| Monthly EMI | ₹2,174 |
| Principal amount | ₹1,00,000 |
| Total interest | ₹30,455 |
| Total payment | ₹1,30,455 |
Buying a car is one of the big financial decisions. With a car loan, you don't have to worry about paying the full amount in one go. Car loans are designed to distribute the price of a car over a certain period. It helps individuals to make manageable repayments in monthly instalments. Before availing a car loan, it's required to understand the EMIs, total interest payable and total amount you are going to pay. We have an easy-to-use Car Loan EMI calculator where you can enter the loan amount, interest rate and tenure and explore the speedy results.
The EMI for the car loan can be calculated as follows:
Where:
Assume you are going to take a car loan of 10 lakh rupees that you borrow for 60 months (5 years), at an annual interest of 7%.
Using the EMI formula:
Therefore, your monthly EMI will be approximately ₹ 19,801.
Within the tenure of 5 years, the amount of interest paid will be ₹ 1,88,072 and the amount of total payment (principle + interest) would be ₹ 11,88,072.
| Details | Amount |
|---|---|
| Loan Amount (Principal) | ₹10,00,000 |
| EMI | ₹19,801 |
| Total Interest | ₹1,88,072 |
| Total Payment (Principal + Interest) | ₹11,88,072 |
Using our Car Loan EMI Calculator, you can easily calculate your monthly payments and get a clear picture of the total interest and repayment amount.
If you want to take a personal loan, explore our Personal Loan EMI Calculator which lets you understand the monthly EMI, total interest payable, total payment along with the monthly breakdowns.
Similar, you can use a Home Loan EMI Calculator when planning to buy a house or even if you wish to re-finance your current home loan. This EMI calculator also offers the provision of adding prepayments so that the interest burden of the loan is decreased along with the loan tenure getting reduced, making this very useful for homeowners for the reduction of interest costs.
The age range for a car loan is between 21 to 60 years. Most of the lender requires at least 21 year old applicant, thereby ensuring that the loan is repaid before the age of 60, while the specific terms can differ from lender to lender.
The formula E= P* R* (1+R)^n/[(1+R)^n -1] is used to calculate the car loan, where E represents the EMI, P represents the loan amount or principal, R represents monthly interest rate, and n represents number of months of the loan.
Most Indian banks ask for a minimum monthly salary to be around ₹20,000 to ₹2.4 lakh annually to be eligible for a car loan. However, it depends on the car model, the policies of a bank, and the applicant's credit score.
You can easily determine the monthly car loan EMI using our Car Loan EMI Calculator. Enter the loan amount and interest rate along with the term in years to obtain an instantaneous computation of your monthly payments for proper planning of your financial needs.
It depends on your finances. In general, shorter loan terms of 3 to 5 years are better because you pay less interest overall. However, you can get longer terms up to 7 years that can give you lower monthly payments but raise the total interest you will pay.
Yes, you can pay off a car loan early, but the lender will probably charge you a prepayment fee depending on your loan agreement. Always review your loan agreement for such charges and pay off the loan ahead of schedule to save on interest.