SBI Car Loan Calculator
The SBI Car Loan EMI calculator enables you to calculate the exact amount of EMI you have to deposit monthly and the interest you will pay over the tenure of the loan. All you need to do is enter the loan amount, loan tenure, and interest rate to know about your total EMI amount.
A vehicle loan is a loan that allows you to purchase two and four-wheelers for personal use. There are many types of vehicle loans, including car loans, two-wheeler loans, and pre-owned car loans. A car loan is a type of vehicle loan, where you can usually get up to 90% of financing of the car's on-road price. The remaining 10% has to be paid by you as a down payment.
EMI, which stands for Equated Monthly Installment, refers to predetermined fixed payments that borrowers make to lenders on a specified date each month. The EMI includes both the principal amount and the interest. This enables borrowers to repay their loans over a fixed period gradually.
How Does The SBI Car Loan EMI Calculator Work?
The car loan EMI calculator works based on 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 take a car loan for ₹25 lakhs. The loan comes with an interest rate of 8%. The tenure of the loan is 7 years. Let's use the formula to calculate the EMI amount for your car loan.
EMI = P x ( r x (1 + r)^n) / [( 1 + r)^n - 1]
EMI = 25,00,000 x 0.08/12 x (1 + 0.08/12)^84 / [(1 + 0.08/12)^84 - 1]
EMI = 25,00,000 x 0.00667 x (1.00667)^84 / (1.00667)^84 - 1
EMI = 25,00,000 x 0.00667 x (1.7479081561471) / 0.7479081561471
EMI = 29,146.3685037528925 / 0.7479081561471
EMI = ₹38,970.51 (approximately)
So, if you take a car loan for ₹25 lakhs for an interest rate of 8% for a tenure of 7 years, you would have to pay an EMI of around ₹39,000 every month.
How To Use The SBI Car Loan EMI Calculator?
To use the car loan EMI calculator, all you need to do is provide some basic information.
- The loan amount you need
- The interest rate at which you can get the loan
- The duration of the loan
With these inputs, the car loan EMI calculator gives you an idea about the EMI amount, which includes the principal and interest components.
Example:
Ms. Abirami is looking to buy a new car and she requires a loan for ₹42 lakhs. The interest on her loan is 9.5%. The duration of the loan is 6 years. Here's how much EMI she would have to pay every month.
EMI = P x ( r x (1 + r)^n) / [( 1 + r)^n - 1]
EMI = 42,00,000 x 0.095/12 x (1 + 0.095/12)^72 / [(1 + 0.095/12)^72 - 1]
EMI = 42,00,000 x 0.0079167 x (1.0079167)^72 / (1.0079167)^72 - 1
EMI = 58,663.454175338617836 / 0.7643069826274
EMI = ₹76,753.78 (approximately)
So, if Ms. Abirami gets a car loan for ₹42 lakhs at an interest rate of 9.5% for 6 years, she would have to pay around ₹76,754 every month for six years.
Benefits Of Using The SBI Car Loan EMI Calculator
Here is how the car loan EMI calculator can be helpful to you.
- The car loan EMI calculator can help you save time by giving accurate results in a few seconds.
- The calculator offers error-free results, unlike manual calculations.
- The calculator can help you get an idea of how much you need to repay each month as EMIs. This can help you plan your future financing options better.