CAR Loan EMI Calculator – Calculate EMI on Car loan
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 car loan calculators, not all are accurate. Groww brings you the best 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.
How can a car loan EMI calculator help you?
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 car loan EMI calculator.
- Saves your valuable time: The primary purpose of an EMI calculator for car loans in India is to save your time. Groww uses a standardised formula for calculating your EMI details. It produces a result as soon as you put in essential data.
- Accurate every time: Unlike manual calculations, an online calculator never makes a mistake.
- Helps you plan your budget: Once you have an idea of how much you need to repay each month as EMIs, you will be able to plan your future financing options better. If you are planning to buy an expensive car, you need a bigger loan amount. To repay that, you need a longer tenor. All these elements are determined by a car loan calculator in India.
- Breaks down the amount you need to pay: A car EMI calculator in India helps you break down the total payable amount under various headings including loan amount, interest applicable and processing fees among others.
The formula to determine car loan EMI amount
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.
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.
How to use Groww’s calculator?
You can easily use our car loan EMI calculator via our website by following these steps –
- Enter your principal amount, interest rate and tenure.
- Click and know your EMI payable.
Advantages of using Groww’s online EMI calculator
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.
- Our servers store your data securely.
- Our calculator is free for unlimited use once you register with us.
- The online car loan EMI calculator is easy to use and accurate.
- You save your time and money by applying for the most easily repayable loans via our website.
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.
Also, check the FAQ section on our car loan EMI calculator here.
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Frequently Asked Questions
- How much time does it take to use the calculator?
If you have the details with you (total amount, interest levied and tenure), it takes only a few minutes.
- Can I avail a car loan to buy a used vehicle?
Yes, almost all major financial institutions provide loans for used vehicles. However, ensure that the used model comes with the necessary documentation.
- What is the typical tenure of a car loan in India?
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.
- Do I need a co-guarantor for a car loan?
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.
- Can my car loan application be rejected?
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.