Due to various car loan options given by multiple banks, it is much easier to acquire your ideal car nowadays. Car loans are available with low interest rates and up to an 8-year repayment period. You can easily find out the lowest car loan interest rate with the help of a car loan EMI calculator.
A Car Loan EMI Calculator or some people also call it a car loan down payment calculator, is available on a variety of banks and third-party websites. It helps you calculate the Equated Monthly Instalments (EMIs) that should be paid. EMI Calculator is simple to use. Basic information such as the repayment term, principal amount, and interest rate must be provided to calculate the EMI.
|Total Interest Due||Rs.1,37,411|
|Total Amount Payable||Rs.6,37,411|
The total loan amount will be decreased by Rs.32,505, and the loan term will be reduced by seven months.
If prepayment is not made
EMI: Rs.1,37,411 Interest duration: 5 years
If prepayment is made:
EMI: Rs.1,09,906 Interest Duration: 4 years and 5 months
The Car Loan EMI calculator can help you figure out how much you'll have to pay each month on your car loan. The EMI Calculator will calculate your monthly payments as well as give you a complete loan repayment table that includes information such as the principal and interest amount being paid, and the outstanding balance after each installment is paid.
At the end of each year, the calculator tells the unpaid balance.
E = P x R x (1+R)n / (1+R)n – 1 E = P x R x (1+R)n / (1+R)n – 1
where ‘E' denotes the amount of EMI you owe,
‘P' refers to the principal.
‘R' stands for the interest rate on your car loan.
‘n' denotes the length of the car loan (in months)
Car loans are available with both fixed and fluctuating interest rates. The fixed rate will remain constant during the loan's term, but the floating rate may vary at any time. Interest rates are affected by a variety of factors, including relevant taxes, inflation, liquidity, and so on.
For example, if you take out Rs.5 lakh car loan with a 10% p.a. interest rate over three years, the monthly interest will be Rs.16,134. This is the total amount due throughout of the loan.
Assume you've taken out a 5 lakh car loan with a three-year repayment period. Because the interest rate for a year is 10%, the EMI payment is Rs.16,134 in the case above. You will have an unpaid balance of Rs.3,36,409 at the end of the year. The interest rate on your auto loan at the time was changed to 8%. As a result, the EMI payment for the remainder of the term will be Rs.15,215.
Note that, based on market developments, the interest rate may rise or fall over the loan term.
|Name of the bank||HDFC Bank||Axis Bank|
|Processing fee||1% of the loan amount. The maximum and minimum amounts that can be charged are Rs.5,000 and Rs.10,000, respectively.||Rs.3,500 to Rs.5,500|
|Documentation||Rs.700||Rs.500 per instance|
|Foreclosure charges||3% - 6% depending on the amount of time completed*||5% of the principal outstanding|
|Loan cancellation||As mentioned by the bank||Rs.2,500 per instance|
|Penal interest||2% per month||2% per month|
Note that GST rates will be applied in addition to the above-mentioned rates.
*Foreclosure by HDFC Bank is not permitted within six months from the date the car loan was taken out.
|Name of the bank||Name of the bank||Name of the bank||Name of the bank|
|Axis Bank||HDFC||State Bank Of India||ICICI|
|Kotak Mahindra||Canara Bank||Central Bank of India||PNB|
|Union Bank of India||IOB||Federal Bank||Indian Bank|
|South Indian Bank||Bank of Baroda||Corporation Bank||IndusInd Bank|