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Car Loan EMI Calculator – HDFC Bank, Axis, SBI, ICICI Bank, Kotak, All Banks

Last Updated 30th Apr 2017

Car loan EMI Calculator India

  • Loan amount - Higher the loan amount, higher will be the EMI.
  • Rate of interest -Lower the interest rate, lower the EMI.
  • Work profile -Employees of large companies get lower rates leading to lower EMI
  • CIBIL Score -High CIBIL Score helps in getting lower rates on car loans.
  • Loan Tenure -Longer the loan tenure, lower the EMI.
Car Loan EMI Calculator
Rs.

Lowest Car Loan EMI per Lakh Apr 2017

Bank Lowest EMI per Rs. one lakh, Tenure New Car Lowest EMI per Rs. one lakh, Tenure Used Car
Andhra Bank Rs. 1,619 for 7 years Rs. 2,086 for 7 years Explore More Apply Now
Axis Bank Rs. 1,712 for 7 years Rs. 0 for 7 years Explore More Apply Now
Bank of Baroda Rs. 1,647 for 7 years Rs. 3,248 for 7 years Explore More Apply Now
Bank of India Rs. 1,627 for 7 years Rs. 3,196 for 7 years Explore More Apply Now
Bank of Maharashtra Rs. 1,619 for 7 years Rs. 2,110 for 7 years Explore More Apply Now
Central Bank of India Rs. 1,604 for 7 years Rs. 2,125 for 7 years Explore More Apply Now
Corporation Bank Rs. 1,617 for 7 years Rs. 0 for 7 years Explore More Apply Now
Federal Bank Rs. 1,656 for 7 years Rs. 2,182 for 7 years Explore More Apply Now
HDFC Bank Rs. 1,622 for 7 years Rs. 2,237 for 7 years Explore More Apply Now
ICICI Bank Rs. 1,699 for 7 years Rs. 2,405 for 7 years Explore More Apply Now
IDBI Bank Rs. 1,658 for 7 years Rs. 0 for 7 years Explore More Apply Now
Indian Bank Rs. 1,658 for 7 years Rs. 2,270 for 7 years Explore More Apply Now
IndusInd Bank Rs. 2,157 for 5 years Rs. 0 for 5 years Explore More Apply Now
Karnataka Bank Rs. 2,137 for 5 years Rs. 3,440 for 5 years Explore More Apply Now
Kotak Bank Rs. 2,199 for 5 years Rs. 2,485 for 5 years Explore More Apply Now
OBC Rs. 1,655 for 7 years Rs. 3,341 for 7 years Explore More Apply Now
PNB Rs. 1,640 for 7 years Rs. 2,184 for 7 years Explore More Apply Now
SBI Rs. 1,640 for 7 years Rs. 1,822 for 7 years Explore More Apply Now
Tamilnad Mercantile Bank Rs. 2,189 for 5 years Rs. 2,212 for 5 years Explore More Apply Now
Union Bank of India Rs. 1,609 for 7 years Rs. 2,224 for 7 years Explore More Apply Now
United Bank of India Rs. 1,627 for 7 years Rs. 0 for 7 years Explore More Apply Now

Car Loan Calculator

EMI on Car loan

  • The monthly amount calculated by the EMI calculator for car loan is the fixed money you pay to the bank towards payment of principal and interest.
  • For a car loan at 9.50% interest rate, the EMI per Rs. one lakh loan amount is as below:
Loan Tenure 2 years 3 years 5 years
EMI amount for loan amount Rs. 1 lakh at 9.50% Rs. 4,591 Rs. 3,203 Rs. 2,100
Total amount you pay back to the bank including principal and interest Rs. 110,195 Rs. 115,318 Rs. 126,011
Interest you have to pay over loan tenure Rs. 10,195 Rs. 15,318 Rs. 26,011

Car Loan EMI Calculator Formula

Apart from online car loan calculator, you can also calculate your monthly EMI with a mathematical formula. The formula to calculate car loan EMI is
Emi Calculator Formula

P represents the principal amount that you want to apply for
r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
n is the tenure of loan in months

Car Loan Interest Calculator – Impact on EMI

Flat rate method Vs reducing balance method Vs Zero Interest Scheme
Your loan EMI will be higher in case of loan on flat rate while EMI will be lower with reducing rate.

Flat interest rate: Here the interest is calculated on the original principal amount for the entire period. So, if you opt for a car loan of Rs. 5 lakhs at 10% flat rate of interest for a period of 5 years, the EMI will be Rs. 12,500. Here, the total interest per year will be 500,000* (10/100) = 50,000. Thus, total interest in 5 years = 50,000 * 5 = 250,000. This interest along with principal amount is distributed over the entire loan period to arrive at monthly EMI. Here the impact of repayment of capital is not considered.

Reducing balance method: In this method, the interest rate is charged only on the outstanding amount of the loan. Generally in this case the interest rate is higher than the flat rate but actually it may turn out to be cheaper as the interest is paid only on the remaining principal amount. Every month some part of EMI goes towards principal amount, thus the interest is charged on the remaining amount. Hence there will be a gradual reduction of the principal amount and as a result of the same interest will be applicable on the lesser amount. So, if you opt for a car loan of Rs. 5 lakhs at 10% rate of interest for a period of 5 years, the EMI will be Rs. 10,624.

Zero interest schemes (also called 0% finance scheme) – This is one of those free lunches that actually doesn’t exist. So, beware of schemes that claim to offer zero interest. It is likely that the car company is offering a subvention scheme whereby the interest is paid by it to the bank upfront. Now, you could always ask the car dealer for the same amount as a cash discount. It’s like padding up the price of the car for the interest amount and marketing it under a nice name.

Car Loan EMI - Modes of Payment

  • The most convenient way of paying a car loan EMI is by way of ECS mandate in favor of the bank from whom the car loan has been availed
  • Note that it is not necessary to hold a bank account with the same bank. One can issue an ECS mandate from one’s salary account or normal bank account
  • Key benefit of paying EMI through ECS is that there is no risk of cheque bouncing due to signature mismatch or any technical issue
  • Other modes can include post dated cheques and payments by demand drafts, though these are rarely used nowadays

Frequently Asked Questions on EMI Calculator Car Loan

What if I miss EMI payment or there is an ECS bounce?

If you miss your EMI payment or if there is an ECS bounce then bank may charge a penalty. In addition, it will also be reflected in your CIBIL report and your CIBIL score may get impacted.

What if I get delay in paying the car loan EMI?

Banks charges penalty for delaying EMI payment. The amount of penalty varies from bank to bank.

Why it is necessary to calculate EMI beforehand?

It is important to calculate your EMI in advance to maintain stability in future payments. When you avail car loan, you promise the bank to pay a fixed amount at fixed date every month. So, before availing the loan you should consider the stability of your income, monthly expenses and the existing loan obligations to avoid any discrepancies in future payments.

Does the loan tenure affect my EMI for car loan?

Car loan can be availed for maximum tenure of 7 years. Tenure affects your monthly EMI. Longer the tenure of car loan, lower will be your EMI.

How MyLoanCare EMI calculator helps in calculating EMI?

MyLoanCare Car Loan EMI calculator calculates the EMIs of different banks as per the details entered by you. You can easily compare the EMIs and opt for the best option. You also get to know about the interest charged on loan amount entered.

What are two methods of paying car loan EMI? Which one is better?

Car loan EMI can be paid under two schemes:

  • EMI in arrears scheme – this is the standard method of paying EMI where the interest for a month (and principal repayment) is payable at or after the end of the month.
  • Advance EMI scheme – you pay interest and EMI at the beginning of the month. So, each month, you pay interest on amount that you have already repaid to the bank at the beginning of the month.

Note - In case your bank charges EMI in advance, the EMI amount should be about 1% lower than that in case of EMI in arrears. For those interested in more precise figures, EMI per Rs. one lakh loan amount on a 60 month car loan at 10% rate of interest as per EMI in arrears method comes to Rs. 2,125 while that as per EMI in advance method comes to Rs. 2,107.

Why MyLoanCare???

Nowadays, banks give various offers on to give the best rates to individuals. To get with lowest interest rate and lowest EMI, compare new rates and offers of all banks at MyLoanCare. You can do rates comparison, check your eligibility, apply online and get the cheapest rate on . MyLoanCare helps you throughout the loan process from the day you apply to the time you get complete disbursement. You can even track your loan status after getting registered with us. MyLoanCare make it easy for you to get hassle free with ultimate cashback and refer and earn benefits. So, apply for today and enjoy the benefits.

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