LIC Car Loan Calculator
The LIC Car Loan calculator is a tool that helps you calculate your future monthly installments assigned for the repayment of your car loan. With the car loan EMI calculator, you can estimate your future EMIs (Equated Monthly Installments). The calculator will help you to budget your future finances and help you make responsible decisions.
A car loan is a loan that allows you to purchase four-wheelers for personal use. Usually, the lender loans the money while the buyer must repay the loan in EMIs over a specific tenure at a specific interest rate.
The EMI is a fixed amount of payment made by a borrower to the lender each month at a specific date. This date is predetermined at the time of lending the loan. The EMIs consist of the principal amount and the interest amount, ensuring that the borrowed loan is easily paid off in steps over a specified number of years.
How Does The LIC Car Loan EMI Calculator Work?
The calculator uses the below formula to calculate the monthly EMI payment.
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 looking to take a car loan for ₹57 lakhs. The interest rate carried by the loan is 9.8%. The tenure of the car loan is 5 years. Here's how much you have to pay as a monthly EMI for your car loan.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 57,00,000 x (0.098/12 x (1 + 0.098/12)^60) / (1 + 0.098/12)^60 - 1
EMI = 57,00,000 x 0.008166 x (1.008166)^60 / (1.008166)^60 - 1
EMI = 57,00,000 x 0.008166 x 1.6290064967758 / 0.6290064967758
EMI = 75,824.06220022574196 / 0.6290064967758
EMI = ₹1,20,546 (approximately).
So, if you take a car loan for ₹57 lakhs, carrying an interest rate of 9.8% for a tenure of 5 years, you would have to pay an EMI of around ₹1.2 lakhs.
How To Use The Koshex LIC Car Loan EMI Calculator?
The car loan EMI calculator generates results in a few seconds and allows you to understand whether the monthly payment would be affordable for you.
All you need to input is:
- Car loan amount
- Car loan rate of interest
- Car loan tenure
The calculator generates the EMI amount and the total loan interest payable throughout the loan tenure.
Example
Mr. Parthiban is looking to buy a car. He wants to take a car loan for ₹62 lakhs. The interest rate charged by the lender for the car loan is 10.4%. The tenure of the car loan is 7 years. Let's calculate his monthly EMI amount.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 62,00,000 x (0.104/12 x (1 + 0.104/12)^84) / (1 + 0.104/12)^84 - 1
EMI = 62,00,000 x 0.00867 x (1.00867)^84 / (1.00867)^84 - 1
EMI = 62,00,000 x 0.00867 x 2.0650223226646 / 1.0650223226646
EMI = 1,11,003.2099325129084 / 1.0650223226646
EMI = ₹1,04,226 (approximately).
So, if Mr. Parthiban takes a car loan for ₹62 lakhs at an interest rate of 10.4% for 7 years, he would have to pay an EMI of over ₹1 lakh every month.
Benefits Of Using The LIC Car Loan EMI Calculator
Using the car loan EMI calculator makes it easy for you to calculate your EMI payments. Here are a few other ways in which the calculator can help you:
- Calculating your EMI payments manually can take a lot of time. However, a calculator can save a lot of time as it can display results instantly.
- Also, manual calculations may result in errors or mistakes. But the calculator can help you get accurate results every time.
- The car loan EMI calculator can help you compare EMIs from different loan amounts and tenures. This can help you choose the right loan amount for you.
- By showing you the monthly EMI amount, the calculator can help you see whether the EMI amount can fit your monthly budget.