Tata Car Loan Calculator
The Tata Car Loan calculator allows you to understand the monthly payments or EMIs (Equated Monthly Installments) on a car loan. The calculator shows all the details of a loan, like the principal amount repayment and the total interest amount to be repaid. This helps consumers make an informed decision.
A car loan is a type of loan, in which the borrower borrows money from the lender to purchase a car. The loan can be repaid in EMIs (Equated Monthly Installments) over a period of time with an agreed rate of interest.
EMIs are a convenient way to repay loans in equal monthly payments. They are calculated based on the principal amount, interest rate, and loan tenure. Part of your EMI payment covers the interest charges, and the rest goes towards reducing the principal amount.
How Does The Tata Car Loan EMI Calculator Work?
The calculator works based on the following 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 ₹24 lakhs. The interest rate charged by the lender for the car loan is 12.5%. The repayment duration of the loan is 4 years. By putting the values in the formula, here's how much you have to pay as monthly EMI.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 24,00,000 x (0.125/12 x (1 + 0.125/12)^48) / (1 + 0.125/12)^48 - 1
EMI = 24,00,000 x 0.0104167 x (1.0104167)^48 / (1.0104167)^48 - 1
EMI = 24,00,000 x 0.0104167 x 1.6444654240346 / 0.6444654240346
EMI = 41,111.767158098922768 / 0.6444654240346
EMI = ₹63,792
So, if you take a car loan for ₹24 lakhs for 12.5% for 4 years, you have to pay an EMI of ₹64,000 every month.
How To Use The Koshex Tata Car Loan EMI Calculator?
The calculator is immensely helpful and quite easy to use. Let's go through the procedure, explained in three easy steps.
The first step is to write the loan amount.
The next step is to key in the interest rate.
The final step is to mention the duration of the loan.
After you have entered the details, the calculator will show you the total principal amount, interest amount, and monthly EMI payment.
Example
Mr. Samit is looking to purchase a car and he needs a car loan for ₹48 lakhs. The interest rate carried by the car loan is 9%. The repayment tenure of the loan is 8 years. Here's how you can calculate the EMI amount.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 48,00,000 x (0.09/12 x (1 + 0.09/12)^96) / (1 + 0.09/12)^96 - 1
EMI = 48,00,000 x 0.0075 x (1.0075)^96 / (1.0075)^96 - 1
EMI = 48,00,000 x 0.0075 x 2.0489212282389 / 1.0489212282389
EMI = 73,761.1642166004 / 1.0489212282389
EMI = ₹70,321
So, if Mr. Samit takes a car loan for ₹48 lakhs at an interest rate of 9% for 8 years, he would have to pay an EMI of ₹70,321 every month.
Benefits Of Using The Tata Car Loan EMI Calculator
Let us explain the benefits of the car loan EMI calculator.
- Using a car loan EMI calculator helps you save time. When you enter the variables, the calculator shows the results immediately. However, without the online calculator, you may have to make these calculations with new variables every time, which would take a lot of time.
- Since the calculator is automated, it removes any probability of errors.
- The calculator helps you plan out your repayment in a better way.
- The calculator lets you determine how much loan amount you can afford to borrow.