Customers of Federal Bank are offered a car loans at pocket-friendly prices and affordable interest rates. The car loan offered by Federal Bank can help customers purchase their dream vehicles without having to go through financial hassles. With effect from September 2018, Federal Bank offers car loans for new cars at an interest rate ranging between 8.65% and 9.20%. Car loans for used cars are offered by the bank at an interest rate of 13.75%.
It is very important for prospective borrowers to do their research before applying for a car loan. To this end, individuals who are looking to apply for loans can use a car loan EMI calculator tool to get a complete breakup of the loan. The EMI calculator is designed to ensure that prospective borrowers understand the breakup of their loan repayment.
How to use BankBazaar Federal Bank Car Loan EMI Calculator to understand your car loan repayment
To calculate your car loan EMI for various tenures, you can use the EMI calculator tool that is available on the BankBazaar website, an individual can calculate the EMIs for various tenures. This tool is easy-to-use and works on an attractive interface. It even provides you an amortization graph that enables you to visually analyse your debt repayment schedule over a period of time.
Federal Bank Car Loan EMI Calculator – How does it work?
If a person wants to calculate the details of their car loan, they would simply have to input the details pertaining to their loan into the EMI Calculator tool. The steps mentioned below will have to be followed to ensure that the customer gets the most accurate results on their car loan:
- Once you navigate to the car loan EMI calculator webpage on the BankBazaar website, you will need to key-in the loan amount that you wish to apply for. The customer can also choose to drag the pointer to indicate the loan amount that they wish to apply for.
- Next, you will have to either key in the loan tenure or drag the pointer to indicate the loan tenure.
- You will then have to enter the interest rate that is charged by Federal Bank when providing you the loan.
- After entering the interest rate, you will have to enter the processing fee that is levied on the loan by the bank.
- Next, you will need to indicate if you wish to make prepayments during the loan tenure or not. If you do wish to make prepayments, you will have to provide additional information such as the prepayment amount, prepayment fee, prepayment frequency, and so on.
- If you do not intend to make prepayments towards the car loan, you will need to select the appropriate option and then click on the “Calculate” button. The customer will then be provided with a breakup of the total amount that they will have to pay.
- The EMI calculator tool provides an insight into the loan amount and tenure with the option of prepayment and without it.
Additionally, the tool provides an insight on the loan amount and tenure with the option of prepayment and without it.
Example: Let us imagine a scenario in which the interest rate offered by the bank is 9.75% and the processing fee is 2% of the loan. The example assumes that no prepayments are made towards the loan. Let us analyse the EMIs (for various tenures) on car loans using the BankBazaar Federal Bank Car Loan EMI Calculator.
|Loan amount (Rs.)||Interest rate||Processing fee||EMI for 2 years (Rs.)||EMI for 3 years (Rs.)||EMI for 4 years (Rs.)||EMI for 5 years (Rs.)||EMI for 6 years (Rs.)||EMI for 7 years (Rs.)|
BankBazaar Federal Bank Car Loan EMI Calculator – Features and Benefits
The car loan EMI calculator is a handy tool to use when an individual wants to apply for a car loan. Some of the key features and benefits of the BankBazaar EMI calculator are as follows:
- The EMI calculator tool that is available on the BankBazaar website is free-of-cost.
- In case a customer faces any issues when using the EMI calculator tool, they can get their queries solved by a team of highly trained individuals at BankBazaar.
- This is a user-friendly tool that displays the amortization table along with the loan breakup.
- The tool can be used multiple times till you arrive at the right combination of tenure, principal, and an affordable EMI rate.
- The tool provides the option of inputting any prepayment that a customer wishes to make during the loan tenure.
Federal Bank Car Loan EMI Calculator FAQs
- What are the significant features of the Federal Bank car loan?
Some of the key features and benefits of car loans offered by Federal Bank are as follows:
- What is a car loan amortization table?
A car loan amortization table shows the payment schedule of your debt in a tabular format. It displays the breakup of the principal amount, interest rate, the total paid amount, and the outstanding loan balance.
- The bank provides loans up to 100% of the car’s ex-showroom price.
- The lender offers a repayment period up to 84 months.
- The bank offers competitive and affordable interest rates.
- The bank offers a personal accident insurance cover with a sum insured of Rs.10 lakh to borrowers free-of-cost.
- The car loan can be availed for both used cars and brand new cars.
- The bank processes the loan application in a quick and timely manner.
- What is the formula for calculating car loan EMI?
Car loan EMIs are calculated using the following formula:
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1],
Where, P is the principal amount, R is the interest rate on a monthly basis, and N is the number of installments.
This formula does not take into account the prepayments that you make towards the loan.
- Is it easier to calculate the EMI using the formula or an excel sheet, in comparison to the EMI Calculator tool?
No, calculating the EMI using the formula or an excel sheet would be time-consuming and error-prone. Moreover, it would be complicated to calculate the EMI when prepayments are made towards the debt. Hence, it is recommended to use the Bankbazaar Federal Bank Car Loan EMI Calculator for the same.
- Will I have to pay a prepayment penalty if I wish to prepay my loan amount?
It is advisable to read through the loan documentation to understand if the bank will levy a penalty for the same. Alternatively, you can visit the nearest branch of the lender or call the bank’s customer service desk for information about prepayment charges.