IDBI Car Loan Calculator
The IDBI Car Loan calculator helps you compute car loan EMI in advance simply by entering your loan amount, interest rate, and period. Once these details are entered, a car loan EMI calculator gives an accurate EMI amount. This helps you plan the repayment of your car loan in advance.
A car loan is a type of loan that allows you to borrow money from a lender and use that money to purchase a car. You will have to repay the loan in fixed installments over a set period and interest will be charged on your borrowed money.
The EMIs (Equated Monthly Installments) are a convenient way to repay loans. They are calculated based on the principal amount, interest rate, and loan tenure. A higher EMI reduces the loan tenure, while a lower EMI increases it. By making timely EMI payments, you can maintain a good credit score and avoid the possibility of loan default.
How Does The IDBI Car Loan EMI Calculator Work?
Below is the formula used by the calculator 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
If you take a car loan for ₹36 lakhs at an interest rate of 7.5% for 4 years, here's how much you would need to pay as EMI.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 36,00,000 x (0.075/12 x (1 + 0.075/12)^48) / (1 + 0.075/12)^48 - 1))
EMI = 36,00,000 x 0.00625 x (1.00625)^48 / (1.00625)^48 - 1))
EMI = 36,00,000 x 0.00625 x 1.3485991513427 / 0.3485991513427
EMI = 30,343.48090521075 / 0.3485991513427
EMI = ₹87,044
So, if you take a car loan for ₹36 lakhs at an interest rate of 7.5% for 4 years, you would have to pay a monthly EMI of over ₹87,000.
How To Use The Koshex IDBI Car Loan EMI Calculator Work?
Using the car loan EMI calculator is straightforward. All you need to do is follow the below steps.
- Firstly, enter the amount you would like to take as a car loan.
- Secondly, mention the interest rate of the loan.
- Finally, specify the repayment period of the loan.
Once the details are entered by you, the calculator will show you the principal amount, interest amount, and monthly EMI amount.
Example
Mr. Fitch is looking to take a car loan for ₹64 lakhs. The interest rate of the car loan is 8%. The tenure of the loan is 7 years. Let's calculate the EMI amount using the above formula.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 64,00,000 x (0.08/12 x (1 + 0.08/12)^84) / (1 + 0.08/12)^84 - 1))
EMI = 64,00,000 X 0.00667 X (1.00667)^84 / (1.00667)^84 - 1))
EMI = 64,00,000 X 0.00667 x 1.7479081561471 / 0.7479081561471
EMI = 74,614.7033696074048 / 0.7479081561471
EMI = ₹99,764 (approximately).
So, if Mr. Fitch takes a car loan for ₹64 lakhs at an interest rate of 8% for a period of 7 years, he would have to pay a monthly EMI of nearly ₹1 lakh.
Benefits Of Using The IDBI Car Loan EMI Calculator
Here are the benefits of the car loan EMI calculator.
- The car loan calculator helps you plan the repayment of your car loan.
- The calculator helps you know the exact EMI amount you need to pay each month.
- The calculator is easy to use and provides accurate results every time.