car loan using a car loan EMI calculator is as follows:
EMI = [P x R x (1+R) ^ N] / [(1+ R) ^ N – 1]
EMI: Equated Monthly Payment
P: Principal amount of the loan (i.e., the amount you want to borrow to purchase the car)
R: Rate of interest per month (calculated as Annual Interest Rate / 12)
N: Number of monthly instalments (i.e., loan tenure in months)
The formula considers the principal amount borrowed and the interest charged on it. It calculates the fixed monthly EMI the borrower will have to pay for the car loan repayment.
How to use Car Loan EMI Calculator?
To use a car loan EMI calculator, follow these simple steps:
- Enter the loan amount you need to borrow to purchase the car.
- Enter the interest rate per annum charged by the lender.
- Enter the loan tenure or duration of repayment in months.
- Click on the 'Calculate' button.
The calculator will display the Equated Monthly Installment (EMI) amount you must pay monthly towards repayment of the car loan. It will help you design your finances better and make informed decisions about car loan offers.
Modes of Paying Car Loan EMI:
Many options for paying your Car Loan EMI are available at banks:
You can select the one that suits you perfectly:
Standing Instructions:
If you have a Salary Account, Savings Account or Current Account, you can give one-time standing instructions to debit from your account for the monthly EMI amount directly.
Electronic Clearing Service(ECS) or National Automated Clearing House (NACH):
NACH or ECS service can avail by submitting a mandate to the Bank to directly debit your account with the exact Equated Monthly Instalment amount on the date set up for loan repayment.
Post-Dated Cheques:
You can submit post-dated cheques to the Bank for the entire loan tenure with the exact monthly Equated Monthly Instalment amount. Before you select your payment mode, know your Equated Monthly Instalment amount through the Car Loan Interest Calculator.
Advantages of Car Loan EMI Calculator:
The advantages of using a Car Loan EMI Calculator include:
Convenience:
It is an online tool that can access from anywhere at any time.
Accuracy:
It provides accurate results based on the loan amount, interest rate, and loan tenure entered.
Time-saving:
It saves time and attempts compared to manual calculations.
Better planning:
it helps borrowers plan their finances and make informed decisions about car loan offers.
Comparison:
It allows borrowers to compare car loan offers from various lenders to select the best one.
Conclusion:
In conclusion, a Car Loan EMI Calculator is an essential online tool for anyone purchasing a car with a loan. It helps to plan and budget for loan repayments, compare different loan offers, and make informed decisions. It saves time and effort, is convenient, and provides accurate results, making it an indispensable tool for borrowers.
FAQ'S
How is car loan EMI calculated manually?
As an example, if you borrow Rs10 Lakh from a financial institution (P), with a rate of interest 10 per cent(R), for a total tenure (N) of 7 years, using the formula, your EMI comes to Rs16,602. The sum payable at the last tenure is Rs16602 x 84 or Rs1394568.
What is the maximum tenure of a car loan EMI?p>
Car loans are for a maximum period of 84 months or seven years. Therefore, repayment must happen within this short span—some like the shorter term.
How to calculate car loan amortization?
Though calculators, spreadsheets, and tables are useful, a simple math formula can help approximate your loan's amortization. Multiply your loan's interest rate by your outstanding loan balance.
What is the 40% EMI rule?
In short, if your income is 1 lakh monthly, your total EMI or equated monthly instalment, which is the method most people opt for repaying loans or any debts, should be at most Rs. 40,000.p>