EMIs on cars are calculated by using factors like the loan amount borrowed, the interest rate and tenure. With the help of a Car Loan EMI calculator, you will be able to know the approximate EMI that will be applicable for you. The EMI consists of the principal and the interest charged. Thus the EMI to be paid will include both the principal amount and the interest applicable.
The EMI to be paid will remain fixed for the entire tenure of the loan and will have to be paid on a monthly basis. For example, you borrow a loan amount of Rs. 1,50,000 at an interest rate of 7% for a tenure of 2 years, you’ll have to pay an EMI of Rs. 6,716. The interest amount will be Rs. 11,181 and thus the total payable amount will be Rs. 1,61,181.