DHFL Car Loan Calculator
The DHFL Car Loan calculator is an online tool, which allows you to determine your monthly installment liabilities from a loan before you opt for it. You need to enter the loan amount, the loan tenure, and the rate of interest charged by your lender. On providing these details, the EMI calculator will show you the amount that you would have to pay against your car loan each month in due course of the tenure.
Car loans work by providing a lump sum of money for you to buy a car. To pay back the loan, you need to make monthly payments on the loan (with interest) over time. Until you fully repay the loan, the lender holds the title to the car and can repossess it if you fall behind on payments.
Equated Monthly Installment, or EMI, refers to the amount we must pay toward the loan obtained. The principal and interest on the loan are paid with the monthly EMI payments. The interest component of the EMI payment is the largest at the beginning of the loan term. The principal portion of the payment increases as the loan period lengthens, while the interest component decreases.
How Does The DHFL Car Loan EMI Calculator Work?
The car loan EMI calculator works based on the below formula.
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 take a car loan for ₹46 lakhs at an interest rate of 9.6%. The repayment duration of the loan is 7 years. Your monthly EMI amount would be:
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 46,00,000 x 0.096/12 x (1 + 0.096/12)^84 / ((1 + 0.096/12)^84 - 1)
EMI = 46,00,000 x 0.008 x (1.008)^84 / ((1.008)^84 -1)
EMI = 46,00,000 x 0.008 x 1.9529210977306 / 0.9529210977306
EMI = 71,867.49639648608 / 0.9529210977306
EMI = ₹75,418
So, if you take a car loan for ₹46 lakhs, carrying an interest rate of 9.6% for 7 years, you would need to pay a monthly EMI of ₹75,418.
How To Use The Koshex DHFL Car Loan EMI Calculator?
The car loan EMI calculator is easy to use. All you need to do is to follow the below steps.
The first step is to enter the amount you wish to borrow (loan principal).
The next step is to mention the rate of interest charged by your lender on the borrowed sum.
The final step is to specify how long you want your repayment period to last (loan tenure).
Once the details are provided, the calculator will show you the monthly EMI amount.
Example
Ms. Keerthana is looking to take a car loan for ₹33 lakhs. The interest rate carried by the loan is 7.2%. The tenure of the loan is 5 years. When we put the values in the formula, we get:
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 33,00,000 x 0.072/12 x (1 + 0.072/12)^60 / ((1 + 0.072/12)^60 - 1)
EMI = 33,00,000 x 0.006 x (1.006)^60 / ((1.006)^60 - 1)
EMI = 33,00,000 x 0.006 x 1.4317884120212 / 0.4317884120212
EMI = 28,349.41055801976 / 0.4317884120212
EMI = ₹65,656
So, if Ms. Keerthana takes a car loan for ₹33 lakhs at an interest rate of 7.2% for 5 years, she would have to pay an EMI of ₹65,656.
Benefits Of Using The DHFL Car Loan EMI Calculator
The car loan EMI calculator can be a beneficial tool for several reasons. A few of them are:
- The car loan EMI calculator performs complicated calculations in a matter of seconds. So, you don't have to spend a lot of time doing these calculations on your own.
- The calculator can give accurate results and help you avoid errors, which may occur when you do the calculations manually.
- The calculator helps you compare the interest rates of different loans. So, you can choose the loan with the best terms.