New Car Loan EMI Calculator

Our new car loan EMI calculator is a financial tool that estimates the EMI (Equated Monthly Instalment) that you must pay for the car loan. The EMI is a monthly payment that the borrower must make to pay off the loan.

While manual calculation can be time-consuming and inaccurate, our EMI calculator is an efficient tool that gives you the exact amount of EMI instantly. The EMI includes the principal and the interest component that must be paid every month.

Just by filling out a few values in the calculator, you can find out the new car EMI in a few seconds. Once you know the EMI, you can plan your finances wisely and ensure that your monthly budget can smoothly accommodate this additional payment.

The TATA AIG new car loan EMI calculator works on the basis of a mathematical formula. It uses multiple values to carry out a complex calculation and arrive at the EMI amount for the car loan.

To get the loan amount, you must input the values for the loan amount, interest and loan tenure. Here is what each of the values means and implies:

-Principal Amount: Principal amount is also known as the loan amount. It is the money that you borrow from the lending institute or the lender. The loan amount depends on the car price of the car, your budget, your personal circumstances, etc.

-Rate of Interest: Interest is the charge that the lender levies for lending you the money. It is the additional amount that you pay over and above the loan amount. If you have a good CIBIL score, the loan terms will be relaxed.

-Loan Tenure: It is the duration for which the lender gives you the money. You must repay the loan during its tenure. A longer tenure means you have to pay lower EMIs and vice versa.

After you put the above values into the new car loan EMI calculator, it will immediately provide you with the EMI amount.

-Easy-to-Use Calculator: TATA AIG’s EMI calculator has an easy-to-use interface. Using the tool is simple and does not require any expertise. Thus, it can be used by anyone who wants to calculate the car loan EMI amount.

-Instant Calculation: The calculator instantly calculates the EMI amount. Thus, it saves you time that would otherwise be wasted on manual calculations.

-Facilitates Financial Planning: It shows you the exact monthly outflow of money. Thus, you can plan your finances to accommodate the EMI payments without hampering the other expenses.

-Precise Breakdown: The calculator gives you the exact breakdown of the EMI and principal amount that you must pay every month.

The car loan calculator utilises the following formula to calculate the car loan EMI:

-EMI= PR(1+R)n(1+R)n-1

In this formula,

-P= loan amount

-R= monthly interest rate

**-n=**loan tenure in months

Let us consider an example to understand how the EMI formula works.

Suman borrows ₹10 lakhs from a financial institution. The rate of interest on the loan is 10%, and the tenure of the loan is 84 months. For these values, the EMI is ₹16,601.18.

In the initial tenure, a large portion of the EMI is dedicated towards the interest payment. However, as the payment progresses, the loan amount comes down, which also reduces the interest. Hereafter, a larger portion of the EMI goes towards repaying the principal amount.

An amortisation schedule is a systematic and tabular representation of the EMI for a new car. The table provides you with a detailed breakdown of the car loan repayment amount, which includes the EMI, the interest component and the principal amount.

Continuing the above example, the details of Suman’s loan and repayment are as follows:

-Loan Amount (P): ₹ 10,00,000

-Interest Rate (R) 10%

-Tenure (N): 84 months

-Total Amount Payable: ₹13,94,449.46

-Monthly EMI: ₹16,601.18

The amortisation schedule of Suman’s loan for the first 15 months is given below

If you are planning to buy a new car by taking a loan, TATA AIG's new car loan calculator can assist you in finding out the exact EMI amount that you must pay over the tenure of the loan. The calculator is a simple one with a user-friendly interface. Here are the steps to use it.

-Go to the Car EMI Calculator Page: The first step is to go to the TATA AIG new car loan EMI calculator page. On the page, you will see the calculator with various fields, such as loan amount, interest rate and tenure.

-Key in the Loan Amount: This is the amount of money that you wish to borrow from the lender. You will pay an interest on the loan amount that you borrow.

-Provide the Interest Rate: Fill out the rate of interest charged by the lender for the loan amount. The rate of interest is the additional sum of money that you must pay. It depends on your CIBIL score, the lender, etc.

-Select the Loan Tenure: Tenure is the duration for which you want to take the loan. Specify the tenure in months or years as required. A lower tenure means you pay lesser interest. However, it also means that you will pay higher monthly instalments.

-Click on “Get Price”: Once you fill in all the details, click on the “Get Price” button that appears below the calculator. Once you click on the button, you will get the EMI amount based on the loan amount, interest rate, etc.

-Accuracy

TATA AIGs new car EMI calculator is curated based on a mathematical formula. It gives you accurate results and shows the precise amount of interest and EMI that you would have to pay over the loan’s tenure.

-Facilitates Comparison

By using the calculator, you can compare multiple loan options from different lenders with varying rates of interest. The calculator allows you to weigh the pros and cons of different loan options and select the best out of all.

-Easy Interface

Though the car loan EMI calculator involves a complex calculation, TATA AIG keeps it simple and easy for the users. Just by filling out the values in the respective fields, you can get an accurate estimation of the loan EMI, interest and the total amount.

-Enables Financial Planning

The calculator enables you to do appropriate financial planning and adjust your expenses to accommodate the EMI payments for new car loans. Thus, you can be better prepared to repay the loans without any defaults.

-Time Saving

Calculating EMI for a car loan is very complex and time-consuming. However, the calculator gives you all the answers instantly. By using the calculator, you can save a lot of time and invest it in financial management and planning for the future.

Taking a car loan may seem the easiest way to finance your car purchase. However, it involves a very complex structure to ensure that the borrower or lender does not suffer any losses.

A few aspects of a new car loan such as the loan amount, loan tenure, interest rate and EMI have been discussed above. Here are some other crucial aspects/components of a car loan that you must know:

-Processing Fee

A processing fee is a small charge levied by the lender or financial institution for processing your car loan. It involves charges for the administrative work that is required for assessing the loan application, processing, etc. This fee is usually non-refundable. In some cases, the lender may waive the processing charges as a part of a special offer.

-Payment/Preclosure

Preclosure refers to the early or prepayment of the loan, i.e. before its actual tenure. If you wish to pay a part of the loan or the entire loan amount at once, the lender charges a penalty, which is a percentage of the principal amount.

Many lenders allow a preclosure of the loan after you have 12 EMIs. However, it is advisable to repay the loan with EMI payments as it improves your credit score.

-Foreclosure of Car Loan

When you take a car loan, the car acts as collateral security with the bank or lender. If you default on the EMI payments, the car is repossessed by the lender and is put up for auction to recover the remaining balance.

-Types of Car Loans

-New Car Loan

A new car loan is a beneficial option if you want to purchase the latest model/variant of your favourite vehicle. Banks and financial institutions lend up to 90% of the car’s on-road price. Thus, you only have to pay the remaining 10% from your pocket immediately.

-Used Car Loan

If you are on a budget and wish to buy a vehicle, you can consider a pre-owned car loan to purchase a decent vehicle. Financial institutions assist borrowers with up to 75% of the car’s price. Also, the car serves as a security until you have paid all the loan dues.

-Loan Against Car

A third type of car loan exists, which is called loan against car. This type of loan assists you to arrange finances to buy a new car. You can use this loan amount to purchase a new or second-hand car. The amount of loan varies from one lender to another.

Keeping a few important factors in mind before availing of a car loan will help you to make thoughtful financial decisions.

-Research

Researching and finding all the details relating to a new car loan, such as the loan amount, the rate of interest charged by lenders, terms and conditions, etc., is very crucial. It assists you to make the right decision.

-Choose the Repayment Tenure Wisely

It is crucial to select the right payment tenure as it directly impacts the EMI. You can use our new car loan EMI calculator to find the right tenure and an EMI that fits your monthly budget.

-Compare Different Lenders and Rates

There are multiple financing options in India, such as banks, non-banking financial institutions, online lenders, etc. You must compare the different lenders, their credibility, rate of interest, etc., to get the best deal for your car loan.

-Your Credit Score

Before applying for a loan, it is crucial to know your CIBIL score. Most lenders require you to have a CIBIL score of 750 or above. Thus, if your score is less than the minimum requirement, it can lead to loan rejection.

-Choose the Right Loan Type

You can opt for multiple types of car loans in India. However, floating-rate and fixed-rate loans are the most popular ones. Depending on your requirements, budget and preference, you can choose the type that is most beneficial.

-Look For Offers and Schemes

You can take advantage of various festival offers made by the lenders. At times, they may offer a discounted interest rate or come up with a 0% finance scheme. It is a wonderful way to gain some benefit from car loans at such times.

If you wish to take advantage of a new car loan, TATA AIG is here to help you! With our new car loan calculator, you can find out the EMI, interest amount, etc. Taking one step further to assist you, we also provide a new car insurance calculator so you can fulfil the mandatory requirement of having a vehicle insurance.

Our calculator provides you with a premium quote for your car insurance. Additionally, it also allows you to customise your insurance by adjusting the IDV. With our calculator, you can save precious time and compare the premium offered by various insurers.

Buying the right car insurance policy is a breeze with our insurance calculator as you get instant premium quotes based on various factors. All you have to do is provide the requested details and get a quote.