Car Loan EMI Calculator

To help you manage your finances and understand your monthly instalment for a car loan, you can use our Car Loan EMI Calculator for a better understanding. Anyone can use it before applying for a loan, EMI calculators are available on all the official sites of banks, loan providers and other financial institutions.

Loan Amount

The loan amount is the actual amount that is borrowed for purchasing your vehicle. The EMI amount depends on the loan amount, higher the loan amount, higher is the monthly instalment that you will have to pay. The loan amount depends on the cost of your purchase and the applicant. To calculate your EMI, fill in the loan amount in the principal amount section.

Interest Rate

The EMI depends on the interest rate charged on the loan amount, it can be floating or constant or even hybrid. The rate at which interest is charged on the loan amount can depend on the loan amount and institution you are borrowing the money from. The interest rate can vary from one bank to another. It is always better to compare the different rates of interest and calculate the EMI for the same before choosing a loan. You can compare different loans on the Soulwallet website.

Tenure of the Loan

The tenure of the loan depends on the loan amount and the type of loan you are applying for. A longer time period will have a higher interest rate for which you will have to pay higher EMIs. For example, personal loans have a tenure of upto 5 years whereas home loans can go upto a period of 30 years.

Factors affecting Your EMI Amount

A car loan EMI depends on the loan amount, tenure of the loan and rate of interest. Other than these primary factors, the monthly instalment may vary depending on the factors like:

Change in loan tenure

Your EMI may increase or decrease depending on the tenure of your loan. Longer the tenure, lower is the EMI and shorter the tenure,  higher is the EMI. Although shorter tenure is preferred as the loan is repaid faster with lesser interest paid. If you are changing your loan tenure, you should consider all the factors that will be affecting your monthly instalment.

Flexible options for loan

There are numerous ways by which one can repay a car loan – regular EMI, step-up EMI and step-down EMI. Repayment refers to the periodic instalments that you make to settle the car loan. To avoid any troubles later, borrowers must be clear about the benefits and limitations of every repayment plan before signing the car loan contract.

Change in rate of interest during the tenure

Rates of interest can be fixed, floating or hybrid that can change with the tenure. If the rate of interest changes over the tenure of your loan, the monthly instalment is bound to change.  A fixed-rate of interest stays the same throughout your loan tenure. Floating rate of interest can change multiple times during a year and may or may not affect your EMI. Hybrid interest is a combination of both fixed and floating rate of interest. At first, the interest rate is fixed and later changes to a floating rate of interest over time.

Prepayment of the loan

Prepayment of any loan will reduce your interest cost. However, some lenders and financial institutions charge a fixed rate on the car loan as prepayment charges. We suggest you check with the provider about the prepayment charges and understand the breakup before finalising on a loan. It is best to compare loans from different providers.