DSP Car Loan Calculator
The DSP Car Loan calculator is a tool that allows you to calculate the monthly installment (EMI) you will have to pay for a car loan. The calculator takes into account the loan amount, interest rate, and loan tenure to give you an estimate of the EMI. This can help you plan your finances and budget for the car loan repayment.
A car loan is secured with the vehicle you purchase. Car loans are paid off in fixed monthly installments with varying terms and interest rates. Just like the house loan, the lender retains ownership over the asset until you make the final payment.
EMI is the monthly sum of the principal amount plus the interest rate to repay the loan over a period of time. An EMI is an integral part of availing of any retail loans offered by lending institutions.
How Does The DSP Car Loan EMI Calculator Work?
The calculator uses the below formula to calculate your 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. You are thinking about taking a car loan for ₹90 lakhs. The interest rate of the loan is 10.75%. The tenure of the loan is 8 years. Let's calculate your monthly EMI amount using the formula.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 90,00,000 x (0.1075/12 x (1 + 0.1075/12)^96) / ((1 + 0.1075/12)^96 - 1)
EMI = 90,00,000 x 0.00895833 x (1.00895833)^96 / (1.00895833)^96 - 1
EMI = 90,00,000 x 0.00895833 x 2.3541281616017/ 1.3541281616017
EMI = 1,89,801.512405292214449 / 1.3541281616017
EMI = ₹1,40,165
So, if you take a car loan for ₹90 lakhs at an interest rate of 10.75% for 8 years, you would have to pay an EMI of over ₹1.4 lakhs monthly.
How To Use The Koshex DSP Car Loan EMI Calculator?
The procedure that must be followed to use the car loan EMI calculator is mentioned below:
- The first step would be to enter the loan amount.
- The second step is to mention the rate of interest.
- The next step is to specify the repayment tenure.
The calculator will show you the monthly EMI amount.
Example
Ms. Emma is looking to take a car loan for ₹23 lakhs at an interest rate of 11.2%. The repayment tenure of the loan is 8 years. Using the calculator formula, we get:
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 23,00,000 x (0.112/12) x (1 + (0.112/12) )^96 / (1+ (0.112/12)^96 - 1)
EMI = 23,00,000 x 0.00933 x (1.00933)^96 / (1.00933)^96 - 1
EMI = 23,00,000 x 0.00933 x 2.4388520605333 / 1.4388520605333
EMI = 52,335.3263669840847 / 1.4388520605333
EMI = ₹36,373 (approximately).
So, if Ms. Emma takes a car loan for ₹23 lakhs at an interest rate of 11.2% for 8 years, her EMI amount would be around ₹36,373.
Benefits Of Using The DSP Car Loan EMI Calculator
Below are some of the advantages of using the car loan EMI calculator.
- The car loan EMI calculator helps you understand your monthly EMI amount so you can plan your budget accordingly.
- The calculator shows accurate results. Manual calculations may not provide accurate results.
- The calculator can help you save time by displaying the results immediately.
- The calculator can help you choose the best lender and the down payment that must be paid.