It is very easy to calculate the EMI for your car loan. Simply key in the amount, rate and tenure, the Car Loan EMI Calculator will automatically reflect the approximate EMI’s applicable for the loan tenure. You can use it any number of times for free. You can also input varying combinations of the loan amount, loan tenure, and interest rates to get revised results. Processing fees may be applicable additional to the Amount Shown here.
Equated Monthly Installment - EMI for short - is the amount payable every month to the bank until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate.
Prior to this, one should know that there are many other factors upon which the Amount of Car Loan granted can vary for a particular case. For instance, Category (Salaried, Self- Employed Professional or a Businessman, women), Income Slabs, Age group, Tenure of Loan, New or used cars, Car loan scheme, Car loan applicant, Account with the Bank, etc.
Furthermore, the loan eligibility will also be dependent on the value of the car selected by you.
One very Important Point to Remember while taking a Auto Loan, skipping EMIs does not reflect well on your creditworthiness and could impact your credit score. Hence, in the interest of your financial wellbeing, borrow wisely and as far as possible do not skip your repayment. Foreclosure of the Auto loan, i.e. paying all the outstanding dues of your Car Loan, is also possible by submitting a foreclosure request to the bank. Foreclosure again is subject to charges.