Initially founded in 1938 as Devkaran Nanjee Banking Company Ltd., by the family of Devkaran Nanjee, Dena Bank is currently a public sector banking institution. It was nationalized in 1939. At present, Dena Bank has over 1739 Branches and more than 1482 ATM’s across the country. Dena Bank Car Loans are offered to individuals and to Partnership firms, Proprietary Firms, Corporates, etc. for the purpose of financing the purchase of new cars or second-hand cars. Dena Vehicle Loan scheme offers a lower rate of interest for women.
Car loan EMI can be easily calculated by a prospective borrower in order to understand it’s affordability and repayment schedule, even before applying for a loan. Car loan EMI can be calculated on the basis of factors such as desired loan amount, Interest rates (10.10% / 10.20% ) & loan tenure. The Dena Bank Car Loan scheme is the best scheme to finance the purchase of your dream car since it comes at incomparable interest rates and repayment options that are highly flexible. It also offers a lower-than-normal car loan interest rate for women.
|Interest Rate||Repayable up to 5 Years : 10.20% (floating) For women borrowers : 10.10 % (Floating)|
|Minimum loan amount||Rs 1 lakh|
|Maximum loan amount for purchase of a new car||Rs. 200 lakhs|
|EMI per Lakh (for 5 year loan tenure)||Rs. 2,135*|
With the flexibility of paying back your car loan in the form of Equated Monthly Installments(EMIs), customers can easily own a car without having to bear the brunt of a lumpsum expense. By paying nominal rates of interest for a tenure of your choice, you can get your dream car. When the loan tenure increases there would be an increase in the loan amount and a reduction in the rate of interest to paid.
EMI (E) = [P x r x (1+r)^n]/[(1+r)^n-1]
P stands for the principal or the loan quantum,
R is the rate of interest applicable per month [ Therefore, for an annual interest rate of 10.20%, the rate of interest will be 10.20/(12 x 100)],
N is the number of monthly installments made/ no. of months taken for car loan repayment.
For example: If you take a car loan for Rs. 2,00,000 at an interest rate of 10.20% with a loan tenure of three years, an estimate of the total interest payable would be Rs. 33,000, and the total payment made by you at the end of the tenure will amount up to Rs. 2,33,000.
In the following illustration, for a car loan amount of Rs. 4,00,000 to be repaid in 2 years at an interest rate of 10.20% from Dena Bank (Calculations based on EMIs paid in advance), the EMI per month from Oct 2016:
|EMI||Principal||Interest Amount||Total Payment||Balance Due|
|Oct 2016||Rs. 15,095||Rs. 3,400||Rs. 18,495||Rs. 3,84,905|
|Nov 2016||Rs. 15,223||Rs. 3,272||Rs. 18,495||Rs. 3,69,682|
|Dec 2016||Rs. 15,353||Rs. 3,142||Rs. 18,495||Rs. 3,54,329|
|Year||Principal||Interest Amount||Total Payment||Balance Due|
|2015||Rs. 45,671||Rs. 9,814||Rs. 55,485||Rs. 3,54,329|
|2016||Rs. 1,94,734||Rs. 27,205||Rs. 2,21,939||Rs. 1,59,595|
|2017||Rs. 1,59,595||Rs. 6,859||Rs. 1,66,454||Rs. 0|
Total interest amount to be paid for a Dena Bank Car Loan amount of Rs. 4,00,000 for 2 years at 10.20% interest would be Rs.43,878. Therefore, the total payment made by the end of the tenure if EMI is paid in arrears is Rs.4,43,878. The interest rate decreases until the loan is repaid and the principal loan amount repayment increases with the tenure.
There are several factors that can affect the loan amount offered to a borrower by Dena Bank, and also the amount of interest that is to be paid per month. These in turn determines the EMI to be paid out by the borrower. Some of these factors have been described below.
The CIBIL TransUnion Score is a 3 digit number which ranges from 300 up to 900 and this score reflects an individual's credit history. This is used by banks to evaluate whether the applicant is eligible for a loan, what his/her repayment capacity is, etc. A good CIBIL Score ensures that the applicant will get a positive response from the Bank for his/her auto loan application and also empowers the applicant to be in a position of power while negotiating for a lower rate of interest. Most lenders conduct this initial check while processing the borrower’s creditworthiness for the loan. High CIBIL score indicate greater probability of procuring car loans at an attractive interest rate. Those with higher CIBIL scores are also seen as a lower risk category and hence can avail loans more easily as compared to those with low CIBIL scores.