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A car loan EMI is the instalment that you pay every month for repaying the car loan that you may have taken from a bank or financial institutes. The monthly instalment that you pay towards clearing the car loan is a car loan EMI. Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won’t change, the proportion of principal and interest components will change with time. With each successive payment, you’ll pay more towards the principal and less in interest.
Calculating the EMI on a car loan has been made simple and error-free with the use of a Carzprice.com Car Loan EMI Calculator. A Car Loan EMI Calculator is a tool that helps determine the EMI that needs to be paid towards the repayment of a car loan. It helps a person decide and select a suitable car loan amount and also helps them manage their finances.
The Calculator runs on a formula which computes the information that a customer provides to help calculate the EMI which has to be paid. Most EMI Calculators will require information pertaining to the loan tenure, loan amount, interest rate, processing fee, etc. The more information that you provide helps the EMI Calculator come to a more accurate result.
With today’s world moving fast towards modernization, people have also been striving to purchase a four-wheeler of their own to help make their travel a lot easier. A car loan can come as a relief to a lot of people who do not have the monetary resources to purchase a car on their own The customer can visit the official website of the bank for exact details like Interest, processing fees and other charges.
E is the EMI payable on the car loan amount
P is the Car loan Principal Amount
r is the interest rate value computed on monthly basis
n is the loan tenure in the form of months
For the EMI value, you just need to enter details regarding the loan, the rate of interest and repayment. You can also enter the processing fee, and then your work is done. You would be able to find the amount you need to pay as your monthly instalment.
Through the car loan EMI calculator, you can also notice the impact prepayment would have on your EMI. The schedule of your car loan amortization and of repayment can also be found with the help of the EMI calculator. By calculating the prospective car loan EMI with different tenures and rates of interest, you can assess distinct schemes for their profitability. After a clear analysis, you can choose the car loan offer among various car loan offers that meet your requirements at the lowest possible expenses.
The EMI of a car loan depends on three major parameters – Loan Tenure, Principal Loan Amount, and Interest Rate.
Loan Tenure: The tenure of a loan refers to the loan repayment period during which the borrower pays a monthly EMI to repay the loan amount. It should be noted that the longer the loan tenure, the EMIs that a borrower will have to repay will be smaller.
Principal Loan Amount: The total amount that has been sanctioned to the borrower by the lender is called the Principal Loan Amount. If the loan amount that has been sanctioned is high, the EMIs that need to be repaid every month will also be relatively high.
Interest Rate: This refers to the interest rate that has been levied on the principal loan amount. The rate of interest levied on a car loan varies from person to person. Parameters like credit score, loan history, etc. play a vital role in obtaining a good interest rate. If the rate of interest that’s levied on a car loan is high, then the EMIs that will have to be repaid will also be high. other factors which also affect the EMIs which are paid and these are: Type of interest levied on a car loan, Making prepayments in parts, Preclosure of a car loan, Change in market rates, Change in base rate
Amortization helps you to check interest & principal amount paid and to be paid at any given point of time during loan tenure, which helps you in financial planning like to pre close or part payment of principle etc..
Starting balance - This refers to the starting balance of a period which the borrower needs to pay back to the car loan providerin the initial phase of the tenure.
Ending balance - Closing balance is the amount that you need to repay to the car loan provider at the end of the tenure when the car loan maturity is reached.
Interest paid - This value corresponds to the total monthly amount of the EMI that is paid as interest to the bank. Successive months will witness a reduction in this amount.
Principal paid - This value is the amount of the EMI that is repaid to the car loan provider as a part of the principal.
The annual table provides details for the total amount, EMI, total interest, monthly interest paid, flat interest rate and other such variables can be viewed.
Disclaimer : The calculation performed by EMI Calculator is based on the information you entered and is for illustrative purposes only. This calculation reflects amounts in Indian Rupee rounded to the nearest whole figure. Estimated monthly payments DO NOT include any processing or other possible fees which may depend on the financial institution / banks.All loan figures are based upon non-commercial usage and are subject to credit approval from an independent lending source. Actual down payment and resulting monthly payments may vary depending upon type and use of vehicle, regional lender requirements, and the strength of your credit. Check with your dealer for exact monthly payment.