Car Loan EMI Calculation: The Reserve Bank of India (RBI) on Friday announced to reduce the policy rate repo rate from 0.25 percent to 6.25 percent. There is a wave of happiness among customers taking home loan from cuts cuts. This is because the cuts in interest rates after about five years are considered to be reduced on these loans (EMI). Apart from this, the monthly installment of home loan and personal loan will also decrease. Let us know from Car Loan EMI Calculator that if you have taken a loan of Rs 5 lakh for 5 years, then how much your loan EMI will be reduced after your interest rates decrease.
Understand eMI calculation
Loan Amount: Rs 5 Lakh
Loan Tenure: 5 years
Interest Rate: 9.20% annually
EMI: Rs 10,428
Interest in total tenure: Rs 1,25,667
Total Payment: Rs 6,25,667
Loan Amount: Rs 5 Lakh
Loan Tenure: 5 years
Interest Rate: 8.95 % annually (rate after 0.25 % decrease)
EMI: Rs 10,367
Interest in total tenure: Rs 1,22,023
Total Payment: Rs 6,22,023
(Note: This calculation is based on SBI car loan EMI calculator.)
EMI, how much benefit in interest?
Car loan EMI calculation is clear from the Car Loan EMI calculation that your EMI will reduce Rs 61 due to the reduction of interest rates by 0.25 per cent. At the same time, now if the interest rates of your car loan remain stable for the next 5 years, then you will now have to pay less interest in the entire tenure of Rs 3,644.
Customers taking car loan at floating interest rate will benefit
The car can be charged on the loan fixed or floating rate, it depends on the choice of customers. The fixed interest rate does not change during the loan period, while the floating rate can go up or down according to the change in the repo rate. Therefore, the interest rate on the car loan will also decrease due to currently cuts in interest rates.