Multiple people view automobile purchases as a decisive achievement in their lives. Customers have two options for financing their preferred vehicle so either they opt for upfront payment or they pursue a car loan. By getting a car loan a person can obtain their desired vehicle without requiring full upfront payment. The process of understanding EMI calculation for a car loan requires knowledge about the multiple factors determining the monthly instalments, loan term effects, and most importantly car loan interest rate.
This article, we will be analyzing 10 lakh car loan EMI for 7 years and 10 lakh Car Loan EMI for 5 years payments by examining multiple lending periods together with interest rates and presents the best solutions to obtain your desired vehicle.
What Factors Influence the EMI for a Car Loan?
The following section provides crucial information about 10 lakh car loan EMI calculations because these elements affect how much the monthly payment costs.
Loan Amount: The sum of borrowed funds represents the loan amount which the lender provides to you. We examine a loan amount of ₹10 lakh in this situation.
Interest Rate: A client must pay car loan interest rate at the assigned rate the lender applies to their borrowed loan amount. Rate determinations for loans rely on the consideration of three conditions your credit standing, your monthly earnings and institutional funding guidelines.
Loan Tenure: The duration during which a borrower obtains the loan defines its loan tenure. When you extend your loan period the EMI payments become lower but the total interest payment will increase.
Processing Fees: Most lenders will increase the loan total by adding processing fees during application. The required fee consists of a percentage of the loan total.
This section introduces EMI calculation methods for 10 lakh car loans with various interest rates and loan durations under consideration.
10 Lakh Car Loan EMI for 7 Years
If you are running low on budget and want to pay less monthly EMI for your dream car, then you can opt for 10 Lakh car loan for 7 years of duration. In this cycle of car financing, you will less a comparatively low amount of EMI over a span of seven years. However, the total interest charged will be on the higher side.
So, let’s calculate your 10 Lakh cost of car for the seven years of duration.
Here’s the formula, you need to consider
EMI= P x r x (1+r)n/(1+r)n -1
Based on the above formula, here’s the calculation for you.
- P = Principal Loan Amount (₹10,00,000)
- r = Monthly interest rate (Annual interest rate / 12) = 9% / 12 = 0.75% or 0.0075
- n = Loan tenure in months (7 years = 84 months)
So, based on the above calculation, your EMI for a 10 Lakh car loan for 7 years, calculated on the basis of 9% rate of interest would approximately be ₹15,725.
Certainly, the monthly EMI amount you pay for the next seven years will be on the lower side. Still, rate of interest might be high. Therefore, it is essential on your part to check for the interest charges with your loan lending partner and lower the cost of your car ownership.
10 Lakh Car Loan EMI for 5 Years
The second option of owing a 10 lakh worth of dream car in India is going for another financial option, i.e., paying EMI for 5 years. In India, a majority of car owners prefer to opt for 5-year EMI term for financing their dream vehicle. Reason behind is the shorter tenue with an average interest rate charged from your side.
Just like the above, let’s calculate the 10 lakh Car Loan EMI for 5 years on the same set of 9% interest charges.
EMI= 10,00,000 × 0.0075 × (1+0.0075)60 /(1+0.0075)60 -1
So, based on the above set of calculation, you will pay a monthly EMI of approximately 20,567, when opting for a 10 lakh Car Loan EMI for 5 years. In this case, car loan EMI might be on a higher rate, but the interest rate you pay will be on the lower side.
What is the EMI for 10 Lakh Car SBI?
One of the most asked questions by people, looking forward to financing a car is knowing what is the EMI for a 10 lakh car SBI loan. Well, there is nothing to feel astonished about because most individuals rely on the government-led SBI bank to finance a car at a lower interest charge. Its one of the most trusted financial institutions, relying heavily for car loans. This bank offers competitive interest rates along with flexible terms and conditions.
So, if you want to know what is the EMI for 10 lakh car SBI loan with a rate of interest of 8.7% per annum, then refer to the following:
- The EMI for a ₹10 lakh car loan with SBI for 7 years at 8.7% interest rate would be approximately ₹15,460.
- The EMI for a ₹10 lakh car loan with SBI for 5 years at 8.7% interest rate would be approximately ₹20,457.
Factors to Consider Before Taking a Car Loan
Prior to applying for a car loan, there are some important things to keep in mind:
Interest Rates: As shown above, the interest rate is an important factor in determining the EMI. A slight variation in the rate can cause a huge variation in the interest paid over the loan period.
Loan Tenure: Longer tenure implies smaller monthly installments but higher interest paid over the period. Opt for a tenure that suits your cash flows and repayment ability.
Prepayment Options: Certain car loans permit you to pay prepayments to trim down the principal amount and, consequently, the EMI. Check with the financier if this facility is available.
Processing Fees and Other Charges: Do not miss including processing fees, documentation fees, and other hidden charges, if any, that the loan is associated with.
Credit Score: Your credit score affects the interest rate that you get offered. The better your credit score, the lesser is your interest rate, cutting down on your EMI.
Apply for Car Loan with BIR Credit Solution
BIR Credit Solution is a reliable financial services company that deals in convenient car loans customized to suit your requirements. With a focus on making car ownership easy and convenient, BIR Credit Solution provides competitive interest rates, flexible payment schedules, and a fast approval process.
Whether you purchase a new or used vehicle, their professional team makes the loan process hassle-free with clear terms and minimal documentation. Getting a car loan from BIR Credit Solution means availing yourself of sound financing, superior customer care, and an easy path to driving your dream vehicle. Take control of your future with confidence today!
Conclusion: Finance Your Dream Car with Bir Credit Solution
Dreaming of buying a car is everyone’s desire, but the cost involved can be rather stressful. Whether you are on the lookout for 10 lakh car loan EMI for 7 years, or 10 lakh Car Loan EMI for 5 years, it’s best to select the proper finance product that would work best for your pocket and future goals. Where it concerns financing your dream vehicle, Bir Credit Solution is the perfect platform. Bir Credit Solution provides competitive car loan interest rates, convenient loan tenures, and great customer service to ensure you get the best car loan offer. Through their simple application process and tailored loan plans, you can have the car of your dreams without any inconvenience.Don’t let the financing discourage you. Select Bir Credit Solution today and realize your dream automobile.
