Axis Car Loan Calculator
The Axis Car Loan calculator simplifies the decision-making process for securing a loan for your next car. The calculator provides a user-friendly experience and helps you determine the EMI amount for your car loan. It removes the guesswork from figuring out how much you should borrow and what interest you will have to pay, making it a useful tool for anyone considering a car loan.
A car loan is a loan taken out to buy a car. Banks and lenders offer car loans, where you borrow a certain amount of money to buy a car. In return for the loan, you pay interest to the financial institution that lent you the money. You need to pay back the loan within a certain period (called the term). This is the amount of time over which you agree to repay the loan, usually in monthly installments.
An EMI (Equated Monthly Installment) is a fixed amount that a person needs to pay every month on a fixed date to clear off an outstanding loan within a fixed time frame. The total payable amount is divided into equal amounts as per the repayment tenure chosen by borrowers.
How Does The Axis Car Loan EMI Calculator Work?
The car loan EMI calculator uses the below formula to calculate the monthly EMI amount.
Where,
P is the principal home loan amount
r is the rate of interest per month
n is the loan tenure in months
Example
You are planning to buy a luxury car and want to take a car loan for a whopping ₹94 lakhs. The interest rate for the car loan is 8.75%. The repayment duration of the car loan is 5 years. The monthly EMI of your car loan will be:
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 94,00,000 x (0.0875/12 x (1 + 0.0875/12)^60 / (1 + 0.0875/12)^60 - 1)
EMI = 94,00,000 x 0.00729167 x (1.00729167)^60 / (1.00729167)^60 - 1
EMI = 94,00,000 x 0.00729167 x 1.5463740348089 / 0.5463740348089
EMI = 1,05,991.1020889131115122 / 0.5463740348089
EMI = ₹1,93,990
So, if you buy a luxury car for ₹94 lakhs at an interest rate of 8.75% for 5 years, you have to pay a monthly EMI of ₹1.94 lakhs.
How To Use The Koshex Axis Car Loan EMI Calculator?
Using the car loan EMI calculator is a simple and efficient way to understand your monthly financial commitment and get a clear picture of your car loan's terms. Here's a concise step-by-step guide on using a car loan EMI calculator.
- Input the loan amount you intend to borrow for your car purchase.
- Specify the loan tenure, indicating the number of years you plan to repay the loan.
- Enter the annual interest rate provided by the lender, ensuring it is accurate for precise calculations.
The calculator will process the information automatically and show your monthly EMI amount instantly.
Example
Mr. Nandhu is looking to buy a car for his family and he wants to take a car loan for ₹23 lakhs. The interest rate for the loan is 10.5% and the tenure of the loan is 3 years. Here's how much Mr. Nandhu would have to pay every month for his EMI.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 23,00,000 x (0.105/12 x (1 + 0.105/12)^36 / (1 + 0.105/12)^36 - 1)
EMI = 23,00,000 x 0.00875 x (1.00875)^36 / (1.00875)^36 - 1
EMI = 23,00,000 x 0.00875 x 1.3683831517491 / 0.3683831517491
EMI = 27,538.7109289506375 / 0.3683831517491
EMI = ₹74,756
So, if Mr. Nandhu takes a car loan for ₹23 lakhs at an interest rate of 10.5% for 3 years, he would have to pay a monthly EMI of nearly ₹75,000.
Benefits Of Using The Axis Car Loan EMI Calculator
A car loan EMI calculator is a handy tool when you are thinking of getting a car loan. Here's why it's a game-changer:
- The car loan EMI calculator tells you exactly how much you will pay each month for your car loan, making sure there are no surprises in your budget.
- The calculator can help you check different loan options to see which one suits you best.
- The calculator helps you see if the loan fits your budget before you even apply for it.
- The calculator helps you avoid complex calculations, doing the work for you.