Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

Car Loan

Learn how to calculate your car loan EMI

Summary: Know how to Calculate the EMI of your Car Loan based on the balance amount you need to pay after the down-payment, car loan EMI calculator.

12 Oct 2021 by Team FinFIRST

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. 

Banks provide auto loans with reasonable interest rates and lenient terms. The principal and interest of the loan are components of the EMI for a car loan. The car EMI would be fixed for the duration of the loan term and reimbursed in monthly instalments.

 

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.

This Diwali, RIDE HOME IN YOUR NEW JOY WHEELS with IDFC FIRST Bank! 

New Car Loan

1st Oct - 30th Nov 2021

7.49%* rate of interest, Nil Processing fee

Pre-owned Car Loan

1st Oct - 30th Nov 2021

10.49%* rate of interest, Nil Processing fee


Buying a car on EMI through IDFC FIRST Bank has many benefits. The car loan application process is completely digital, while IDFC FIRST Bank 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.

If you wish to apply for a FASTag online, choose the IDFC FIRST Bank FASTag, FIRSTForward, for the wide range of offers. Click here to know more.

 

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 IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank 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.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.