Car Loan EMI Calculator

Nowadays, it is much easier to buy your dream car due to the various car loan schemes offered by different lenders. Car loans are offered at attractive interest rates and a repayment tenure of up to 8 years.

Various banks and third-party websites offer a Car Loan EMI Calculator that allows you to calculate the Equated Monthly Instalments (EMIs) that must be paid. The Car Loan EMI calculator offered by BankBazaar is simple to use and is free. Basic details such as the repayment tenure, principal amount, and the rate of interest must be entered to calculate the EMI.

Calculation of Car Loan EMI

The table below provides you the car loan repayment schedule for a loan amount of Rs.5 lakh, EMI of 10,624, tenure of 5 years, interest rate of 10% p.a.

You can make use of the Car Loan EMI calculator to estimate the amount you have to pay each month towards your car loan. The online EMI Calculator offered by BankBazaar will calculate the monthly instalments as well as provide you with a detailed loan repayment table presenting you with details such as the principal amount and interest amount being paid and the outstanding balance after payment of the instalment.

Process to use BankBazaar’s Car Loan EMI Calculator

The procedure that must be followed to use the Car Loan EMI calculator offered by BankBazaar is mentioned below:

1. The calculator can be found on the top of this page. The first step would be to select the loan amount.
2. Next, select the repayment tenure.
3. Enter the rate of interest
4. Click on ‘Calculate’. The results will be displayed immediately.

You can check the principal amount and the interest that is being paid every year. The calculator also provides the outstanding balance at the end of every year.

How is EMI Determined

The EMI for any type of loan is essentially calculated using a formula. The formula is as follows:

E = P x R x (1+R)^n / {(1+R)^n – 1}

where ‘E’ stands for the EMI you owe,

‘P’ stands for the principal amount,

‘R’ stands for the interest rate applicable to your car loan,

and ‘n’ stands for the tenure of the car loan (in months).

Fixed rate vs. Floating rate of interest

Car loans are offered at fixed as well as floating interest rates. The fixed rate will remain unchanged for the tenure of the loan, but the floating rate is subject to change from time to time. The different factors that can affect interest rates include applicable taxes, liquidity, inflation, etc.

• Fixed Rate EMI Calculation

Under the fixed rate EMI calculation, the EMI you have to pay towards the car loan remains unchanged throughout the loan tenure. This is so because the company offered a fixed rate of interest for the whole period.

For example, for a car loan equal to Rs.5 lakh at 10% p.a. interest for a 3-year tenure, the interest payable will be Rs.16,134 per month. This will be the amount payable throughout the tenure of the loan.

• Floating Rate EMI Calculation

Under the floating rate EMI calculation method, the EMI payable differs based on the interest rate applicable at the time. The floating rate of interest changes based on the market lending rate.

Let’s say you have taken a car loan equal to Rs.5 lakh for a 3-year tenure. The interest rate for about a year is 10% so the EMI payable, as in the example above is Rs.16,134. After completion of 1 year, you have an outstanding balance of Rs.3,36,409. The car loan interest rate at that time is then changed to 8%. So, for the rest of the tenure, the EMI payable will be Rs.15,215.

Note that the interest rate may increase or decrease within the loan period depending on market fluctuations.

Car Loan Fees and Charges for Top 3 Banks

Given below is a comparison of a few fees and charges levied by three selective banks:

Note: GST rates will be applicable over and above the rates charges mentioned above.

Car Loan EMI Calculator Offered by Major Banks in India

Advantages of Using the Car Loan EMI Calculator

• Break-Up of the Due Amount is Provided: The car loan EMI calculator helps you calculate the processing fees, interest that is paid, the total amount that must be paid, and the principal amount.
• Your Budget can be Planned: Once you know the EMI that must be paid, you can plan your budget accordingly. In case the loan amount that is being availed is large, you may think of opting for a longer tenure. These details can be determined by using the car loan EMI calculator.
• Accuracy: For the details that are being provided on the calculator, the results that are displayed are accurate. Manual calculations may not provide accurate results.
• Saves Time: The main aim of the Car Loan EMI calculator is to save time. Once the relevant details are entered, the results are displayed almost immediately.
• No Limit: There is no limit to the number of times the calculator can be used. Therefore, you use the calculator with different variants. This can help you choose the best lender and the down payment that must be paid.
• Compare: As there is no limit to the number of times that the calculator can be used, you can compare the EMIs for different values.

FAQs on Car Loan EMI

1. What is Equated Monthly Installment?

Secured loans like home loans and car loans, and unsecured loans like personal loans are repaid through Equated Monthly Installments (EMI). Car loan EMI is a fixed amount that the borrower pays to the lender/bank each month towards the repayment of the car loan till the end of the loan tenure. EMI consists of the principal loan amount and interest payment.

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

The online car loan EMI calculator can be found on the bank website or a reliable third-party website. The tool is easy to use. You can use it any number of times for free.

The results are instant and accurate whereas manual EMI calculations are prone to human error and are time consuming. You can also input varying combinations of the loan amount, loan tenure, and interest rates to get revised results.

3. What is a Car Loan Repayment table?

A Car Loan Repayment table represents the periodic loan repayment schedule of your car loan. It consists of the breakdown of your car loan repayment details such as the principal loan amount, EMI, interest payment, and the outstanding due after each EMI payment.

4. Can I avail a Car Loan on my existing four-wheeler?

Yes, you can avail a car loan on your existing four-wheeler. You can visit the BankBazaar website to find a bank that offers a car loan for used cars that matches your needs and requirements.

5. Who can avail a Car Loan?

Self-employed individuals, Salaried individuals, Partnership firms, HUFs and Trusts can apply for car loans.

6. Do I need to pay a subscription fee or do I have to make an account with BankBazaar?

No. The Car Loan EMI Calculator is available on the BankBazaar website for no charge at all. You do not have to make a new login ID to use the Car Loan EMI Calculator on the BankBazaar website.

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

Post-dated cheques, ECS mandate, and Standing Instructions are the various ways by which the EMI can be paid.

8. Are there any penalties levied in case I miss an EMI?

Yes, a penalty will be levied if you miss an EMI. Depending on the lender, the penalty charges will vary. Your credit score will also be affected if you miss an EMI.

9. Does the EMI amount depend on the repayment tenure?

Yes, the EMI that must be paid will depend on the repayment tenure that you have selected. The EMI will be lower in case the tenure is longer.

10. Can the car loan EMI be changed in the future?

Based on whether you have chosen a floating rate or a fixed rate, the car loan EMI will change. In the case of floating rate, the EMI will change based on the rate of interest for the month. However, the EMI will not change if you have opted for a fixed rateBased on whether you have chosen a floating rate or a fixed rate, the car loan EMI will change. In the case of floating rate, the EMI will change based on the rate of interest for the month. However, the EMI will not change if you have opted for a fixed rate

11. Is it possible to avail a car loan for a used car?

Yes, most lenders offer car loans for used cars.