EMI Calculator
FAQ's
1. How does a Car Loan EMI work?
- A car loan is a type of loan sourced from a bank for the purpose of buying a car.
- The loan can be repaid in a pre-agreed period of time over EMIs. If you default on your payments, your credit score will decrease and the lender could take the car back to make up for the loss.
- The Car Loan EMI constitutes the principal amount and the interest of the loan.
- The EMI is fixed and would be paid through installments on a monthly basis.
2. Explain the Car Loan Repayment table?
- The Car Loan Repayment table shows the periodic schedule of repayment of your car loan.
- The following details are listed in a Car loan repayment table:
1. Principal loan amount
2. EMI
3. Interest to be paid
4. Outstanding due after each payment
3. What are the factors taken into consideration for calculating Car Loan EMI?
There are many factors that affect the car loan EMI calculation. The EMI for your car loan will depend on the following listed factors:
- Principal amount
- Tenure
- Rate of interest
- Work Category (Salaried, Self- Employed Professional or a Businessman)
- Income slabs
- Age group
- Buying a New or used car
- Car loan scheme
- Car loan applicant
- Bank Account
4. Can the car loan EMI be modified in the future?
- The car loan EMI will fluctuate based on the choice of a floating rate or fixed rate.
- The EMI will change each month as per the rate of interest for that month in case of floating rate and will remain the same if a fixed rate is opted.
5. What are the advantages of using a car loan EMI Calculator?
1. Time-saving
It uses a standardized formula for calculating the car loan EMI and shows results as soon as you put in the essential information.
2. Accurate
An online car loan EMI calculator shows accurate calculations online a manual calculator.
3. Better credit rating
Using an EMI calculator helps know the amount that needs to be paid before even taking the loan so that you can make a detailed repayment plan to repay the loan amount on time ensuring a good credit rating.
4. Helps in planning the budget
It gives you an idea of how much you need to pay each month in EMI and accordingly you can decide and play your budget
5. Gives a breakdown of the total amount
The car loan EMI calculator shows the total payable amount including the loan amount, interest amount, processing fee etc.
6. Who is eligible for a car loan?
A car loan can be availed by the following categories:
- Self-employed people
- Salaried people
- Partnership firms
- HUFs and Trusts
Each bank has different eligibility requirements for different categories of people. These requirements are based on age group, income slab, IT requirements, etc.
7. What are the different payment methods by which your car loan EMI can be paid?
Your car loan EMI can be paid periodically using:
- Post-dated cheques
- Standing Instructions
- ECS mandate
- Debit cards
- Credit cards
- bank account
8. Will the tenure of the car loan affect my EMI?
Yes, the tenure of the car loan will affect your EMI. The longer the tenure of your car loan, the lower your payable amount for the EMI. The shorter the tenure of your car loan, the higher the payable amount for the EMI.
However, with a longer tenure, you will end up paying more money in interest over the duration of the tenure.
You can check the different EMI amounts and the tenure using our Car Loan EMI Calculator.
9. What are the documents required to avail a car loan?
To avail a car loan, you need to submit a few documents for verification. Different documents are required for salaried employees and self-employed individuals.
Documents required for Salaried employees -
Identity Proof - PAN Card/Voter ID/Aadhaar Card (need one of these)
Address Proof - Aadhaar Card/Voter ID/ Passport/utility bills (need one of these)
Income Proof - Salary slips and account statements for a particular number of months
You may also need to submit a signature proof required for verification of the buyer.
Documents required Self-Employed Individuals -
Identity Proof - PAN Card/Voter ID/Aadhaar Card (need one of these)
Address Proof - Aadhaar Card/Voter ID/ Passport/utility bills (need one of these)
Business ownership proof - Maintenance bill, office address, business utility bills etc.
Income proof - Income tax returns necessary for the preceding two years, and profit & loss statement and audited balance sheet.
You may also need to submit a signature proof required for verification of the buyer.
10. What is the maximum repayment period/tenure for a car loan in India?
Generally, a car loan repayment period can extend up to 5 years for the majority of the lenders. Some banks and financial institutions may offer tenure of up to 7 years. It is advised to enquire about this before you take a loan.