Go For the Reliable Car Loan to Turn Your Dream into Reality
A car loan is the best way you to purchase the used car or a new one. Car loan is also an individual loan that facilitates the user to easily repay the loan amount as monthly payment. The buyer can choose the payment as direct payment of the full price or in a monthly payment. There are several banks and lending agencies provide the opportunity to get a new car and pay at your wish with some terms and conditions. Car loan includes the interest rate that for the lender to get a profit on the repayment amount by the buyer. Most of the people choose the unreliable agencies to buy a car or other four-wheel automobile with high-interest rate and repay due is short.
Eligibility criteria and EMI eligibility for car loan:-
Every bank provide the car loan for the individual who under the eligibility criteria. Besides, the individual has the capability to repay the loan amount on the due date. When you enter any official site of the bank; you can easily get both the eligibility and EMI calculator. By the use of the calculator; it provides the hope to an individual to successfully repay the amount. In the calculator, the customer enters the some basic details. The details you need to enter such as current living region, the car manufacturer, the cost of the car model, car model, employment type and DOB. And you get the loan eligibility through the calculator. You can manually enter the loan amount, interest rate, and due period to repay the loan amount. Now you get the EMI loan eligibility. The formula for car loan EMI is . E is EMI. P is the principal loan amount. r is the rate of interest cost. n is term or tenure of the due period.
How to calculate car loan EMI in excel:-
By the use of excel, the calculation is simpler and accurate for your repayment amount. The syntax to calculate the EMI eligibility in excel is PMT (rate, nper, pv, fv, type). Rate is interest rate for the loan cost. nper is total cost of payment of the loan. pv is the present value. fv is the future value. type is both number 0 or 1. The number 1 is beginning period and 0 is end period for the loan. Enter the online EMI calculator to get the exact loan amount and your eligibility of your dream car loan.
HDFC Car Loan EMI calculation
Model Maruti Suzuki Swift VDI
Showroom Price 7.26
TERM:84 Months (7 years),
Loan Amount by HDFC 4,50,000
450000*11.50=5175000/100=51750 (1 year interest)
51750*7=362250 (total interest amonut)
812250/84=9669.6 (at flat rate)
Interest calculated on Monthly reducing balance.
5 Years Term: 60 Months
Loan Amount: 5,10,000 EMI=11,216 (Processing fees 4,650)
IS flat or diminishing Interest rate:
1 year finance : Loan amount 5,40,000 (for 559000 valued car)
EMI:47,852 (Processing (4650)
574224-540000=34224 10% =54,000 (6.3%)
rate of interest = r = (1/t)(A/P – 1) 11.5%
Note: Rate of Intereset will Increase as Loan Term (EMI )Increases by banks).
Note: Ask the financier is flat rate(FIXED) interest or diminishing(Adjustable/ reducing) interest rate (interest calculated every month based on remaining loan amount).
HDFC proving Fixed interest rate but Public sector banks providing adjustable interest rates.