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IDBI Bank Car Loan EMI Calculator

IDBI Bank Car Loan Calculator India 2021

Last Updated 19th Jul 2021

  • Get monthly EMI as low as ₹ 1,534 per lakh with IDBI Bank now offering vehicle loans with loan tenure upto 7 years.
  • Lowest car loan interest rate currently offered by IDBI Bank is 7.50%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,500 for a 2 year loan and ₹ 2,004 for a 5 year loan.
Loan Amount2 Year Loan4 Year loan7 Year loan
₹ 3 Lakh₹ 13,500₹ 7,254₹ 4,601
₹ 6 Lakh₹ 27,000₹ 14,507₹ 9,203
₹ 12 Lakh₹ 54,000₹ 29,015₹ 18,406
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Car Loan EMI Calculator IDBI Bank

IDBI Bank Car Loan EMI

  • Car loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IDBI Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With IDBI Bank offering vehicle loans with loan tenure upto 7 years, the loan EMI can be as low as ₹ 1,534 per lakh, to make it more affordable and convenient to meet your car needs. Rate of interest offered by IDBI Bank are as low as 7.50%.

The EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Features of IDBI Bank Car Loan

  • Borrower age should be between 18 years to maximum 70 years.
  • Maximum vehicle loan amount offered by IDBI Bank is upto 90% of ex-showroom price.
  • Interest rates starts @ 7.50% depending upon down payment, net income and other factors.
  • Processing fee in IDBI Bank is Minimum ₹ 2,500 and Maximum ₹ 2,500.

Car Loan EMI Calculator IDBI Bank at different tenure

Car Loan EMI for different loan amounts and tenures @ 7.50% interest rate
Loan Amount 2 Years 3 Years 5 Years 7 Years
1 Lakh₹ 4,500₹ 3,111₹ 2,004₹ 1,534
3 Lakh₹ 13,500₹ 9,332₹ 6,011₹ 4,601
5 Lakh₹ 22,500₹ 15,553₹ 10,019₹ 7,669
10 Lakh₹ 45,000₹ 31,106₹ 20,038₹ 15,338
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

Use EMI Calculator to calculate your interest on vehicle loan at different tenure

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 7.50% interest rate offered by IDBI Bank for different tenures
2 years 3 years 5 years
IDBI Bank EMI for a loan amount ₹ 1 Lakh at 7.50% ₹ 4,500 ₹ 3,111 ₹ 2,004
Total amount you pay back to the bank including principal and interest ₹ 1,07,999 ₹ 1,11,982 ₹ 1,20,227
Interest you have to pay over loan tenure ₹ 7,999 ₹ 11,982 ₹ 20,227

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a ₹ 1,00,000 loan for a period of 5 years, you pay the lowest EMI of ₹ 2,004. However, you pay an interest of ₹ 20,227 on a ₹ 1,00,000 loan.

In contrast, if you take a ₹ 1,00,000 loan from IDBI Bank at the lowest loan rate offered for a period of 2 years, you pay a higher vehicle loan EMI of ₹ 4,500 and pay an interest of only ₹ 7,999 which is less than half of what you paid in 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting IDBI Bank Car Loan EMI

  • Loan amount – This is the amount borrowed by a borrower from IDBI Bank. If you apply for a higher loan amount, your monthly EMI will be high. IDBI Bank gives maximum loan of 90% of ex-showroom price of the car.
  • Interest rate - Interest rates is the rate charged by IDBI Bank on your vehicle loan. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by IDBI Bank is 7.50%. However, it is advisable to do complete market research and compare rates online before you apply for loan.
  • Loan tenure – This is the period in which you can repay your loan in IDBI Bank. Longer loan tenure means lower car loan EMI. Generally, IDBI Bank offers loan for a maximum tenure of 7 years.

IDBI Bank Car Loan Calculator Formula

Emi Calculator Formula

Where,

  • 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
  • E represents the monthly payment or EMI

Here is an illustration of how IDBI Bank Car Loan EMI is calculated:

Let’s say you take out a car loan for ₹ 7,00,000 to be paid back over five years (or 60 months) at an interest rate of 10%. Your monthly payments for this loan after applying the above formula would be ₹ 14,873.

In above formula,

P = loan amount. This should be 90% of ex-showroom price

n = tenure in months. For IDBI Bank, this can be 7 years.

r = rate of interest per annum. Current IDBI Bank interest on car loan is 7.50%

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your IDBI Bank car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. IDBI Bank provides an LTV upto 90 % of ex-showroom price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, IDBI Bank would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – IDBI Bank calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – IDBI Bank will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. IDBI Bank's assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

Quick guide on IDBI Bank Car Loan

  • Key Features
    • Loan available for both salaried and self employed.
    • Borrowers within the age group of 18 and 70 years.
    • Maximum loan tenure of 7 years.
    • Interest rates in the range of 7.50% to 8.10%.
    • Lowest EMI of ₹ 1,534 per lakh.
  • IDBI Bank vehicle loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is levied. Prepayment in IDBI Bank is No prepayment allowed for 6 months; 1% foreclosure. When you prepay, the outstanding balance on your vehicle loan reduces. IDBI Bank gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This option allows you to close your loan earlier and save the interest outgo associated with the remaining tenure. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option allows you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would want to reduce their monthly EMI obligations.

FAQs

Why should I calculate IDBI Bank loan EMI before taking a loan?

It is advised to calculate vehicle loan EMI prior to taking a loan. There are several benefits of calculating your IDBI Bank housing loan EMI as discussed below-

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
  • If you already know the EMI you have to pay each month, then you can plan your spending accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your car loan in future when you have surplus amount.

What is the lowest EMI per lakh offered by IDBI Bank on Car loan?

IDBI Bank offers car loan at 7.50% interest rate and hence lowest EMI on per lakh loan amount is ₹ 1,591

Can I prepay my IDBI Bank car loan?

IDBI Bank offers you an option of prepayment at No prepayment allowed for 6 months; 1% foreclosure charges.

Is there any processing charge on car loan from IDBI Bank?

Car Loan from IDBI Bank charges a processing fee of Minimum.₹ 2,500and Maximum ₹ 2,500

Will I get the car loan from IDBI Bank if I have a bad credit score?

No, for taking a loan from IDBI Bank, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have low credit score.

How does a car loan repayment happen?

The repayment of a car loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

Can I have a co-applicant while applying for a Car loan with IDBI Bank?

Yes, you can opt for a co-applicant to take car loan from IDBI Bank that will increase your car loan eligibility as the income of the co-applicant is also taken into account.


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IDBI Car Loan News - Jul 2021
  • 2021-01-15 : IDBI Bank reported Rs 378-crore profit
    IDBI Bank posted a net profit of Rs 378 crore for the December quarter. The loans which includes home, LAP, personal, car, two-wheeler, gold, education and doctor loan along with business and mudra loans fell 7% to Rs 1.6 lakh crore (y-o-y) in December 2020. The bank’s total deposits which includes fixed and recurring deposits rose 2.85% y-o-y to Rs 2.24 lakh crore at the end of December 2020. In addition to this, CASA improved to 48.97% as on December 31, 2020.
  • 2020-07-28 : IDBI Bank reported Q1 net profit of ₹144 crore
    IDBI Bank reported Rs 144 crore net profit for June quarter on account of a reversal of Rs 1335 crore of bad loan provisioning. It is IDBI second successive net profit after 13 consecutive quarters of loss. CASA increased to ₹ 1,04,315 crore and cost of deposit which includes fixed and recurring deposits improved by 64 bps to 4.65%. In addition to this, NII bolstered by home, personal, gold, car and two-wheeler loan along with business and mudra loans stood at ₹ 1,773 crores.
  • 2018-08-13 : IDBI Bank revises MCLR for August
    IDBI Bank has revised MCLR for the month of August by upto 10 basis points. The rates continue to be in the range of 8.00% to 8.90%. The new rates for Six months MCLR is now at 8.60% and that of one year is 8.85%. The new rates are effective from August 12, 2018.
  • 2018-07-12 : IDBI Bank revises Floating Car loan rates
    IDBI Bank has revised its floating Interest Rate on Car loan. The new rate for Car loan is now 8.90%. The new rates are effective from June 18, 2018. There is no change in the processing fees.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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