India is currently the world’s 4th largest market for 4-wheelers. Growth has been steady at 9.5% year-on-year. It is no wonder that the demand for a reliable and easy to use car loan EMI calculator has also skyrocketed.
While the Internet is flooded with calculators determining car loan EMIs, simplicity is the key that make it stand out. Groww brings you the best and easy to use EMI calculating tool which will help you take an informed decision on how much funding you need to purchase your dream car, how much your EMIs are likely to be and other details.
Nowadays, getting a dream car is within everyone’s reachowing to the various car loans available by different lenders. Gone are those days when in order to get a new car, one had to start saving a fair amount of money at a very young age. One can get pre-approved car loan with a decent income and credit score but subject to maximum tenure of the loan and the loan amount.Regardless of the type of vehicle you are about to purchase, a car loan is a substantial amount which you need to repay over the tenor along with the interest. This is where a car EMI calculator comes in handy.
Here are some obvious benefits of using a this calculator:
Groww follows a standardised formula:
E= P. R. (1+R)^n/[(1+R)^n -1]
The various components of the formula are as follows –
|P||Determines the principal amount|
|R||The rate of interest payable every month|
|N||The total tenure in months|
|E||Total EMI payable each month|
As an example, if you borrow Rs 10 Lakh from a financial institution (P), with the rate of interest 10% (R), for a total tenure (N) of 7 years (84 months), using the formula, your EMI comes to Rs 16,602. The sum payable at the end of the tenure is Rs. 16,602 x 84 or Rs. 13,94,568. Of this, your interest amount payable is Rs 3,94,568.
You can choose from a range of fixed and floating interest rates from our website.
An amortization schedule is the complete table of periodic loan payments including the principal and interest amount in each payment until the loan is fully repaid. It provides a complete guide to breaking down a credit option such as a car loan into a series of fixed payments. The monthly payment remains the same, the payment is made up of parts that differs over time. The best thing about an amortization schedule is it is very helpful for banks and financial institutes to keep a complete track of the loans. Provided below is the amortization schedule for a car loan worth Rs, 8 Lakh for a tenure of 5 years at an interest rate of 9.5%.
|Principal (Rs.)||Interest (Rs.)||Principal + Interest (Rs.)||Balance to be Paid (Rs.)|
The principal and interest components will respectively increase and decrease proportionately for the entire loan tenure.
You can easily use our calculator on our website by following these steps –
Groww offers you complete financial solutions across a wide range of products. If you are looking for an online car loan EMI calculator, Groww is invaluable.
As you can summarise, an EMI calculator can prove to be immensely beneficial for all prospective borrowers. Visit the lender fully prepared with all these details, and avail genuine benefits on your car loan.
“Looking to invest? Open an account with Groww and start investing in direct Mutual Funds for free”
Que. How much time does it take to use the calculator?
Ans. If you have the details with you (total amount, interest levied and tenure), it takes only a few minutes.
Que. Can I avail myself a car loan to buy a used vehicle?
Ans. Yes, almost all major financial institutions provide loans for used vehicles. Also, the calculator provided on this page can act like a used car loan EMI calculator to determine the EMIs. However, ensure that the used model comes with the necessary documentation.
Que. What is the typical tenure of a car loan in India?
Ans. In India, most car loans run for 1 to 5 years, although certain new plans to run for up to 7 years. The lower the tenure, the higher the EMIs you need to pay.
Que. Do I need a co-guarantor for a car loan?
Ans. It is not mandatory to have a co-guarantor. However, if you do not meet the eligibility criteria on your own, you may need one.
Que. Can my car loan application be rejected?
Ans. On occasion, your car loan application may be rejected if you do not fulfill the minimum eligibility criteria or if there is a mistake in your documentation. Besides, your CIBIL score has to be 750 or more at all times.
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