1. Build your Credit Score
2. Reduce your Current Borrowing / EMI Costs
Car Loan EMI Calculator makes it relatively easy for the people to calculate the EMI payment towards their car loan. It is a tool that assists in calculating the loan amount that has to be paid every month. It allows an individual to choose the appropriate amount to borrow while keeping their finances stable.
Car Loan EMI Calculator functions on a formula devised to compute EMIs. This formula estimates the data entered by an individual and generates results based on the input. To calculate the EMI accurately, you'll be required to provide details like the loan tenure, the loan amount, processing fee, interest rate, etc. The accuracy of the results of the EMI calculator depends on the data provided. So, if you're plugging in comparative data on the calculator, the degree of accuracy of the result would be less.
The advancements in technology and the accelerated rate at which the use of four-wheelers is growing, many people across India aim to buy their cars. Buying a car isn't an easy task, considering the high prices of cars. Due to this, people tend to buy cars by taking a car loan. A large number of website assist people in calculating Car Loan EMI which gives people an approximation of cost involved in buying a car they like.
Car loan EMIs are calculated by using a mathematical formula:
E = P x R x (1+R)^n / {(1+R)^n-1}
Here, E is the EMI that you owe on the loan that you have taken, P stands for the Principal Amount, R stands for the rate of interest applicable on loan and n stands for the tenure of the car loan.
Car Loan EMI Calculator functions in a simple way. You are required to enter the details linked with your car loan and then click on Calculate to find out the results.
Calculate Car Loan EMI
If you wish to pay your loan in advance, you can hint the tool by simply selecting Yes/No from the options in the 'Pre-payment' section. If you choose 'Yes,' the information linked to the pre-payment amount will have to be provided. If you do not wish to pay your car loan in advance, then you can select No, and the Car Loan EMI Calculator will calculate the EMI, conventionally.
EMI Calculator can calculate the amount of EMI for different tenures and different interest rates. You can calculate different combinations of interest rates and loan amounts in the EMI calculator to find out the loan amount that suits you the best. By using the EMI loan calculator, you can compare the options available and choose the best-suited loan amount for you.
You can also make the EMI calculations by using Microsoft Excel. You can use the following function to calculate your EMI by using the function mentioned below:
PMT (rate, nper, pv)
The 'rate' defines the rate of interest applicable on loan, 'nper' is the number of installments and 'pv' is the principal amount.
Lowest Car Loan EMIs from Top Banks 2018 | ||
Bank Name | Interest Rate (New Car) | Interest Rate (Used Car) |
Andhra Bank | 1-year MCLR + 0.70% | 1-year MCLR + 3.45% |
Axis Bank | 10.75% to 11.25% for tenures up to three years, and 8.50% to 10.25% for tenures over three years | 14.50% to 16.25% for tenures up to three years, and 13.99% to 14.99% for tenures above three years |
Bank of Maharashtra | 1-year MCLR + 0.25% | 1-year MCLR + 0.75% |
Central Bank of India | 1-year MCLR + 0.40% | 1-year MCLR + 1.50% |
Corporation Bank | 9.30% for cars priced under Rs.50 lakh, 9.80% for cars priced above Rs.50 lakh, 8.65% for defense personnel and government employees for vehicles priced under Rs.50 lakh, and 11.00% for vehicles used for commercial purposes | - |
Federal Bank | 1-year MCLR + 0.25% to 1-year MCLR + 0.55% (floating) | - |
HDFC Bank | 9% to 10.25% (based on the vehicle's make and model) | 11.50% to 17.50% (based on the vehicle's make, model and age) |
ICICI Bank | 7.75% to 17.56% | 10.00% to 17.65% |
IDBI Bank | 9.00% for existing customers (minimum of three months), and 9.10% for new customers | - |
IndusInd Bank | 12.00% to 28.00% for small commercial vehicles, 10.65% to 15.50% for passenger vehicles, 10.65% to 16.00% for light commercial vehicles, 10.60% to 15.00% for medium and heavy commercial vehicles, 10.60% to 16.00% for Jeeps and MUVs, and 13.70% to 23.50% for tractors | 14.00% to 21.00% |
OBC | Base Rate + 0.50% = 10.20% for tenure up to three years, and Base Rate + 0.75% = 10.45% for tenures up to seven years. | Base Rate + 3.00% = 12.70% |
State Bank of India | 8.90% to 9.40% | 1-year MCLR + 4.65% = 12.80% |
Punjab National Bank | 1-year MCLR + 0.60% to 1-year MCLR + 1.05% (floating), and 1-year MCLR + 0.95% (fixed) | - |
Tamilnad Mercantile Bank | 8.95% to 10.95% | 8.95% to 11.40% |
Union Bank of India | 1-year MCLR + 0.50% = 8.70% | 1-year MCLR + 3.50% = 11.70% |
United Bank of India | 1-year MCLR + 0.30% = 8.90% for male applicants, and 1-year MCLR + 0.25% = 8.85% for female applicants | 1-year MCLR + 1.05% = 9.65% |
The tool is relatively easy to use. You'll be required to enter the details linked with your car loan, and the EMI Calculator will generate the results. In some websites, you can also see the amortization table to understand the repayment information better.
The three main parameters that determine the car Loan EMI are:
The principal amount is the amount of money that is sanctioned to the borrower by the lender. When the principal amount is high, the EMI associated with the loan is also high.
Tenure is the period taken for loan repayment. The monthly installments calculate the amount that must be paid every month until the tenure is over. When the tenure is long, the EMIs paid are smaller.
The rate of interest is the interest rate applicable to the loan amount. The interest rate charged on car loans differs from person to person. If an individual has a good credit score, then they can get a loan at a desirable interest rate. However, if a person has a bad credit history, then they will be paying a higher interest rate on the principal amount.
Other factors which affect the EMI on car loans are a change in the base rates, change in market rates, pre-payment, and pre-closure, inflation/deflation in the economy, etc
It is essential to get an idea of EMI payments before applying for the loan. EMIs are the fixed amounts that must be paid by the borrower every month, and they have two major components; the principal amount and the interest amount. The total interest applicable on a particular car loan and is spread over the tenure of the loan. Usually, a significant part of the EMI is taken up by the interest amount.
Car loan EMI calculator makes complex calculations easier and gives accurate results with a minor click of a button. You can check EMI amount applicable to on your car loan by inserting the data and get the results spontaneously. The car loan EMI calculator tool could aid you to get an idea about the amount you will be required to pay every month. This will make you aware of the amount that you're liable to pay each month, and it won't create any extra pressure on you. Some of the main features of the Car Loan EMI Calculator are:
Accuracy - Manual calculation of the EMI could lead to errors, and it can also take a lot of time. The Car Loan EMI Calculator makes sure that the results are accurate to the last digit and it also saves a considerable amount of time of the borrower
Free of Cost -The best thing about the Car Loan EMI Calculator is that it is free of cost on most of the websites. You can use the EMI Calculator to compare different types of car loans which offer varying interest rates and choose the loan which best suits you
Pre-payments - You can also choose to repay the car loan. Some car loan EMI calculator tools can also calculate the pre-payment structure based on the data of the car loan that you are applying for.
Analytical Comparison - You can use the EMI calculator to analyze the loans obtainable in the market. You can check the tenure applicable on loan, the amount of loan and the interest rate applicable on the car loan from different banks to choose wisely.
Before applying for a car loan, it is vital to carry out customary research to make sure that you get the most affordable options. There are three ways in which the interest rate on car loans are calculated. Let's take a look at them:
Fixed rate of interest - The rate of interest in this process is the same regardless of the payment of the debt. The amount of interest applicable to the loan is computed based on the loan amount. After the total amount of interest payable is calculated, it is spread uniformly throughout the tenure.
0% financing scheme - Under the 0% financing scheme or zero interest scheme, the borrower is not charged any interest on the loan amount. However, the borrower must ensure that there aren't any hidden charges on these schemes. Usually, lenders charge a basic "upfront fee" through the subvention scheme.
Reducing Balance Method - Under this method, the interest rate is levied on the principal amount. The interest rate applicable in this process is generally higher than the interest rate levied on the car loans taken via the fixed interest rate method. However, this method is considered to be cheaper in the long-run.
Those who are making EMI payments for their car loan are required to know that the repo rate. It has been increased by RBI and is applicable since 1st July 2018. The repo rate has a direct effect on borrowings. Hence, it is necessary to keep a tab on the repo rates before taking any, including car loans.
You can get a car loan to buy a new car or a used four-wheeler. Lending institutions like banks and non-banking financial institutions make it easy for customers to gain access to funds. People with stable occupation and steady income find it relatively easy to approach the bank to get a car loan. People who fall in the range of 21-60 in terms of age, can avail loan for buying a car in the leading banks of our country.
Here are the five leading banks that offer Car Loan EMI Calculators:
HDFC Car Loan EMI Calculator - Individuals who avail car loans from HDFC Bank can get a 100% coverage on the car cost, and the loan can be availed at an attractive rate of interest. The tenure of an HDFC car loan can extend up to 7 years, and an individual doesn't need a guarantor for the loan. Less paperwork and speedy disbursal are the leading reasons for its popularity. The company also provides an EMI calculator on its official website to aid the borrowers in calculating the amount of payment that they will be making monthly. Once, you open the EMI Calculator link, enter the details of your car loan, like the loan amount, interest rate, the tenure and then click on calculate. The details of your repayment will be shown on the screen. It is essential to keep your repayment capacity in mind before availing a car loan from HDFC. If you have a high debt-to-income ratio, your chances of defaulting on the loan will be higher. Skipping an EMI payment or even delaying it could hurt your credit score. Make sure that your EMI repayment amount is less than 50% of your salary.
Axis Bank Car Loan EMI Calculator - Axis Bank offers three different kinds of car loans loan against a car, pre-owned car, and new car loans. Axis bank offers to fund up to 100% of the vehicle's price, and the tenure is spread over seven years. For a pre-owned car loan, an individual can get funding of 90% of the cost of the car. If you're taking the loan against a car, then Axis Bank can provide funding up to 10 lakh with tenure ranging as high as 15 years. The car loan can be availed easily online. Axis Bank also offers the EMI Calculator which is convenient and free of cost. You can use the Axis Bank EMI Calculator to find out the repayment details by plugging in the details of your loan like the loan amount, interest rate applicable and the tenure.
SBI Car Loan EMI Calculator - You can obtain car loans for new and used cars from the State Bank of India. The lender offers reasonably attractive interest rates with tenure ranging up to 7 years. You can borrow up to 85% of the car's value through SBI Car loan. Self-Employed and salaried individuals who are in the age group ranging from 21-65 years can get a car loan from the State Bank of India. The loan can be used to buy passenger cars and commercial vehicles as well, and many borrowers over India favor approaching SBI because the EMI payments and the EMI payable are low with minimal paperwork. The SBI EMI Calculator helps you in finding out the amount that you'll be paying each month. The SBI EMI Calculator is user-friendly and free. You'll be required to provide the details of the loan like the loan amount, interest rate and tenure and you will be shown the exact repayment details on the screen. For a better understanding of the repayment details, you can also get access to the amortization table.
Canara Bank Car Loan EMI Calculator - The car loans extended by Canara Bank can be availed at reduced rates of interest. The bank offers a loan amount ranging between 85%-90% of the vehicle's price, and it offers competitive interest rates to female borrowers and government employees. The tenure of the loan can be extended from five to eight years for both used and unused cars. Canara Bank also offers car loan EMI calculator that could aid you in getting a fair judgment of the repayment of the loan. The tool is free and convenient to use. You can enter the loan amount, interest rate, tenure, and processing fee and an amortization table will be shown on the screen with your repayment schedule details.
ICICI Car Loan EMI Calculator - ICICI Bank makes it simpler for you to buy your dream car with up to 100% financing. The tenure of the credit can spread up to seven years. One of the principal benefits of taking a car loan from ICICI Bank is that the existing customers of the bank can use pre-qualified loans. ICICI Bank advances three kinds of car loans: loan against a car, new car loan and pre-owned car loan. An ICICI Bank car loan can be availed online with comfort, but it is important to calculate your EMI payments before you take the loan. The ICICI Car Loan EMI Calculator is user-friendly. You will be required to move the slider on the web page to choose the loan amount along with the tenure of the loan. The next step is to select the rate of interest applicable to the loan. After choosing the loan amount, tenure and the rate of interest applicable, you can click on 'Calculate' and find out the amount of EMI which is payable on the car loan. You can get the following information form the ICICI Car Loan EMI Calculator: