It is very easy to calculate the EMI for your car loan. You will get EMI as soon as you enter the required loan amount and the interest rate. Installment in EMI calculator is calculated on reducing balance. As per the rules of financing institutions, processing fee or possible charges may be applicable which are not shown in the EMI we calculate.

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## Calculate your EMI

Down PaymentRs.0

0Rs.0

Bank Interest Rate 8 %

8%22%

Loan Period ( Years )

- Total Loan AmountRs.0
- Payable AmountRs.0
- You''ll pay extraRs.0

EMIper month

Rs0

Calculated on

On Road

Price

Get Bank Quotation

At CarDekho, we can help you get the best deal on your loans. Please call us on 1800 200 3000 for help.

## Frequently Asked Questions On Emi

### How is car loan EMI calculated monthly?

EMIs or Equated Monthly Installments refer to the monthly payments you make to the lender to repay your loan. These payments include the principal amount as well as the interest i.e. EMI = Principal Amount + Interest on Principal amount. Mathematically, EMI can be calculated using the following formula:

{P x R x (1+R)^N / [(1+R)^N-1]}

where, P = Principal amount of the loan, R = Rate of interest and N = Number of monthly installments.

### What are the documents required to apply for a car loan?

To process your loan application with the chosen lender, you would be required to submit your KYC documents, which include your identity proof and current address proof, a copy of your PAN Card, your bank statement and your income proofs (Form 16/Salary Slips/ITR). You can get the exact requirement from your loan consultant after applying with us here.

### What is the minimum down payment for a car loan?

The lenders generally finance 90% of the On-Road Price of the car. Some customers may be eligible for 100% funding too. This means the minimum possible down payment that you have to pay includes the RTO and insurance charges. Down payment is the difference between the On-Road Price of the car and the amount funded by the lender. For example:- Rohit from New Delhi is planning to purchase Honda Amaze, which has an ex-showroom price of ? 7,05,000 in New Delhi. RTO charges for this car in New Delhi will be ? 68,018 and Insurance charges will be ? 29,880. A leading financier approved his new car loan for 90% of the On-Road Price of the car. Therefore, he will have to pay the 10% of On-Road Price (10% of ? 802898 = ? 80289.8) as a down payment to purchase the car.

### What is the tenure for which I can avail a car loan?

Most lenders offer car loans for tenures ranging from 1 year to 5 years. You can choose the loan tenure as per your preference. Some lenders like HDFC Bank, Axis Bank, ICICI Bank also offer car loans with tenure up to 7 years.

Generally, new car loan customers choose a 5-year tenure. For a longer tenure, EMIs will be lower but the borrower will end up paying more interest against the loan amount and for a shorter tenure, EMIs will be higher and the customer will end up paying lower interest against the loan amount. So, if the customer is getting a loan for 7 years and doesn’t want to commit to a higher EMI then he should choose a loan tenure for 7 years.

### What will be the rate of interest on a car loan?

Interest rate primarily depends on the principal amount and tenure of the car loan. Interest rate of lenders generally varies from 8.75% per annum to 11.50% per annum.

### What is the maximum number of years I can get a car loan for?

Most lenders offer car loans for tenures ranging from 1 to 5 years. You can choose the loan tenure as per your preference. Some lenders like HDFC Bank, Axis Bank, ICICI Bank also offer a car loan with tenure up to 7 years.

### What happens when I pay a bigger amount than my actual EMI for a car loan?

When you are paying off a part of the car loan by making larger payments than the EMI, before the end of the tenure, then it is called part prepayment. By part prepayment, your principal outstanding will be reduced and also reduce your future EMIs. Usually, banks accept part prepayment of upto 25% of the principal outstanding amount in a year, charges against the part prepayment depends upon the due month of the EMI.

For example: HDFC charges 5% on the part payment amount in case part prepayment is within 13-24 months from 1st EMI and 3% on the part payment amount in case part prepayment is post 24 months from 1st EMI.

### What is the difference between fixed-rate and floating-rate interest on car loan?

### Fixed Interest Rate:

Fixed Interest Rate allows the repayment in fixed equal monthly installments over the entire period of the loan. The interest rates in such a case are fixed and don’t change with market fluctuations. Thus the borrower knows the exact amount he needs to pay in the future or at least he knows the exact interest rate to pay for the outstanding loan at that time.

### Floating Interest Rate:

Floating interest rate, which is also referred to as variable or adjustable interest rate is any debt instrument that does not have a fixed interest rate. The time period for a car loan plays an important role in deciding this fixed percentage. The borrower decides the time period and the lender charges the interest rate accordingly. This period generally ranges from 1 month-7 years.

### How can I make my loan EMI payments?

After the car loan is approved, a customer will have to sign an agreement including a NACH (National Automated Clearing House) form, a centralised system implemented by National Payments Corporation of India (NPCI), launched with an aim to consolidate multiple ECS (Electronic Clearing Service) systems running across the country allowing paperless debit transactions between banks.

Getting into such an agreement would mean that the customer has granted permission for auto-debiting of the EMI amount from his bank account on a date as mentioned in the agreement till the last EMI of the loan amount.

### What should be done after paying the last EMI?

A number of borrowers assume their job is done after paying off the last equated monthly installment (EMI) on their car loan. But, there are still some unfinished tasks left for the borrower. After completing the repayment of your car loan, there are five important things that you need to do as explained below:

a) If you made the last EMI on your car loan or did a prepayment to close the car loan, then get the final payment receipt from your bank.

b) Within 2-3 weeks’ time of repaying the car loan, you should receive all your documents from the bank via post at your registered address. The set of documents includes a No Dues Certificate (NDC) or No Objection Certificate (NOC) from the bank along with other documents submitted at the time of the car loan application.

c) Do collect the entire repayment statement of your car loan from the bank which you can receive after submitting an application in the bank. This will be useful while updating the credit history in case of any discrepancies in your credit score and report.

d) Hypothecation essentially means that the car for which you have taken a loan for is kept as collateral with the bank until you pay off the loan. The car is in the physical possession of the customer but the bank is the actual owner of the car until the customer pays off the entire loan amount. Once the loan amount is completely repaid, hypothecation removal is required to transfer the ownership of the car to the customer as there is no outstanding amount against the car.

### Why is my CIBIL Score important for getting my loan sanctioned?

If you want to take a new car loan, you cannot afford to ignore the Credit Information Bureau of India Limited (CIBIL) score. It provides lenders a snapshot of your credit health and history, and your willingness and ability to repay debts on time. CIBIL scores are an indispensable part of getting a new car loan sanctioned. Lenders need to know that you are a creditworthy applicant who they can afford to lend to. Nothing proves to be a more reliable measure (at least at an initial stage) than a good CIBIL score. An unsatisfactory CIBIL score always weakens your chances of getting a car loan without any hassle.

### What should be the minimum CIBIL score to get a car loan?

While there is no fixed minimum CIBIL score to apply for a new car loan, it is recommended that you ensure that you have a score of at least 750 before you apply to avoid potential rejection.

### What are the steps for hypothecation removal from RC after Car Loan closure?

Hypothecation removal process can be explained in the following 4 steps:-

#### Step 1: Receive Documents from the Lender/Bank

### No Objection Certificate:

It is the agreement by bank, which states that the lender has no objection over removal of hypothecation

### Form 35:

Two copies of Form 35 are usually given, and it mentions the termination of hypothecation between you and the bank.

### Step 2: Documents to be taken to the RTO

You need to collect the following documents and then visit the RTO:

- Original Form 35, and copies of it signed by the registered owner and the bank, original Bank NOC, copy of your PAN Card, copy of valid car insurance, original RC (Registration Certificate), copy of your address proof, copy of valid Pollution Under Control (PUC) Certificate

Apart from a visit to the regional transport office, you will have to go to the insurance company, and submit a copy of No Dues Certificate, which you received from the bank

#### Step 3: Submit the Hypothecation Removal Application

Submit the duly filled Hypothecation Removal Application and attach the required set of documents to it

#### Step 4: Process to Receive the RC Smart Card

Now collect the ‘Acceptance Form’ that contains details mentioned on the RC. In case any corrections are required in the details, you must get it done. The changes (if any) will be reflected in the specific form.

- To collect the Smart Card RC you need to pay a fee.
- Collect receipt of the same, and you can take the Smart Card RC within a few days (date will be specified).
- Visit RTO for collecting the new RC Smart Card (sans hypothecation), on the given date.

After all these procedures, you will get rightful ownership of the car you had taken on car loan, with the bank ownership cancelled over the vehicle.

### What are the benefits of applying for a car loan through CarDekho?

CarDekho is a one-stop solution for all your car finance needs. We have partnered with India’s leading banks and NBFCs to help you get a loan to purchase your dream car. We provide you with door-step assistance making the process hassle-free and quick. Just fill out the form, check your eligible quotes from our partners and submit the application to us. We will take care of the rest.

### What will be the rate of interest if I take a loan through CarDekho? Will I be charged a processing fee on my loan?

We provide offers starting from 10% per annum. Your exact rate of interest will be determined by the lender on the basis of your loan application. Lenders generally charge you a processing fee that’s directly deducted from your loan amount. The processing fees can be negotiated with the lender at the time of sanction of your application.

### Does CarDekho help provide loans on used cars as well?

Yes, CarDekho offers loans on used cars as well. We are serviceable in 65 locations, have satisfied upward of 45,000 customers through our service and provided hasslefree experience of RC transfer to about 26,000 customers. We are the trusted partners of all leading financiers of India such as HDFC Bank, Axis Bank, IDFC First bank, etc. You can begin your used car loan application here and we will help you process your used car loan with minimal hassle.

### What will be the charges if I miss paying an EMI on time?

Whenever an EMI is missed, the bank charges a late payment fee which varies from bank to bank. Late payment charges of some major lenders can be found below:

Bank | Late Payment Charges |
---|---|

HDFC Bank Car Loan | 2% pm on overdue amount |

ICICI Bank Car Loan | 2% pm on overdue amount |

Axis Bank | 2% pm on overdue amount |

Kotak Bank | 3% pm on overdue amount |

## FAQs

### How is EMI calculated after down payment? ›

The total amount you need for the down payment is Rs 10,00,000 + Rs 40,000 = Rs 10,40,000. Total down payment = Rs 10.4 lakh. You must calculate EMIs on the home loan using the formula: **EMI amount = [P x R x (1+R)^N]/[(1+R)^N-1]** where P, R, and N are the variables.

**How is car loan EMI calculated? ›**

You can calculate 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 the variables. This also means that the EMI value will change, each time you change any of the three variables.

**How is EMI interest calculated? ›**

The mathematical formula to calculate EMI is: **EMI = P × r × (1 + r)n/((1 + r)n - 1)** where P= Loan amount, r= interest rate, n=tenure in number of months.

**What is EMI calculation formula? ›**

Formula for EMI Calculation is **-**

**P x R x (1+R)^N / [(1+R)^N-1]** where- P = Principal loan amount. N = Loan tenure in months. R = Monthly interest rate. The rate of interest (R) on your loan is calculated per month.

**How do you calculate a downpayment on a car? ›**

To figure the down payment you need, **multiply the total amount by the percentage required by the lender, minus the value of any trade-in you have**, to get the amount you need to put down.

**How much is 3.5 downpayment? ›**

Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, **for a $250,000 home, a down payment of 3.5% is $8,750**, while 20% is $50,000.

**How do you calculate monthly interest rate? ›**

**Monthly Interest Rate Calculation Example**

- Convert the annual rate from a percent to a decimal by dividing by 100: 10/100 = 0.10.
- Now divide that number by 12 to get the monthly interest rate in decimal form: 0.10/12 = 0.0083.

**What is the interest rate for car loan? ›**

Name of the Lender | Interest Rate (p.a.) | Loan Amount |
---|---|---|

Union Bank of India | 7.40% onwards | Up to Rs.125 lakh |

IDBI Bank | 7.35% onwards (floating) | Up to Rs.25 lakh |

Axis Bank | 7.45% onwards | Rs.1 lakh onwards |

State Bank of India | 7.20% onwards | Up to 48 times of monthly income |

**How can I calculate my car? ›**

It is calculated by **deducting all liabilities from the total value of an asset** (Equity = Assets – Liabilities). and retained earnings. Retained Earnings are part, which are disclosed on financial statements.

**How do you calculate interest rate example? ›**

**Simple Interest Formula**

- (P x r x t) ÷ 100.
- (P x r x t) ÷ (100 x 12)
- FV = P x (1 + (r x t))
- Example 1: If you invest Rs.50,000 in a fixed deposit account for a period of 1 year at an interest rate of 8%, then the simple interest earned will be:

### How is pre EMI interest calculated? ›

In SBI the pre-emi is calculated using the formula **30,00,0000 * 30 * 0.105 / 365 = 25,890** (10.5% is the interest rate). This amount is the fixed pre-emi that i have to pay to bank until i get possession and my full emi starts after the possession.

**How do you calculate a loan payment? ›**

**Here's how you would calculate loan interest payments.**

- Divide the interest rate you're being charged by the number of payments you'll make each year, usually 12 months.
- Multiply that figure by the initial balance of your loan, which should start at the full amount you borrowed.

**What is the formula to calculate monthly payments on a loan? ›**

**To calculate the monthly payment, convert percentages to decimal format, then follow the formula:**

- a: $100,000, the amount of the loan.
- r: 0.005 (6% annual rate—expressed as 0.06—divided by 12 monthly payments per year)
- n: 360 (12 monthly payments per year times 30 years)

**Is down payment included in car loan amount? ›**

**A down payment on cars refers to the initial sum of money applied to a purchase being financed by the purchaser**. When making a large purchase, many buyers will pay some of that cost upfront in the form of a down payment in order to reduce the amount of money to be financed.

**How much should I put down on a 16000 car? ›**

Vehicle Price | 15% Down | 25% Down |
---|---|---|

$12,000 | $1,800 | $3,000 |

$14,000 | $2,100 | $3,500 |

$16,000 | $2,400 | $4,000 |

$18,000 | $2,700 | $4,500 |

**What is downpayment example? ›**

A common example of a down payment is **down payment on a house**. The home buyer may pay 5% to 25% of the total price of the home upfront, while taking out a mortgage from a bank or other financial institution to cover the remainder. Down payments on car purchases work similarly.

**What percent is a down payment? ›**

The average down payment in America is equal to about **6% of the borrower's loan value**. However, it's possible to buy a home with as little as 3% down depending on your loan type and credit score. You may even be able to buy a home with no money down if you qualify for a USDA loan or a VA loan.

**What is cash down payment? ›**

Down payment (also called a deposit in British English), is **an initial up-front partial payment for the purchase of expensive items/services such as a car or a house**. It is usually paid in cash or equivalent at the time of finalizing the transaction.

**What is the EMI for 10 lakh car? ›**

Loan amount | Loan tenure | EMI |
---|---|---|

Rs.5 lakh | 5 years | Rs.10,477 |

Rs.10 lakh | 1 year | Rs.87,637 |

Rs.10 lakh | 5 years | Rs.20,953 |

Rs.15 lakh | 1 year | Rs.1,31,456 |

**How can I lower my car loan interest rate? ›**

**Simple Ways to Reduce Your Loan EMI**

- Opt for a Higher Down Payment. ...
- Choose a Loan With a Longer Repayment Tenure. ...
- Go for a Step-Down EMI Plan. ...
- Consider Taking Loans With Your Existing Bank. ...
- Negotiate With Bank For Lower Rate. ...
- Compare Before You Switch Your Lender. ...
- Full or Part Prepayment Helps Reduce Loan Burden.

### How much car loan can I get on 40000 salary? ›

It is advised to customers that they restrict their car loans to **not more than 20 percent of their monthly income**. For example, if you make Rs. 40,000 per month, your monthly car loan EMI should not exceed Rs. 8,000.

**How do I calculate EMI in Excel? ›**

**EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]**. Here, P is the original loan amount or principal, R is the rate of interest that is applicable per annum and N is the number of monthly installments/ loan tenure.