SBI Car Loan EMI Calculator Provides with Multiple Options for Loan Repayment
Getting a car loan is becoming easier for Indians with SBIs loan offers with low-interest rates. With this facility now available, more and more people can now afford to have a personal four-wheeler as against a two-wheeler to travel comfortably with their families. By providing a car EMI calculator, SBI has made it easier for its potential customers to plan ahead for owning a car. They can know the amount that they would need to save for the EMI from their monthly budget and still be able to manage their household expenses.
There are similar calculators available for home loan customers. You can use home loan calculator excel or manual methods for the same purpose i.e. to calculate the EMI. There is also a home loan tax benefit calculator, which makes you aware of the tax that you pay and how you can save some of it by purchasing a car.
In the following sections, let’s get to learn more about SBI car loan EMI calculator.
What Is SBI Car Loan EMI Calculator?
SBI car loan EMI calculator is a tool, which is available online. It can calculate the EMI to be paid if you enter the loan amount, the rate of interest and the tenure of the loan in the required fields. Along with the EMI, it also gives you a detailed chart of payments on a monthly basis with the breakup of the loan amount and interest amount payable in each month. This is particularly helpful for the applicants to understand how and when they are being charged the interest on the loan. They can plan their payments in advance with the chart for reference.
How Does the Calculator Work?
To calculate the EMI for the loan that you might be planning to take, you need to access the online EMI calculator on the website. You will see three fields where you need to enter the respective values.
The first one is the loan amount. Here, you should enter the amount that you wish to borrow from the bank. This will depend on the value of the car and your eligibility criteria. You can use the SBI car loan eligibility calculator to get the maximum loan you are eligible for. The second field is the rate of interest. This is generally fixed for a slab of loan amount. The third field is the time in which you will repay the loan. The maximum time period for this is fixed at 7 years. Once you enter these variables, you will get the calculation of EMI instantly.
How Does the Calculator Help the Consumer?
When you know the EMI that you are charged for a certain loan amount at a particular rate of interest and time period, you can figure out whether it is affordable for you or not. If it is lower than your budget, you can try calculating the same for a higher loan amount or a shorter payment schedule. Likewise, if it is beyond your budget, you can reduce the loan amount or increase the tenure. You can fix an EMI, which is comfortable with your planned budgeting. You can also recalculate the EMIs using Car Loan EMI Calculator in case you wish to make a larger payment at any point.
How Does the Payment Schedule Help?
When you increase the tenure with the purpose of reducing the EMI, you must look at the payment schedule and the interest component that you pay over the years. You will realize that it increases as the tenure increases and it could also be much more than the principal loan amount. Think carefully on this aspect when deciding on the tenure.
How Is the Interest Calculated in an EMI?
The interest is calculated on the total outstanding balance for that month. Initially, the interest component is higher and it reduces as the installments get paid. As the interest component decreases, the value of the principal component starts increasing as the total of both these amounts is the fixed EMI. If you make a pre-payment, the interest gets reduced. This can affect your payment schedule in two ways – either by reducing the EMI or by shortening the tenure of repayment.
What Are the Benefits of Using a Car Loan EMI Calculator?
There are multiple benefits:
- It is easy to use and simple to understand.
- Anybody with some knowledge of computers can also use it.
- It is a free tool.
- It calculates the EMI with speed and accuracy.
- You need to provide only the basic details in terms of amount, rate and tenure
- It helps you plan your monthly expenses and hence the EMI that is affordable and compatible with your income.
- It gives you the details of the interest and principal components of the EMI.
- It also gives you the chance to recalculate your EMI after you make a part payment or pre-payment.
- It avoids unnecessary visits to the bank
More about SBI Car Loans
SBI car loans are very affordable as a result of the low-interest rates offered. It is easy to apply for the loan with minimum hassles. All you need to do is apply for the loan online and submit documents to prove your eligibility criteria. These documents are generally related to proof of identity and proof of residence. You also need to prove your capability of repaying the loan. For this reason, you need to submit documents showing your financial status, your bank statements, your IT returns, and proof of income.
Once you have submitted the documents, your loan is processed for the chosen tenure between 3 and 7 years. The rates can vary depending on your credit score and existing relationship with the bank.