# Car Loan EMI Calculator

Struggling to budget for your dream car? A **Car Loan EMI Calculator** can help! It considers how much you borrow, the interest rate, and how long you’ll repay to estimate your monthly payment (EMI). This way, you can see if the car fits your budget before you commit to a loan.

**Did you know?**Bank car loans in India saw a huge jump in recent years, growing by over 137%! This suggests a strong demand for car ownership.

^{1}According to RBI Car loan Growth

**Website**: Economics Times

**Category**: News

## How Can Vehicle Loan EMI Calculator Help Me Buy A Car in India?

Buying a car in India is exciting, but budgeting for it can be tricky. Here’s where your new best friend, the Auto Loan EMI Calculator India, comes in!

### Top 7 Benefits:

**Budget Champ:**Enter how much you want to borrow (loan amount), the interest rate, and how long you plan to repay (loan tenure). The calculator gives you an estimated monthly payment (EMI). This helps you see if the car fits your budget before you even apply for a loan!**Find Your Perfect Fit:**Play around with different loan amounts and repayment times to see how they affect your EMI. This way, you can find a loan that feels comfortable for your monthly finances.**Compare & Conquer:**Considering loans from different lenders? The calculator helps you compare various options based on their interest rates and repayment terms. Choose the one that gives you the most affordable EMI.**Financial Roadmap:**Get a clear picture of your monthly cash outflow for the car loan. This helps you plan your finances better and avoid any surprises down the road.**Decision Ninja:**With a good understanding of affordable EMIs, you can confidently choose a car and loan that aligns with your financial goals. No more car-buying confusion!**Confidence Booster:**The car loan EMI India Calculator empowers you with knowledge, making your car-buying journey smoother and less stressful.

### A few Drawbacks to Consider:

**Estimates:**The calculations are based on estimates and might not be exact. Interest rates can change, so the final EMI might differ slightly.**Hidden Costs:**The Auto EMI calculator might not include additional costs like car insurance and loan processing fees. Factor these in when planning your budget.**Limited Scope:**Some calculators may not consider all factors influencing loan payments, like down payments or prepayment options.**Not Live:**Changes in interest rates or loan terms might not be reflected immediately in the calculator’s results.**Varied Results:**Different calculators might provide slightly different results due to their underlying algorithms.

## Car Loan Interest Rates in India List

In India, purchasing a car is a significant financial decision. Securing a car loan can help make this dream a reality, but it’s crucial to understand the interest rates offered by different banks. Here’s a comprehensive breakdown of estimated car loan interest rates from some of India’s most popular banks:

### Public Sector Banks:

**State Bank of India (SBI):**SBI, the largest public sector bank, offers competitive car loan interest rates ranging from**7.75% to 8.20%**.**Punjab National Bank (PNB):**PNB provides car loans with interest rates between**7.90% and 8.50%**, depending on your creditworthiness and loan specifics.

### Private Sector Banks:

**HDFC Bank:**A leading private sector bank, HDFC offers car loans at rates starting from**7.75% and reaching 9.30%**.**ICICI Bank:**ICICI Bank’s car loan interest rates typically fall within the range of**7.90% to 8.45%**.**Axis Bank:**Axis Bank’s car loan interest rates have a wider range, starting from**8.40% and potentially reaching 11.50%**. This variation depends heavily on your credit profile and loan terms.**Kotak Mahindra Bank:**Kotak Mahindra Bank is known for its attractive car loan interest rates, ranging from a low**7.50% to 7.75%**.

### Note:

**These rates are estimates:**The actual car loan interest rate you receive will depend on your credit score, loan amount, loan tenure (repayment period), and the bank’s specific policies.**Always check with the bank:**It’s essential to get a personalized quote from each bank you’re considering to determine your situation’s most accurate interest rate.**Beyond interest rates:**While interest rates are crucial, consider other loan factors like processing fees, prepayment penalties, and loan flexibility when making your final decision.

## How to Calculate Car Loan EMI By Online Calculator

**Find Your Calculator:**Head to a website like Pricemint and navigate to their Car Loan EMI Calculator page.**Car Price:**Enter the total price of your dream car, including on-road prices and any additional fees.**Down Payment (Optional):**If you’re planning a down payment, enter that amount in the dedicated field. This reduces your loan amount.**Loan Amount:**This is the money you need to borrow from the bank. Enter this amount in the “Loan Amount” field.**Interest Rate:**Find out the interest rate offered by the lender and enter it in the “Interest Rate” field. This is a yearly percentage rate that affects your total loan cost.**Loan Tenure:**This is how long you’ll take to repay the loan, typically in months. Enter your desired loan tenure in the “Loan Tenure” field.**Calculate!**Click the “Calculate” button. The calculator will show your monthly EMI payment (Easy Monthly Installment), along with the total interest you’ll pay and the total amount you’ll repay over the loan term.**Play Around:**Want to see how different loan options affect your EMI? Adjust the loan amount, interest rate, and loan tenure to see how it changes your monthly payment. This helps you find the best fit for your budget.

**Bonus Tip:** Some calculators, like Pricemint’s, offer additional features like charts, monthly summaries, and even a print button! This allows you to visualize your loan details and easily share them if needed.

## How to Calculate Car Loan EMI Manually (Formula)

Want to calculate your car loan EMI yourself in India? Here’s a breakdown of the steps involved:

### 1. Monthly Interest Rate

Banks typically charge annual interest rates on loans. To use the formula, we need a monthly interest rate. Divide the annual rate by 12.

For example, if Akhil’s loan has a 9% annual interest rate, his monthly interest rate (R) would be 9% / 12 = 0.75% (or 0.0075 as a decimal).

### 2. Loan Tenure in Months

Loan terms are usually given in years. To use the formula, we need the total number of months (N). Multiply the number of years by 12.

For Akhil’s 5-year loan tenure, the total loan tenure in months (N) would be 5 years x 12 months/year = 60 months.

### 3. The Magic Formula

Now comes the key part – the EMI formula! It considers the loan amount (P), monthly interest rate (R), and loan tenure (N) to calculate the EMI amount.

**calculate car loan EMI** **Formula:** EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

**In Akhil’s case:**

P = Rs. 5,00,000 (loan amount)

R = 0.0075 (monthly interest rate)

N = 60 months (loan tenure in months)

**Fill in the values** in the formula to find Akhil’s monthly EMI.

## What is an Amortization Schedule?

Think of it as a detailed roadmap of your loan repayment. It breaks down your monthly payments (EMIs) into two parts:

**Principal:**The actual amount you borrowed for the car.**Interest:**The fee you pay for borrowing the money.

The amortization schedule shows how much of each EMI goes towards the principal and how much goes towards interest over the entire loan term. This helps you visualize how your loan progresses and how much you’ll owe over time.

### Understanding the Table:

**Month:**This shows the corresponding month of your loan repayment.**Beginning Balance:**This is the remaining loan amount you owe at the start of each month.**EMI Payment:**This is your fixed monthly instalment.**Principal:**This is the portion of your EMI that goes towards paying off the actual loan amount. As you pay more, the principal amount increases.**Interest:**This is the portion of your EMI that goes towards the interest on the loan. Initially, the interest amount is higher, but it decreases as you pay down the principal.**Ending Balance:**This is the remaining loan amount you owe after making the monthly EMI payment.

### Benefits of Understanding the Amortization Schedule:

**Clear Picture:**It provides a transparent breakdown of your loan repayment, helping you track your progress.**Budgeting Tool:**You can see how much of your payment goes towards the principal, allowing for better budgeting.**Prepayment Planning:**If you plan to prepay your loan, the schedule helps you calculate how much extra you need to pay to reduce the principal significantly.

### Example Amortization Table for a Tata Car Loan:

Let’s say you take a Rs. 5,00,000 loan for your Tata car at an annual interest rate of 10% for 5 years (60 months). Here’s a simplified example of an amortization table for the first few months:

Month | Beginning Balance (Rs.) | EMI Payment (Rs.) | Principal (Rs.) | Interest (Rs.) | Ending Balance (Rs.) |
---|---|---|---|---|---|

1 | 5,00,000 | 11,355 | 4,167 | 7,188 | 4,95,833 |

2 | 4,95,833 | 11,355 | 4,222 | 7,133 | 4,91,611 |

3 | 4,91,611 | 11,355 | 4,278 | 7,077 | 4,87,333 |

4 | 4,87,333 | 11,355 | 4,335 | 7,020 | 4,83,000 |

5 | 4,83,000 | 11,355 | 4,392 | 6,963 | 4,78,608 |

6 | 4,78,608 | 11,355 | 4,450 | 6,905 | 4,74,158 |

7 | 4,74,158 | 11,355 | 4,508 | 6,847 | 4,69,650 |

… | … | … | … | … | … |

58 | 400,222 | 11,355 | 10,133 | 1,222 | 390,089 |

59 | 390,089 | 11,355 | 10,201 | 1,154 | 380, |

## Article References

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