Calculate your Car Loan EMI with SBI Car Loan EMI Calculator

Buying a new car is always an ecstatic experience irrespective whether it is your first car or you are replacing your existing one. A successful car purchase needs you to choose a suitable car, then negotiate a good price on it and finally fund the purchase in such a manner that it is most affordable. Unless one has a substantial amount of savings to pay upfront for the car, the only other option is to borrow money and for that one goes for a car loan. Choosing the right loan is extremely important and SBI car loan calculator helps in figuring out the EMI (Equated Monthly Instalment) amount that you are comfortable paying.

All major banks offer car loans at varying rates and you need to pay off for your vehicle purchase by making monthly payments. If you compare some of the common players in the car loan segment, you will find that SBI (State Bank of India) offers some great car loan products at very attractive interest rates. The SBI car loan also has the longest tenure of repayment option of 7 years in the market. If you opt for the car loan from SBI, you can get up to 85 percent of your vehicle price financed. You have to arrange THE remaining 15 percent on your own. This 85 percent value is of the on-road price, which includes the yearly maintenance contract, cost of accessories, insurance, extended warranty (if any) and registration charges. The paperwork is minimal here, which is an added benefit and there is quick disbursement of the loan. Anyone in the age group of 21 – 65 years can apply for it.

If you want to understand the loan repayment process thoroughly, you can make use of a simple tool called SBI bank car loan EMI calculator. Using this free online tool, you can calculate the exact amount of EMI.

How Does SBI Car Loan EMI Calculator Work?

You just need to input a few basic details and it instantly gives you the exact EMI amount almost instantly. Here’s how SBI car loan EMI calculator works.

  • Enter the amount you want to take as a loan.
  • Next, enter the loan tenure you want.
  • Input the interest rate.
  • Now click on the ‘Calculate’ button and immediately you will get the EMI amount. The SBI bank is currently offering car loan at 9.20 percent. If you use this interest rate and calculate the EMI, it comes out to be INR 4,580 for INR 1 lakh loan amount for a 2-year loan. The same reduces to INR 2,088 if you take tenure as 5 years.
  • If you want to see the entire amortization schedule, click on EMI Schedule. Any EMI consists of two components: the Principal and the interesting part. Using the SBI car loan interest calculator, you will get the entire amortization schedule along with the exact figures of principal and interest month on month for the entire duration. If you are confused on what an amortization schedule is, then it is the payment schedule of the total debt in a tabular format. It depicts the entire breakup of the principal, interest rate, the total amount paid after each installment and the outstanding balance.
  • However, if you want to check for some other loan amount or tenure, click on the Recalculate option. You can even make use of this amortization schedule to decide if it would make sense to prepay the loan amount. In case you want to foreclose your loan or prepay some of it, you don’t have to pay any penalty as SBI doesn’t charge any prepayment penalty or foreclosure fee for the car loan.

Features and Benefits of SBI Car Loan EMI Calculator

This tool is extremely useful. Some of its prominent features and benefits are:

  • It is extremely user-friendly and anyone can use it without any problem.
  • It can perform complicated calculations quickly by the click of a button.
  • The best part is that it is free to use. You can open your browser and make use of it on either the SBI website or some other website where it is available.
  • It provides the complete amortization table.
  • One can keep using the tool multiple times using different amounts and tenure of the loan until he or she arrives at the desired EMI amount that is most affordable to pay.
  • It makes you mentally prepared for the EMI amount that needs to be paid every month throughout the loan tenure.
  • There’s no chance of making any mistake in calculations, which is very common in case you choose to do manual calculations using the mathematical formula:
    EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1],
    Where P stands for the principal amount, R is the interest rate on a monthly basis, and N is the number of installments.

Additional Read: SBI Car Loan EMI Calculator Provides with Multiple Options for Loan Repayment


The SBI car loan calculator is a very simple tool that lets you know the exact amount of your monthly repayments. It even provides the loan amortization tables, which can be utilised in many ways. It helps in understanding the interest component you need to pay overtime and to analyse the debt repayment schedule over a period of time. It is also handy in case you plan to prepay or foreclose the loan. Using it, one can figure out if foreclosing or prepaying makes sense or if it’s just a futile exercise.

Author Since: Jan 17, 2019

Anoop Bansal, a professional Chartered Accountant based in the National Capital - Delhi. I have worked for the top-notch Indian and International banking firms for the past 10 years. Currently, I work at blog and a financial consultant for different SMEs in India. Follow me on Facebook, Twitter and Linkedin for more information.

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