If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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    Car Loan Amortisation

    Banks, Non-Banking Financial Companies (NBFCs), and other lending institutions in India offer new and used car loans up to 85-100% of the on-road/ex-showroom price of the car at competitive interest rates. With the hike in prices of most makes and models of cars this month, more customers are seeking auto finance to afford a car of their choice.

    A car loan is a secured loan wherein the car acts as the collateral. Borrowers repay car loans to the banks in Equated Monthly Installments (EMIs) over a specified period of time (loan tenure). Banks offer new and used car loans for a loan tenure ranging from 1 to 7 years. Visit a third-party website to compare various car loan offers and choose one with the lowest interest rate and flexible repayment options. Keep in mind, making a higher down payment can lower the cost of your car loan.

    What is Car Loan Amortisation?

    The periodic repayment schedule of your car loan is represented in the form of an amortisation table called the car loan amortisation. The table consists of EMI payments, principal loan amount, car loan interest rate, interest payments, the outstanding dues after each EMI payment, loan tenure, down payment, etc. With the amortisation table, you can find out when the loan will be paid off and how much your car loan will cost you each month.

    Why is it important to use Car Loan EMI Calculator?

    Calculating your car loan EMI can help you find out how much your car loan will cost you monthly. Car loan EMI is calculated based on the below formula:

    E = P x r x (1+r)^n/((1+r)^n – 1), where E is the Equated Monthly Installment, P is the principal loan amount, r is the rate of interest, and n is the loan tenure.

    The manual calculation of car loan EMI can be prone to human errors. It is also time-consuming. Therefore, it is advisable to use the free online car loan EMI calculator that is available on the bank website or a reliable third-party website. The tool is easy and simple to use. All you have to do is enter the loan amount, loan tenure, interest rate and processing fee into the tool. Click on the ‘Calculate’ button. You will get instant and accurate results of your car loan EMI calculation in the form an amortisation table.

    The online car loan EMI calculator can save you time and effort when there is a change in your interest rate or you decide to opt for loan prepayment, then you can get a revised loan repayment schedule. You can input varying combinations of car loan interest rates, loan tenures, and principal loan amount into the tool and get revised amortisation schedules. In the case of loan prepayment, depending on the EMI calculation results, you can either keep the EMI payments the same and increase the loan tenure or increase the EMI payments and keep the loan tenure the same.

    A short loan tenure means higher EMI payment but lower interest payments whereas a long loan tenure means lower EMI payments and higher interest payments. Choose a suitable loan tenure so as to save up on your overall interest payments. In order to choose a suitable car loan tenure, use the online car loan EMI calculator to compare the effect of different loan tenures on your interest payments.

    Car Loan Amortisation Table

    The car loan amortisation table represents the periodic repayment schedule of your car loan. The table consists of the monthly EMIs, interest payments, and the outstanding dues after each EMI payment has been made. Here is an example for better understanding of the car loan amortisation table:

    Car Loan Amount - Rs.15 lakh

    Car Loan Tenure - 6 years

    Car Loan Interest Rate - 13%

    Processing Fee - 2%

    Based in the EMI formula, E = P x r x (1+r)^n/((1+r)^n – 1), the overall breakup of the total amount payable is as follows:

    Monthly Car Loan EMI - Rs.30,111

    Total Interest Due - Rs.6,68,003

    Processing Fee - Rs.30,000

    Total Amount Payable - Rs.21,98,003

    The below amortisation table represents your repayment schedule for a loan amount of Rs.15 lakh at 13% interest rate in regular instalments over a loan tenure of 6 years (2018 to 2023):

    Year Principal Paid Interest Paid Total Payment (Principal + Interest) Outstanding Loan Balance
    2018 Rs.1,76,611 Rs.1,84,723 Rs.3,61,334 Rs.13,23,389
    2019 Rs.2,00,989 Rs.1,60,345 Rs.3,61,334 Rs.11,22,399
    2020 Rs.2,28,733 Rs.1,32,601 Rs.3,61,334 Rs.8,93,667
    2021 Rs.2,60,306 Rs.1,01,029 Rs.3,61,335 Rs.6,33,262
    2022 Rs.2,96,236 Rs.65,098 Rs.3,61,334 Rs.3,37,126
    2023 Rs.3,37,126 Rs.24,209 Rs.3,61,335 Rs.0

    What are the benefits of a car loan amortisation table?

    The advantage of an amortisation table is that you can find out how much your car loan will cost you monthly and when your loan will be paid off. Depending on the amortisation table which represents your car loan repayment schedule, you can create a monthly budget to maintain a low debt-to-income ratio. When you have a high debt-to-income ratio, there are higher chances of defaulting on the loan. Defaulted car loans reflect badly on your credit report. It acts as a red flag for lenders. Thus, hampering your loan prospects. Therefore, create a budget in order to ensure you make timely EMI payments. Making regular loan EMI payments is a method of improving your credit score. A good credit score will improve your chances of loan approval.

    In the case of a floating rate of interest, the change in interest rates over the loan tenure can result in higher or lower interest payments. You can use the online EMI calculator to get revised amortisation schedules for varying combinations of interest rates and loan tenures. Depending on the results, you can choose a suitable loan tenure to curb your overall interest payments. The same applies to car loan prepayment. Banks allow borrowers to prepay a part of the whole of the car loan after 12 successful EMI payments. You can use the EMI calculator to add the prepayment fee and prepayment amount to the EMI calculation in order to get a revised amortisation schedule. It is wise to make part prepayments and reduce the loan tenure, rather than fully pre-closing the car loan because it can have a negative effect on your credit score.

    Customer Reviews

    • Bank of Baroda Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience with them has been quite good with this loan where the loan amount has been sufficient. The interest rate which they offered has been nominal when compared with the market rate and there has not been any extra charges which they had made so far. Their customer support team had also been supportive as well.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      Before three years I purchased second vehicle that is Hyundai I 10 , the documentation process was good with HDFC. The dealer coordinated with the bank, hence the process was quick. I got multiple options but I chosen HDFC, the Interest rate is better because I am an existing customer.
      Was this review helpful? 0
      , delhi
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I was taken car loan from HDFC, first time I purchased SANTRO car, the documentation was very convenient. They gave me the door step service I went to the dealer and they done the process, and on time I got the car deliver. They gave me the flexible emi option.
      Was this review helpful? 0
      , delhi
      Reviewed on Jan 18, 2019
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been quite a good experience i had with this car loan and the loan amount which they had provided has been sufficient as well. The interest rate with them was around 9.25% which was nominal when compared with the market rate. The charges which they had made has been nominal as well, and even their customer support has been responsive as well.
      Was this review helpful? 1
      , bhubaneshwar
      Reviewed on Jan 17, 2019
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been taken my car loan with State bank of India, they have given me sufficient loan amount, and i am satisfied with the loan amount , and the rate of interest they have charged me up to 9.45% which is bit high compare to other bank,i have asked for 9 % but its okay, and the processing fee they have charged me was nominal,overall service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 17, 2019
    • Kotak Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been taken my car loan with Kotak mahindra bank recently ,like 2 months before i took this loan, and i am happy with the loan amount they have given me ,it was sufficient for me, and the rate of interest they have charged me up to 9.3% which was nominal for me and the processing fee they have charged me was nominal, the loan amount process went smoothly. the overall service rendered by them was really good.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 17, 2019
    • Central Bank of India Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience i had with this loan and the loan amount which they had provided has been sufficient. The interest rate with them is quite nominal when compared with the market rate. There has not been any sort of additional charges which they had made so far.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 13, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my car loan in State Bank of India by last year. The charges are normal. I have spend down payment nearly 1L out of 7L. The branch is near to my residence so will never contact the customer service. The process was immediate and it was completed within 2 days.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 12, 2019
    • HDFC Bank Car Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      HDFC gave me the door step service for the car loan. I took the loan before three years. It was the fantastic experience for me because I got the better interest, I took the loan for 5 years but I done the foreclose in three years , there was no charges for it.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Jan 11, 2019
    • Capital First Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      The process in getting my Car loan from them has been quite good and the process went smooth. The loan amount was sufficient but the interest rate with them has been quite high when compared with the market rate. Their customer support and their response has been good and has been helpful as well.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 10, 2019
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      My car loan experience with HDFC has been good and the loan amount which they had provided has been sufficient. The interest rate with them has been nominal and there has been some charges like processing fee. Overall their has been a help from their customer support as well.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 09, 2019
    • HDFC Bank Car Loan
      "Average Loan Service"
      0.5 3.0/5 "Satisfactory"
      I have approached the bank directly for my car loan. Since I'm existing customer of HDFC for 13 years, i have chosen them. I purchased the loan amount of Rs. 2 lakhs. They have offered me a interest rate of 16% In October 2018, i have closed this loan. Total tenure period of the loan was 3 years. Car Dealer has recommended me about this loan.
      Was this review helpful? 4
      , srikakulam
      Reviewed on Jan 09, 2019
    • Magma Car Loan
      "Average service"
      0.5 1.5/5 "Bad"
      I have been using my car loan with Magma Fincorp previously, they have given me sufficient loan amount ,the rate of interest they have charged me was high,and the processing fee they have charged me was high , i was not happy with there service.
      Was this review helpful? 3
      , ghaziabad
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using my car loan with HDFC bank, there service is too good, the loan amount they have given me was sufficient,the rate of interest they have given me up to 9% which is nominal for me,and the processing fee they have charged me was nominal only they have charged me up to 1% only,and still my loan is running ,there was no hidden charges they have charged apart from that,overall service is good.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Nice offer and nice loan"
      0.5 4.0/5 "Great!"
      I had a car loan with HDFC 1 year back. They have given me a nice offer hence i opted the loan with HDFC. I'm not sure about the partial payment and pre-closure facility. They have given me a nice interest rate according to what i want. I was taken a loan amount of Rs. 3 lakhs.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 08, 2019
    • review Car Loan
      "Need to reduce the charges"
      0.5 3.5/5 "Pretty good"
      I have taken a car loan in Nissan Institution, it was good. I bought the car from same showroom and they have provided me a facility. The rate of interest was high. The documentation procedure was simple. I have taken the loan almost 2 years back and its still running. The loan tenure is 5 years.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Looking for less interest rate"
      0.5 4.0/5 "Great!"
      My car loan experience was good with HDFC bank, loan amount was sufficient and the rate of interest was high when compared to other banks. Customer service was good and they responded on time. The tenure period for this car loan is for 5 years.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jan 08, 2019
    • ICICI Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with ICICI bank, the rate of interest they have charged me was nominal and they have charged me processing fee they have charged me which was nominal, the loan amount they have given me was sufficient according to the car price i got my loan, still this loan is running,overall service is good.
      Was this review helpful? 3
      , new delhi
      Reviewed on Jan 08, 2019
    • IOB Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with Indian overseas bank, the loan amount they have given me was sufficient, they have charged nominal rate of interest they have charged me up to 9 % which was nominal and there is zero processing fee , so far there service is have experience was good, they have not taken any hidden charges ,there overall service is good.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Good loan experience with HDFC"
      0.5 4.0/5 "Great!"
      My car loan running with HDFC bank, the customer service is super and the fast approval on the disbursement. They taken 15 days to deliver the car. The principal amount is Rs. 4 lakhs for the tenure of 5 years, the car model is baleno which is latest.
      Was this review helpful? 1
      , aligarh
      Reviewed on Jan 07, 2019
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