PPFAS Car Loan Calculator
The PPFAS Car Loan calculator is an online tool that allows you to calculate your Equated Monthly Installments (EMIs). The calculator will take in your details like principal amount, interest rate, and preferred tenure to calculate your monthly EMI. The calculator will also allow you to change your inputs and compare EMI based on different interest rates or tenures.
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. Once you get the loan, you will need to repay the loan in fixed installments over a set period, and interest will be charged on your borrowed money.
An EMI refers to the fixed amount of money that a borrower must repay each month towards their loan. It comprises both the principal amount and the interest charged on the loan. In most cases, the EMI remains the same throughout the loan tenure unless there is a change in the interest rate or the repayment terms.
How Does The PPFAS Car Loan EMI Calculator Work?
The car loan EMI calculator uses the below formula to calculate your 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
You are planning to buy a luxury car and need a car loan for ₹83 lakhs. The repayment tenure of the loan is 6 years. The interest rate of the car loan is 13.5%. Below is how you can calculate your monthly EMI amount.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 83,00,000 x (0.135/12 x (1 + 0.135/12)^72 / (1 + 0.135/12)^72 - 1
EMI = 83,00,000 x 0.01125 x (1.01125)^72 / (1.01125)^72 - 1
EMI = 83,00,000 x 0.01125 x 2.2377650810351 / 1.2377650810351
EMI = 2,08,951.3144416524625 / 1.2377650810351
EMI = ₹1,68,813
So, if you get a car loan for ₹83 lakhs at an interest rate of 13.5% for 6 years, you would have to pay an EMI of nearly ₹1.69 lakhs every month.
How To Use The Koshex PPFAS Car Loan EMI Calculator?
Most car loan EMI calculators require inputs on specific parameters like:
- The principal loan amount that you want to borrow from the bank.
- The rate that is charged by the bank on the amount borrowed.
- The time period across which the entire loan will be repaid.
Once you provide these inputs, the car loan EMI calculator gives you the exact EMI amount.
Example
Ms. Tamara is looking to take a car loan for ₹55 lakhs. The bank is charging an interest rate of 7.4% for the car loan. The tenure of the loan is 3 years. By putting the above values in the calculator formula, we get:
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 55,00,000 x (0.074/12 x (1 + 0.074/12)^36) / (1 + 0.074/12)^36 - 1
EMI = 55,00,000 x 0.0061667 x (1.0061667)^36 / (1.0061667)^36 - 1
EMI = 55,00,000 x 0.0061667 x 1.2477220062719 / 0.2477220062719
EMI = 42,318.800128423091515 / 0.2477220062719
EMI = ₹1,70,832
So, if Ms. Tamara takes a car loan for ₹55 lakhs at an interest rate of 7.4% for a tenure of 3 years, she has to pay an EMI of around ₹1.71 lakhs every month.
Benefits Of Using The PPFAS Car Loan EMI Calculator
There are several benefits of using a car loan EMI calculator.
- The car loan EMI calculator is simple and user-friendly, making it a great tool for beginners.
- The calculator helps you get accurate results.
- You can adjust the inputs and determine the right loan amount and tenure for you.