Axis Bank Car Loan EMI Calculator

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Axis Bank was formed in 1994 and was jointly promoted by Specified Undertaking of Unit Trust of India (SUUTI – formerly known as United Trust of India), General Insurance Corporation of India (GIC), Life Insurance Corporation of India (LIC), National Insurance Company Limited, The Oriental Insurance Company Limited, The New India Assurance Company Limited and United India Insurance Company Limited. It is headquartered in Ahmedabad. At the moment, the Axis Bank is the third-largest private sector bank in the country and offers a host of finance option, including new car loans. It operates through a network of more than 3,120 branches spread across the country.

How Does Axis Bank Car Loan Calculator Work?

All the available car loan EMI calculators in the market work on a standard formula and same is the case with the Axis Bank car loan calculator. It figures out the EMI using the below formula –

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]

Where,

‘P’ stands for the Principal amount

‘R’ stands for the monthly rate of interest

‘N’ stands for the number of instalments

It is important to understand here that the formula that has been provided above doesn’t account for the pre-payment that one can make towards the loan taken from Axis Bank.

Axis Bank Car Loan EMI Calculator India 2020

Thanks to the several finance options that are available, today, buying a car is almost within the reach of many. One can simply avail a new car loan from Axis Bank and drive home his or gear dream car. Currently, Axis Bank offers new car loans at a rate of interest ranging from as low as 8.80%. It also charges a fairly low processing fee and offers a repayment tenure of up to 7 years. Not just this, it even offers a higher loan-to-value ratio, with up to 100% on-road price funding. Axis Bank offers car loans to not just salaried employees but even to proprietorship firms, partnership firms, companies, trusts, and societies.

I order to make the loan repayment easy, all banks offer the EMI (Equated Monthly Instalment) facility. Therefore, before you apply for a car loan, you need to plan things efficiently. And this is where the Axis Bank Car Loan EMI calculator comes in hand. At the moment, the new car loan interest rates that the Axis Bank offers is 8.8% to 11.05%. However, at 9.5% rate of interest, the EMI per lakh for the total amount comes out to be Rs 8,768 for a 1-year loan and Rs 4,591 for a 2-year loan.

Axis Bank Car Loan Features

• Only those who are at least 21 years old can borrow money to purchase a car from the State Bank of India. Also, the loan applicant must be not more than 65 years old at the time of applying.

• The maximum car loan amount that Axis Bank offers is upto 100% of on-road price.

• Interest rates for Axis Bank car loan are a minimum of 8.8 per cent and they increase based on the down payment, borrower’s net income and other factors like tenure and the amount being borrowed.

• At present, the car loan processing fee in Axis Bank is 1% of the loan amount or Rs 6,000 (whichever is lower).

Axis Bank Car Loan EMI Calculator Tenure

• In the table that we have given below, you can see the EMI for various loan amounts borrowed at a flat rate of interest of 7 per cent. As can be observed the EMI changes as the tenure of the loan changes from 2 years to 7 years.
• The EMI is higher when the loan tenure is shorter. However, the interest paid is higher if the tenure is longer.
• It must be noted here that the EMI you are liable to pay to the bank comprises both the principal component (a fraction of the borrowed amount) and the interest that is applicable at the decided rare of interest at which you borrow the money. While the EMI remains the same throughout the loan period, the interest component of every EMI differs. It’s the highest in the first EMI you pay and reduces with every instalment.

EMI Calculator to calculate your interest on vehicle loan at different tenure

The table we have given below shows that longer the loan tenure, lower. is the EMI you need to pay to the lender every month. However, the interest you end up paying is considerably more for a given amount in case your loan tenure is longer. For example, if you take a loan of Rs 1,00,000 for a period of 5 years, you need to pay the lowest EMI of Rs 2,028. However, you end up paying Rs 21,658 in interest on a loan of Rs 1,00,000.

On the hand, in case you borrow Rs 1,00,000 from State Bank of India at the lowest available rate for a period of 2 years, you end up paying a higher vehicle loan EMI of Rs 4,523, while paying an interest of just Rs 8,546, which, in contrast, is less than half of what you would pay for the same loan amount borrowed for a tenure of 5 years.

Factors affecting Axis Bank Car Loan EMI

For any car loan, there are in all three factors that affect the EMI of the car loan taken from Axis Bank. The same has been given below –

• Amount Borrowed – Basically, higher the loan amount, higher will be the EMI. Also, it must be mentioned here that Axis Bank offers a maximum loan of up to 100 per cent of on-road price of the car.

• Interest rate – Another important factor is the interest rate at which Axis Bank gives you the car loan. Obviously, a higher interest rate will translate into a higher EMI over a given time period. At present, the lowest interest rate offered by SBI is 8.8 per cent.

• Loan tenure – A loan tenure is the number of years you take a car loan for. At Axis Bank, the largest possible loan tenure is of 7 years. It is important to mention here that larger the loan tenure, lower the EMI. However, you do nd up paying more interest over longer loan tenure periods.

Axis Bank Car Loan Amortization Calculator

For the uninitiated, an amortization schedule is nothing but a periodic table of regular loan payments that show the borrower about the principal component and interest component of every EMI that he has to pay until the loan is paid back completely. It is important to note here that EMI is a fixed sum that comprises of a fixed principal amount and a fixed interest. For example, in case you borrow Rs 2 lakh for 2 years at an interest rate of 9.25 per cent, the EMI for this loan amount will be Rs 9,160. The total annual EMIs that are required to be paid is Rs 1,09,919. The table we have below shows the EMI schedule for 2 years –

Axis Bank Car Loan Calculator Formula

All available car loan EMI calculators work on the same forumla, which is –

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]

Where,

P stands for the principal amount (basically the money you borrow)

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the loan tenure of loan in months

E is the EMI (equated monthly payment)

Axis Bank Car Loan Tips

Before going ahead and applying for a used or new car loan at Axis Bank, the below factors should be considered very seriously –

• Decide the amount you must borrow: One should have an accurate estimate of the loan amount he or she needs to take before approaching the bank. The decided amount should be based on how easy it will be for you to pay back the money after accounting for your monthly expenses and financial requirements.

• Calculate your Axis Bank car loan eligibility: Your loan application can be rejected if you try to borrow more than your eligibility. This eligibility is calculated as per the borrower’s repayment capacity based on the monthly income. Basically, there are two ways to decide the borrower’s eligibility.

Multiplier based loan amount eligibility – Axis Bank calculates the loan eligibility by applying a multiplier to your net take-home income. In most cases, the result turns out to be 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. Also, this multiplier is calculated based on your employer company’s reputation, stability, size and growth in turnover.

FOIR based loan amount eligibility – The Axis Bank even calculates your Fixed Income to Obligations Ratio (FOIR) to get to know the maximum EMI you can pay on basis of your current income and other monthly expenses. The proportion of fixed income to your calculated fixed obligations gives your FOIR. In most cases, banks are known to lend up to a maximum FOIR of 0.50.

Axis Bank Car Loan EMI Prepayment

If you intend to pay back your car loan before the loan tenure gets over, you will need to pay a small penalty to the Axis Bank. It charges a part pre-payment penalty of 5 per cent on the outstanding principal. Axis Bank allows prepayment of a car loan after you’ve paid the first EMI. Through prepayment, you can reduce your loan tenure by paying the EMI for a shorter time period.

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