https://www.airtel.in/finance/emi-calculator/car-loan-calculator

FAQs on Car Loan
EMI Calculator

What is a car loan EMI calculator?

A car loan EMI (Equated Monthly Instalment) calculator is a tool that helps you understand how much EMI you need to pay per month for the car loan you have taken. The amount calculated includes loan amount along with interest. To use the calculator, you need to input the loan amount that you need to take, interest rate at which the loan amount will be disbursed, and loan tenure.

How does a car loan EMI calculator work?

Every EMI loan calculator works on a specific mathematical formula with the help of loan interest rate, principal loan amount, and the duration for which you would be taking the loan. You need to fill in the details and the calculator would then use the formula to render the estimated amount that you need to pay every month to the lender or the bank.

What information do I need to use a car loan EMI calculator?

Using a car loan EMI calculator is quite easy. In order to do it, you would need the following things:

The loan amount that you wish to borrow to purchase your car
The internet rate charged on the loan amount
Loan period which could be in months or years

What is the use of an online Car loan EMI calculator?

If you are planning to take a car loan and you are doubtful about how much you would be paying every month, then you can use the internet and seek help from an online car loan EMI calculator. This calculator would provide you an estimated amount that you need to pay every month on the loan. You can also use the calculator to compare different loan options. Consequently, you would be able to make the decision of buying a car.

Can a car loan EMI calculator give me an accurate estimate of my monthly payments?

Of course, a car loan EMI calculator uses a specific mathematical formula and hence, it can give you an accurate estimate of your monthly payment. You just need to input the loan amount, loan tenure, and loan interest rate to get the estimated amount. However, there might be a little difference in monthly amount due to several factors like the loan processing fee and prepayment charges.

Is using a car loan EMI calculator free?

Of course, there are dozens of websites on the internet where you can use a car loan EMI calculator without paying any amount. Most banks and financial websites offer this tool to their customers for free so that they are aware of how much they need to pay every month for their car loan.

Can I change the loan amount and tenure in the car loan EMI calculator?

Yes, you can change the loan amount and tenure in a car loan EMI calculator to see how it affects your monthly payments. Most calculators have sections where you can input the loan amount and tenure in months or years. You can adjust these values to find a loan option that fits your budget and helps you make informed decisions about your car loan.

Can I use a car loan EMI calculator for a used car loan?

Yes, you can use a car loan EMI calculator for a used car loan as well. These calculators work the same for used cars as they do for new cars. All you need to do is provide the tool with car loan tenure, car loan amount, and the interest rate. Also, keep in mind that several banks offer higher interest rates for used cars.

Can a car loan EMI calculator help me decide on the right loan amount and tenure?

It’s a known fact that a car loan EMI calculator helps you decide on the right loan amount and tenure. As it will provide you with estimated monthly payment, you would be able to decide how much loan you can afford to take. Depending on that, you can either adjust your loan amount or loan tenure to meet your requirements.

Is the car loan EMI amount fixed?

If the interest remains fixed throughout the loan tenure, then your car loan EMI would also remain fixed. However, it may be different for the first month as you would also need to pay loan disbursal charges and other such amounts. In case, you are doing prepayment or part payment, then also your car loan EMI may change.

Can I get 100% funding to buy a car?

Yes, there are several ways that allow you to get 100% funding on buying a car. Most banks and financial institutions usually offer 100% funding to pre-approved customers. However, if you are a non-approved customer, you must have a high CIBIL score, high stable income, and good credit history to meet the requirements. HDFC banks and Axis banks are some of the popular banks that offer 100% on-road funding for cars.

What is the down payment for car Loan EMI?

While buying a car, you are often required to pay some upfront money by the car dealer and this amount is called down payment. It is usually 10-15% of the on-road price of the car and is paid directly to the dealer before taking delivery of the car. The higher the down payment, the lower would be your monthly payment on the car.

Are the results from a Car Loan EMI calculator binding?

No, the results from a Car Loan EMI calculator are not binding. The calculator provides an estimate of your monthly EMI payment based on the inputs you provide, such as the loan amount, interest rate, and the loan tenure. However, the actual EMI payment may vary a bit, due to factors such as processing fees, pre-payment charges, etc.

Can I use a Car Loan EMI calculator for other types of loans?

Though a Car Loan EMI calculator is specifically designed to provide you with the Equated Monthly Instalment of a Car Loan, it can be used to calculate other types of loans such as Home Loan, Personal Loan, etc. It is because the fundamental formula that calculates the EMI amount depends totally on interest rate, loan tenure, and loan amount, which you can adjust in the Car Loan calculator easily.

Can I use a Car Loan calculator to compare different loan options?

Yes, you can use a Car Loan calculator to compare different loan options. Just fill in the loan tenure, loan amount, and interest rate and you would get to know how much EMI amount you need to pay on different loans per month. This certainly helps customers make an informed decision about taking the car loan.

Do I need to have a specific bank or lender in mind to use a Car Loan calculator?

Well, not necessary! To calculate monthly EMI on your car loan, you just need to input loan amount, loan tenure, and interest rate in the calculator. However, if you are aware of the interest rate that a specific bank is giving its customers, then you would be able to get a more accurate monthly amount on your Car Loan.

How does EMI calculation help in planning the car purchase?

EMI calculation helps in planning the car purchase as when you get the idea of how much you need to pay every month towards your Car Loan, you can manage your monthly expenses better. You would be then able to manage finances of your house and check whether you are comfortable in paying the estimated EMI calculated.

How can I reduce Car Loan EMI?

If you think the EMI amount that you need to pay every month towards your Car Loan doesn’t suit your budget, then you must resort to the following ways to reduce it:

Increase down payment on your car so that the EMI amount gets decreased
Prepay some loan amount whenever you have enough money
Go for a longer loan tenure, though it would increase the total interest paid on the loan
Check for banks or financial institutions that offer lower interest rates.

What is the lowest EMI that I need to pay for a Car Loan?

The EMI amount that you need to pay towards your Car Loan entirely depends on the interest rate, loan tenure and loan amount. Lower the interest rate and loan amount and higher the loan tenure, the lesser is your monthly EMI. So, there is nothing such as the lowest EMI that you need, to pay a Car Loan. Regardless, you can use a car loan EMI calculator to get the estimated monthly amount you would need to pay on your loan.

What is the car Loan EMI for ₹1 lakhs?

The car loan EMI for ₹1 Lakh depends upon the interest rate and loan tenure. However, let’s assume the interest rate is 10% and the loan tenure is 5 years, then using the car loan EMI calculator, your monthly EMI would be ₹2125. If the rate of interest is lower, then the EMI amount will be less than ₹2125.

What is the car Loan EMI for ₹3 lakhs?

The car loan EMI for ₹3 Lakh depends upon the interest rate and loan tenure. However, let’s assume the interest rate is 10% and the loan tenure is 5 years, then using the car loan EMI calculator, your monthly EMI would be ₹6374. If the rate of interest is lower, then the EMI amount will be less than ₹6374.

What is the car Loan EMI for ₹5 lakhs?

The car loan EMI for ₹5 Lakh depends upon the interest rate and loan tenure. But, let’s assume the interest rate is 10% and the loan tenure is 5 years, then using the car loan EMI calculator, your monthly EMI would be ₹10624. If the rate of interest is lower, then the EMI amount will be less than ₹10624.

How to repay your Car Loan EMI in advance?

To repay your car loan EMI in advance, you first need to check if the lender allows prepayment on the loan. If it is allowed, you can then decide how much you wish to pay in advance. Next, write an application requesting the lender for prepayment. Once it is approved, make the payment. After the prepayment is received, the lender will adjust the outstanding loan amount, which will reduce the EMI or loan tenure. Verify the new EMI or loan tenure with the lender.

Do I get a reminder for the car Loan EMI payment?

Usually, lenders send reminders regularly for car loan EMI payments. The reminders can be in the form of emails, SMS, or phone calls. However, it is always recommended to check their policy regarding payment reminders. You can also set up automatic payments through your bank account to ensure that your car loan EMI is paid on time without having to rely on reminders from your lender.

How much time does it take for car Loan EMI to be active?

A car loan EMI gets active from the first EMI due date, which is usually a month after the loan disbursement. The lender may provide you with a grace period of a few days after the due date before the EMI is considered overdue. However, it's important to check with your lender regarding the exact timeline for your car loan EMI activation and due dates. Make sure to pay your EMI on time every month to avoid any penalties and maintain a good credit score.

Car loan Calculator - Airtel Flexi Credit

Want to own your dream car, but don’t have the funds? A car loan can help you. We know how hard it can be to fund a family car. Therefore, car loans are the best way to own a car without having to pay the whole amount in one go! A car loan breaks down the expense of a car into affordable monthly EMIs, just like any other loan. You can check the estimated monthly EMI even before taking the loan with the help of a car loan EMI calculator.

It is a secured loan specifically designed for cars. The process of getting a car loan approved is much easier than any other type of loan. So, select your dream car today and buy it on EMI with a car loan. A car loan is offered depending on your monthly income and credit score. Therefore, if you have plans to buy a car in the near future, it is recommended to keep your existing credit and payments in check for a higher credit score.

Features of Car Loan EMI Calculator

A car loan EMI calculator or car loan calculator has amazing features for individuals planning to buy a car. Here are a few features you can use:

Allows users to adjust the car prices/amount to check the EMI plan for different cars.
Users can adjust the interest rates to compare EMI and interest amounts from different lenders.
Minimum and maximum tenure can be adjusted as per the borrower’s choice to understand the interest rates over the years.
The car EMI calculator also shows a break-up of the total amount into principal and interest amounts for a better understanding.

How is Car Loan EMI calculated?

The Car Loan EMI is generally calculated using the following formula:

Enter the amounts as you wish

E= P. R. (1+R)^n/[(1+R)^n -1]
Here,
E= Total monthly EMI
P= Principal amount
N= Total tenure in months
R= Rate of interest payable every month

However, with this car loan EMI calculator, you don’t need to waste your time putting in values and calculating the EMI amount. Just key in the values for the loan amount, tenure, and interest rate to know the exact EMI amount for your car loan.

What are the Benefits of a Car Loan Calculator?

There are various benefits of a car loan calculator. Here are a few:

It saves your time.
It is accurate.
It helps you plan your budget and be prudent with your expenses.
It helps you choose the loan tenure that is comfortable for you.
It helps you compare interest rates and the amount payable by you for the loan.
It breaks down the payable amount for a better understanding.

Use the car loan EMI calculator today to plan better for your dream vehicle and future today!