Maximum Amount of Car Loan you can get out of monthly spare funds
available for EMI

So you have some amount to spare for EMI every month. Click here to find out how much Car Loan you can get from that spare amount.
Amount spare for EMI
No. of Years
Year
Interest Rate
%

You can get car loan of
at an EMI of

Introduction

So you have some spare funds available every month. You wish to buy a car & also take a low interest car loan. You have come to the right place. First you can see how much auto loan amount you can get using the spare funds to be paid as EMI. Then you can choose from the best offers available from the site & go for the lowest interest best car finance for your next car purchase.

The need for this Car Loan Amount Calculator

Financial Calculations are always difficult. Even the Bankers move with a sheet with tonnes of numbers written on it. So we thought why not make a calculator where you can reverse-calculate the car loan amount you can get. This way you just have to know how much amount you can pay as car loan EMI every month. That’s it. The rest is done by the calculator. But beware! You think that you can spare this much of amount for EMI every month, the Bank may or may not agree to what you think.

How to use this calculator

Yes we know you know the terms used in this calculator, this article & can easily use this calculator. But to lesser mortals, we have to explain the same.

AMOUNT YOU HAVE, TO SPARE FOR EMI: Put in the amount of funds spare with you that can be used to pay the Car Loan every month. Say you earn Rs.50000 every month & after all the savings & expenses, you have Rs.10000 excess every month that according to you can be spared for Car Loan EMI.

NO. OF YEARS: Here you select the tenure of the loan you feel is comfortable for you – 3 years or 5 years. We have put the default value at 5 years which is what mostly the vehicle owners go for whenever they are taking a car loan.

INETREST RATE: Enter here the current offer in the market for the best interest rate. You can check offers on our site to enter the new interest rate. Default value we have put here is 10% which we believe is much closer to the prevailing interest rates in the market.

What you get as an answer is a close approximation of the car loan amount you can take from the market from Bank. If you would look around slightly on this page, you can find offers on Car Loans. Choose from one of them, get door-step service & save money. Then go on a long drive for a holiday and make your family happy.

Car Loan explained in detail

This is going to get technical. Don’t tell me I didn’t warn you! However, there are a few things that you need to know.

Ex-showroom & On-Road Price

I am sure if you have reached till here in the article, you already know the difference between ex-showroom price & on-road price. Still for academic purpose, ex-showroom price of a car excludes the local (state) taxes & statutory charges. On-road price, however, is a different animal all together. It includes cost of registration, octroi, road tax, insurance, and all other taxes or charges depending on state-to-state, car company-to-car-company, dealer-to-dealer. You can squeeze some value out of this price.

Advance EMI or not

Now this one is the best – a Bank official comes to you & offers lower EMI on your car loan. Everything looks the same but he insists on taking an advance EMI. You don’t feel it is too much. But as I told you earlier, finance calculations are difficult.

EMI of a 10% 5 year loan with Advance EMI = EMI of a 9.65% 5 year loan without Advance EMI.

So whenever you are given an offer of advance EMI that may look like a reduced EMI on similar interest rate – WATCH OUT – you are just being ‘number-hunted’.

0% Car Loans

While I was writing this article, a mail for 0% finance landed in my mailbox. I laughed. What an eye-wash – there is nothing like a free lunch. They would somehow make it from you in one way or the other. Lesser discounts, compulsory insurance from them or the likes.

Pre-payment Penalty

Look out for the Bank that doesn’t charge a pre-payment penalty. Often one takes a car loan for 5 years, often one feels the need of pre-paying it. Apart from ability to pay back the loan that one develops over the period, there is another very critical reason associated to it.

EMI on 3 year Car Loan of 5 lacs = EMI on 20 year Home Loan of 12.5 lacs.

So you see, you may encounter a scenario where when you go for buying a house, the banker tells you that major portion of your eligibility is blocked by a car loan which is ending soon but is blocking your EMI paying eligibility so you have no other choice but to clear off the car loan to make way for a longer duration and more necessary Home Loan.

Document List

Documents required for Car Loan

Salaried

Self Employed Professional

Self Employed Non Professional

Application form

Y

Y

Y

KYC

 

 

 

Photographs

Y

Y

Y

Identity Proof

Y

Y

Y

Address Proof

Y

Y

Y

Age Proof

Y

Y

Y

Bank Statements

Y

Y

Y

Signature Verification

Y

Y

Y

Income Proof

 

 

 

Latest Salary Slip / Form 16

Y

 

 

Income Tax returns of 2 previous financial years along with complete financial/audit report.

 

 

Y

Income Tax Returns of 2 previous financial years.

 

Y

 

Other Documentation

 

 

 

Business Stability proof / Ownership proof

 

Y

Y

Employment Stability Proof

Y

 

 

Partnership deed and Letter signed by all partners authorising one partner

 

 

Y

Companies and Societies: Resolution by Board of Directors (or such managing body) and Memorandum and Articles of Association

 

 

Y

Disclaimer

The data generated herein is completely and solely based on the information/details provided by you in response to the questions specified by the site BankerBhai.com. Such information and the resultant data is provided only for user's convenience and information purposes. BankerBhai.com does not guarantee accuracy, completeness or correct sequence of any the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness / accuracy. The use of any information set out is entirely at the User's own risk. User should exercise due care and caution (including if necessary, obtaining of advise of tax/ legal/ accounting/ financial/ other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained / data generated herein. The information contained / data generated herein may be subject to change, updation, revision, verification and amendment without notice and such information/data generated may change materially.


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