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All details about Car Loan EMIs

‘Buying a car’ is a milestone you will find on everyone’s checklists. A car promises incredible travel convenience and comfort. You need not travel as per the local transport’s schedule or struggle to find a rick or cab no matter the time. Owning a car is a status symbol. You can head for long drives with your loved ones and have a good time.

Earlier, the steep car prices made us hesitant to tick off vehicle purchases or drop the idea altogether. But thanks to Car Loans, you can buy a car without compromising your affordability. It lets you borrow a significant amount at a competitive interest rate for a preferred tenure. Apply for one by filling out the application form and submitting the Car Loan document required.

You can repay the Car Loan in affordable equated monthly instalments. The EMI includes components like principal amount and interest rates. The EMI remains fixed throughout the repayment tenure. Let us understand Car Loan EMIs better.

How are Car Loan EMIs calculated?

The EMI varies for every Loan applicant based on the Loan amount, applicable interest rates, and opted tenure. You can compute the Car Loan EMI amount manually or use the Car Loan EMI calculator. Use the following formula to calculate the Car Loan EMI manually:

A = P x R x (1 + R) ^ N [ (1 + R) ^ N – 1]

The formula variables stand for the following:

  • A = Payable EMIs
  • P = Loan amount
  • R = Interest rates
  • N = Number of monthly instalments

Manual calculations are challenging and time-consuming. You cannot guarantee the accuracy of the numbers obtained. Consider using the Car Loan EMI calculator for quick and reliable results. Visit the bank’s website to access the calculator, free of cost.

How to pay the Car Loan EMIs?

You can pay the EMIs by opting for any of the following ways:

  • Provide the bank with post-dated cheques of the payable EMI amount.
  • Opt for the NACH to pay the EMIs if you do not hold a Bank Account with the bank where you have applied for the Loan.
  • Use Online Banking platforms to provide standing instructions to the bank to debit the payable EMI amount on the due date automatically.

Avoid delayed and non-payments always. They increase your interest liabilities and negatively impact your credit scores.

What are the other repayment options?

Besides EMI, you can also repay your Car Loan by making partial and entire pre-payments. This means repaying the Loan before tenure completion. It reduces your interest liabilities. Opt for it if you have the required financial resources in hand.