Bank of Baroda Car Loan EMI Calculator
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Bank of Baroda Car Loan EMI Calculator

Team CARS24
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Headquartered in Vadodra, the Bank of Baroda is an Indian-government-owned banking and financial services company that is the third-largest government bank in the country. It has over 131 million customers and a business value of USD 218 billion. It even has 100 overseas offices, and as per 2019 data, it’s ranked 1145 on the Forbes Global 2000 list. If you plan to get a car loan, you should first figure out the EMI you will have to pay, and for this, you can avail of the service of the Bank of Baroda Car Loan EMI calculator.

How Does Bank of Baroda Car Loan EMI Calculator Work?

All EMI calculators, including the Bank of Baroda car loan EMI calculator, work on a standard formula. Through this calculator, you can figure out the EMI you will need to pay to the bank at a given rate of interest for a certain loan tenure. The formula on which Bank of Baroda car loan EMI calculator works is given as follows –

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

Here

‘P’ stands for the Principal amount

‘R’ stands for the monthly rate of interest

‘N’ stands for the number of instalments

It needs to be mentioned here that the formula that has been given above doesn’t take into account any pre-payment.

Bank of Baroda Car Loan EMI Calculator India 2021

Bank of Baroda offers a monthly EMI of as low as ₹ 1,526 per lakh. One can opt for a loan period of up to 7 years, and currently, the lowest car loan interest rate is 7.35%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,493 for a 2-year loan and ₹ 1,997 for a 5-year loan. As seen below, for a loan amount of ₹ 12 lakh, the EMI turns out to be ₹ 53,918 for a loan period of 2 years, ₹ 28,931 for a period of 4 years, and ₹ 18,317 for a period of 7 years.

Loan Amount2 Year Loan4 Year Loan7 Year Loan
₹ 3 Lakh₹ 13,479₹ 7,233₹ 4,579
₹ 6 Lakh₹ 26,959₹ 14,465₹ 9,159
₹ 12 Lakh₹ 53,918₹ 28,931₹ 18,317

Bank of Baroda Car Loan EMI Calculator – Features and Benefits

The Bank of Baroda Car Loan EMI Calculator can be put to use totally free of cost. It can easily perform large and complicated calculations within a second, which means you don’t need to perform such tricky calculations and even avoid a high risk of inaccuracy. The salient features of the EMI calculator of Bank of Baroda Bank include:

  • The prepayment option on the EMI calculator can be used to find out the effect that the prepayment would have on the EMI.
  • Free of cost.
  • User-friendly.
  • Can provide a breakup of the loan
  • Provides accurate results within seconds.
  • The calculator can be used several times to compare different rates of interest

Bank of Baroda Car Loan EMI Calculator Tenure

In the table provided below, one can have a look at the EMI for multiple loan amounts taken at a hypothetical rate of interest of 7 per cent. As you can see in the table given below, the EMI changes as the tenure of the loan changes from 2 years to 7 years.

  • Basically, the EMI is inversely proportional to the loan tenure.
  • However, the interest one pays is higher if the loan tenure is higher.
  • The EMI one has to pay comprises of the principal component as well as the interest that is payable at the decided rate of interest. 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.
  • Basically, the EMI is inversely proportional to the loan tenure.
  • However, the interest one pays is higher if the loan tenure is higher.
  • The EMI one has to pay comprises of the principal component as well as the interest that is payable at the decided rate of interest. 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 clearly shows that the loan tenure is inversely proportional to the EMI you have to pay. However, the interest is directly proportional to the loan tenure. For instance, in case you take a loan of Rs 1,00,000 for a period of 5 years, you need to pay the lowest EMI of Rs 1,957. However, you end up paying Rs 17,397 in interest on a loan of Rs 1,00,000.

Loan Amount2 Years3 Years5 Years7 Years
1 Lakh₹ 4,493₹ 3,104₹ 1,997₹ 1,526
3 Lakh₹ 13,479₹ 9,311₹ 5,990₹ 4,579
5 Lakh₹ 22,466₹ 15,519₹ 9,983₹ 7,632
10 Lakh₹ 44,931₹ 31,037₹ 19,967₹ 15,264

As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.

Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

Factors affecting Bank of Baroda Car Loan EMI

  • Amount Borrowed – Higher the loan amount, the higher is the EMI. It must be noted here that Bank of Baroda offers a maximum loan of up to 90 per cent of the ex-showroom price of the car.
  • Interest rate – Another important factor is the interest rate at which Bank of Baroda gives you the car loan. As is easy to understand, a higher interest rate leads to a higher EMO over a given time period. Currently, the lowest interest rate offered by Bank of Baroda is 6.5%.
  • Loan tenure – A loan tenure is basically the period in which you have to repay the car loan. At Bank of Baroda, you can get a car loan for a maximum of 5 years. It should be noted here that the larger the loan tenure, the lower will be the EMI but higher the interest paid.

Bank of Baroda Car Loan Amortization Calculator

An amortization schedule is the table of regular loan payments that you need to make with every EMI. It also shows the total principal component and the interest paid with every EMI. While every EMI you pay is a fixed sum, the principal amount and the interest components are not fixed. With every passing EMI, the principal component increases and the interest amount reduces.

Bank of Baroda Car Loan Calculator Formula

The standard formula on which all the car loan EMI calculators work is –

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

Here,

P is for the principal (money borrowed)

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)

Bank of Baroda Car Loan Tips

  • Decide the amount required: First, decide the loan amount for which you need to apply. While you might be tempted to go for a higher loan, make sure you borrow only as much as you can easily pack back through EMIs.
  • Know your Bank of Baroda car loan eligibility: If you don’t know if you are eligible to borrow a certain loan amount and straightaway apply for a loan, your loan application can be rejected. Therefore, you must know your eligibility. This eligibility is calculated as per your repayment capacity based on the monthly income. Below are a few ways to get to know your eligibility.

Multiplier based loan amount eligibility – Bank of Baroda 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 – Bank of Baroda 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.

Multiplier based loan amount eligibility – Bank of Baroda decides the loan eligibility of the borrower by applying a multiplier to the net take-home income. The result is 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. That said, the multiplier is decided as per the employer company’s reputation, stability, size and growth in turnover.

Bank of Baroda Car Loan EMI Prepayment

If you decide to return the borrowed amount to bank ahead of its maturity period, most banks charge a small fee that is known as a prepayment penalty. Bank of Baroda allows prepayment after paying of the first EMI. A good part here is that there are no prepayment charges levied by the Bank of Baroda on car loan.

FAQs

Q: Why should I calculate Bank of Baroda loan EMI before taking a loan?

A: You should calculate your car loan EMI before applying for a loan due to the below reasons –
– If the loan EMI comes out to be so high that it will affect your necessary expenses, it’s better to take a smaller loan that you can easily repay through EMIs.
– In case you already know the EMI, you can plan your spending in a much better way.
– Based on the EMI, you can plan the prepayment easily.

Q: What is the lowest EMI per lakh offered by Bank of Baroda on Car loan?

A: The lowest EMI per lakh offered by Bank of Baroda car loan is ₹ 1,594 calculated at the lowest rate of interest of 7.35%.

Q: Can I prepay my Bank of Baroda car loan?

A: Yes, you can prepay your Bank of Baroda car loan after payment of the first EMI. This bank doesn’t levy any prepayment penalty.

Q: Is there any processing charge on car loan from Bank of Baroda?

A: Bank of Baroda charges a processing fee of 0.75% of loan amount (capped at a maximum of ₹ 10,000).

Q: Will I get the car loan from Bank of Baroda if I have a bad credit score?

A: For getting a loan from Bank of Baroda, one must have a good credit score of at least 700.

Q: How does a car loan repayment happen?

A: Car loan repayment happens through EMI (Equated Monthly Installment), which is a fixed sum of money you need to pay every month. While EMI stays the same throughout the loan cycle, the interest component decreases and principal component increase with every EMI you pay.

Q: Can I have a co-applicant while applying for a Car loan with Bank of Baroda?

A: Yes, you can opt for a co-applicant to take car loan from Bank of Baroda that will increase your car loan eligibility as the income of the co-applicant is also taken into account.

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