How to Calculate an EMI for a Car Loan

04 Apr 2021

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How to Calculate an EMI for a Car Loan

Most banks and financial institutions offer a range of car loan products these days, all available at competitive rates of interest. A convenient and straightforward way to get an idea of the amount of money you'll have to set aside each month is through an online calculator.

You have to pay off your Car Loan in Equated Monthly Instalments (EMIs) obligations, and an online EMI calculator helps you with an estimate. It becomes relatively easy to see how much your Car Loan EMI will cost you; all you need to do is enter the required loan amount and the interest rate at which the bank offers the loan.

However, it is essential to note that lender-specific charges like a processing fee or prepayment charges may be applicable


The interest on Bank of Baroda Car Loans is calculated on the daily reducing balance and is based on the applicant's credit score or CIBIL Bureau score. The minimum credit score required for the loan is 701. Moreover, the repayment period or tenure for car loans (maximum of 84 months) is determined by the EMI amount.

How Does a Car Loan EMI Calculator Work?

Bank of Baroda's online Car Loan EMI calculator is easy to use and reliable. This can be done before you purchase the car. The calculator is available on the bank's website, and it helps you calculate your estimated EMIs almost instantly. Here's how to calculate EMI on car loan using Bank of Baroda's EMI calculator:

- Enter the loan amount your wish to borrow

- Enter the rate of interest (typically starts at 8.60% p.a.


- Enter the tenure in months (with a maximum term of 84 months)

The formula to determine your Car Loan EMI amount

Besides an online car loan calculator, you can use a mathematical formula to calculate your monthly EMI.

E= PxR(1+R)^n/[(1+R)^n -1


P is the principal amount that you want to apply for
R is the rate of interest per month
n is the tenure of the loan in months
E is the monthly payment or EMI

Benefits of Car Loan EMI Calculator

Better financial planning: Once you know how to calculate the EMIs on Car Loan, you can better plan your family finances. Knowing how much you would have to set aside for your EMI dues allows you to afford a car without having to stretch your finances too thin.

Easy to use, time-saving: A relatively complex calculation is done in a matter of just a few seconds. The online EMI calculator is quite user-friendly too.

Result accuracy: All you have to do is give the numbers asked for, and you can be assured of an accurate result.

Compare different loan tenures and interest rate combinations: By entering the loan amount and different interest rates or loan tenures, you can determine how much EMI you can afford.

Car Loan EMI Calculator Questions

What if I am late in paying the car loan EMI


Lenders charge a penalty on delayed EMI payments, the amount of which varies from bank to bank.

Why is it necessary to calculate EMI beforehand?

It is essential to calculate your EMI in advance to maintain stability in future payments. When you avail of the car loan, you promise the bank to pay a fixed amount at a fixed date every month. Before availing of the loan, you should consider the stability of your income, monthly expenses and the existing loan obligations to avoid any discrepancies in future payments.

What is the maximum tenure for which a Bank of Baroda Car Loan is available, and does it affect my EMI?

A car loan can be availed for a maximum tenure of 7 years. The tenure affects your monthly EMI. The longer the tenure of the car loan, the lower will be your EMI

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How to buy a mobile phone on EMI using a Debit Card?

Did you know that it is possible to buy a mobile phone on EMI? Yes. It’s possible. All you need is a pre-approved customer to avail ‘On The Fly Debit Card EMI’ by Bank of Baroda, and the smartphone of your choice can be yours.
Buying a phone can be a costly affair these days. Some smartphones are expensive and we often have to end up saving to make the purchase or delay our purchase until we have sufficient funds. But now, with EMI offers on debit card, buying electronic goods and gadgets is easier than ever.
So, what are you waiting for? Go ahead and buy the smartphone on EMI using your Bank of Baroda debit card.
How does this process work?
Buying a smartphone on EMI using a debit card is simple and hassle-free process. Here’s how you can go about it

Debit Card EMI is live on 2 lakh+ POS devices of Pine Labs on reputed merchant outlet to buy the smartphone of your choice.
Choose your smartphone and proceed to make the payment using Bank Of Baroda debit card.
Select the EMI tenure between 3 months to 18 months.
Proceed to complete the payment.
The bank will process the conversion of your payment into regular EMIs
Your transaction is complete.

Features & Advantages
Buying your dream smartphone using Debit Card EMI is now easy, convenient and comes with a host of features. Check the list below to know more

Easy, accessible and convenient to use
Zero processing fees
No paperwork
Transactions up to Rs. 50,000 can be converted into easy EMIs
Users have access to over 100 brands, across 2 Lakh merchant outlets
Cashback Upto 16% is available on Brand EMI transactions
Rate of interest applicable is 16% p.a.

EMI by debit cards is an easy, convenient and affordable solution for buying high-value products, especially when you’re on a budget.
As more people make use of this facility to pay for smartphones and other electronic gadgets, EMI on debit card is rapidly evolving for affordability solution.

How to Claim Car Loan Tax Exemption ? | Bank of Baroda

Cars are considered a luxury product in India and many people avail loans to purchase their dream cars. But did you know that you can avail car loan tax benefit?
Yes, you read that right. Much like the education and home loan, car loan benefits in income tax. While cars purchased for personal use may not have car loan tax exemption, if you are a self-employed professional or business owner using the car for business purposes, you can claim exemptions. Loans on personal use cars are not eligible for tax exemption as cars are considered luxury products.
However, if you are a businessman/ woman and have taken a loan to buy a car for your business, you can claim the interest you pay as business expenses. The interest you pay in a year towards your car loan can be deducted from your taxable income. Apart from the interest deduction from taxable income, you are also eligible to claim tax benefits on the depreciation of your vehicle.
How to claim car loan benefits in income tax
In simple terms, if you are a business or are self-employed and you take a loan to buy a car for your business, you are eligible for tax deductions. How does tax rebate on car loan work?
For example, you own a business and have taken a loan for a car for your business. For this, you take a loan of Rs15 lakh at 12% for a year. Now let us assume your total taxable income, from your business, is Rs 25 lakh. You can then deduct 12% of Rs 15 lakh (Rs1.8 lakh) from your taxable income while filing your tax returns.
So when you are claiming tax rebate on car loan, deduct the interest you have paid towards your car loan in that year from your taxable income. The interest paid can be added as a business expenditure.
There are other ways to save taxes on car purchase, even if you have not sought a loan to buy the car. You can do so by showing your car as a depreciating asset for your business. You can add the depreciation as a business expense, too. The upper limit for depreciation is set at 15 % in a year.
For salaried individuals buying car for personal use, there is no car loan tax benefit. However, self-employed individuals or businesses can claim tax deductions for loan on car used for business purposes. While availing these tax benefits be sure that the car is being used for legitimate business purposes.

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