Learn how to calculate your car loan EMI

A car loan EMI calculator helps you calculate your car loan EMI. Here is how you can use it

You can easily calculate the EMI of your car loan. As soon as you enter the loan amount and car EMI interest rate into the EMI calculator, the EMI amount will be visible. The EMI calculator calculates the instalment based on the balance amount you need to pay after the down-payment. Processing fees or other charges may be included in the car EMI that is computed, although it depends on the lending institution.

What is a car loan EMI?

A car offers freedom and flexibility. It makes you independent, allowing you to travel at your convenience. But cars do not come cheap. With the rise in inflation, buying a car has also become expensive. However, a car loan, which is a form of secured loan, is a useful tool that can help you buy a car without exposing your savings.

With car loans, you also have the option of buying a new or a used car. But before you apply for a car loan, ensure you know the car you want to buy and your budget. Both factors combined determine the down payment you make and the loan amount you will need. You can repay the loan over a pre-determined duration of time with manageable EMIs.

But always ensure that you pay your EMIs on time. Your credit score may suffer if you default on the loan, and the lender may seize the vehicle to recoup losses.

What is a car loan EMI calculator?

The car loan EMI calculator helps calculate the EMIs you will have to pay the lender over the course of the loan. If you use the calculator, you can get a good idea of how much you need to borrow, the interest rate, and the car loan EMIs.

The car loan EMI calculator has three sliders: loan value, loan term, and interest rate. Once you enter these variables, the car loan EMI calculator will show you how much you will have to pay back to the bank each month.

How to calculate car loan EMI?

The following mathematical formula can help compute the car loan EMI amount:

EMI = [P x R x (1+R) ^ N] / [(1+R) ^N-1]

where P, R, and N represent the principal amount, rate of interest, and duration, respectively. 

What are the benefits of using a car EMI calculator?

The car loan EMI calculator gives you the EMI amount after you to enter the loan amount, number of months, and interest rate. You will receive a clear picture of the EMIs you will pay the lender on your car loan. It will assist you in getting your financial affairs in order before applying for a car loan.

The car loan EMI calculator helps calculate your EMIs in seconds, eliminating tedious manual computations. One of the most important features of a car loan EMI calculator is that it assists you in determining the loan term for repayments. Because you can determine how much you will have to pay per month, you can decide if you want to buy a low EMI car or an expensive car.

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Buying a car on EMI through Metra Trust has many benefits. The car loan application process is completely digital, while Metra Trust also offers the lowest interest rates. There are multiple EMI options available as well, giving you the freedom to structure your loan. Before applying for the loan, you can use the used car loan EMI calculator available on the website.

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Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.