IDFC Car Loan Calculator
The IDFC Car Loan calculator is a utility tool that helps you to determine the equated monthly installments that you must pay the lender, throughout the car loan. All you need to do is enter the amount you are borrowing, the interest tenure, and the repayment tenure of the loan. Once you fill in the details, the car loan EMI calculator will show you how much to repay the bank each month.
A car loan is a loan that you take to purchase a car with minimal initial payment from your pocket. The borrowed money from the lender can be repaid in equal monthly installments over a period of time with an agreed rate of interest. Normally, car loans are secured with the vehicle itself that is being bought. It is treated as security for the car loan. In case, the loan is not repaid within the stipulated time period, the lender can possess your car and sell it off to end the dues.
An EMI is defined as the payment amount made by a borrower to a lender at a specified date each calendar month. The principal borrowed, rate of interest, tenure of the loan, and fixed or floating type of loan are some of the factors that affect EMI.
How Does The IDFC Car Loan EMI Calculator Work?
To calculate the monthly EMI, the calculator uses 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 buy a luxury car. The loan amount you are expecting to get is ₹88 lakhs. The loan carries an interest rate of 7.75%. The repayment period of the loan is 5 years. By putting the values in the calculator formula, we get:
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 88,00,000 x (0.0775/12 x (1 + 0.0775/12)^60 / (1 + 0.0775/12)^60 - 1))
EMI = 88,00,000 x 0.00645833 x (1.00645833)^60 / (1.00645833)^60 - 1))
EMI = 88,00,000 x 0.00645833 x 1.471458168936 / 0.471458168936
EMI = 83,627.829438423044544 / 0.471458168936
EMI = ₹1,77,381
So, if you take a car loan for ₹88 lakhs at an interest rate of 7.75% for a tenure of 5 years, you would have to pay a monthly EMI of ₹1,77,381.
How To Use The Koshex IDFC Car Loan EMI Calculator Work?
The car loan EMI calculator is easy to use, intuitive to understand, and quick to perform.
Enter the following information in the EMI calculator.
- The principal loan amount you wish to avail
- Rate of interest
- Loan term
As soon as the values are entered into the calculator, the calculator will calculate your monthly EMI amount.
Example
Ms. Gayathri is planning to take a car loan for ₹15 lakhs. The interest rate of the loan is 7.5%. The repayment period of the loan is 3 years. Here's how much she would have to pay every month for her EMI.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 15,00,000 x (0.075/12) x (1 + 0.075/12)^36 / (1 + 0.075/12)^36 - 1))
EMI = 15,00,000 x 0.00625 x (1.00625)^36 / (1.00625)^36 - 1))
EMI = 15,00,000 x 0.00625 x 1.2514461355144 / 0.2514461355144
EMI = 11,732.3075204475 / 0.2514461355144
EMI = ₹46,659
So, if Ms. Gayathri takes a car loan for ₹15 lakhs at an interest rate of 7.5% for 3 years, she would have to pay an EMI of around ₹46,659.
Benefits Of Using The IDFC Car Loan EMI Calculator
We have mentioned some of the benefits of using the car loan EMI calculator below.
- The car loan EMI calculator helps you get a clear idea of the EMIs you would be paying the lender. This will help you get your finances in order before applying for the car loan.
- The calculator shows you the EMIs in seconds, eliminating the need for complex manual calculations.
- The calculator helps you choose the right loan tenure for the repayments.