The EMI for a 10 Lakh car loan will vary with the interest rate and the tenure of the loan. For example: For a loan tenure of 5 years and an interest rate of 7%, the EMI for a 10 Lakh car loan will be Rs. 1,980 per month.
How can I calculate the car loan EMI amount?
There are two ways in which you can compute the car loan EMI as follows:
You can compute the car loan EMI amount with the help of the mathematical formula: EMI amount = [P x R x (1+R)^N]/[(1+R)^N-1], where P, R, and N are variables.
The EMI value thus keeps fluctuating with a change in each of these variables.
- ‘P’ stands for the principal amount. It is the original loan amount the bank gives you, and the interest will be calculated on this.
- R stands for the rate of interest
- N stands for the number of years in which the loan has to be repaid. It is calculated in the number of months as the EMI is paid monthly.
You can use the car loan EMI calculator. The car loan EMI calculator will show you the car loan EMI instantly without the need to use the complex formula.
What are the factors affecting the car loan EMI?
There are multiple factors affecting the car loan EMI calculation. As the EMI is based broadly on the principal amount, duration, and the rate of interest, any variations in these variables can result in a change in the EMI amount. The other factors are:
- Category (Salaried, self-employed professional or businessman)
- Age group
- Income slabs
- Car loan scheme
- Car loan applicant
- An account with the bank