Monthly EMI

Principal amount

Total Interest

Total amount

Gone are the days when buying a car was an absolute luxury. The cost of the car made it unaffordable for most buyers. But today, a car loan has bridged this gap. There are lot of lenders, both banking and non-banking who offer car loans. However, when it comes to EMI calculation, you face confusion. We recommend that you check your EMI before you opt for a car loan. Don’t worry, it is not as complicated as it sounds. Punjab National Bank has an automated car loan EMI calculator which helps you see your monthly outflow in just a click. Know more about the car loans in India and how an Punjab National Bank Car loan EMI calculator exactly work.

## How does an Online Punjab National Bank Car Loan EMI Calculator Work?

An Punjab National Bank Car Loan EMI Calculator saves you from doing the manual calculations of estimating your car loan EMI. It requires only a few inputs to calculate your monthly instalment and payable interest amount.

**Car Loan Amount: **The amount of loan that you want to borrow from the lender. This depends on the market price of the car.

**Car Loan Tenure: **The repayment period you agreed with the lender to repay the borrowed amount.

**Interest Rate: **The applicable rate of interest charged by the lender on the car loan.

Based on these inputs, the car loan interest rate calculator will calculate and show you the EMI, total payable interest, and total repayment amount. You can also easily change the inputs and get results accordingly in real-time.

**How to Calculate Car Loan EMI Amount?**

CashZeni follows a standardised formula:

**E= P. R. (1+R)^n/[(1+R)^n -1]**

The various components of the formula are as follows –

P | Determines the principal amount |

R | The rate of interest payable every month |

N | The total tenure in months |

E | Total EMI payable each month |

Let us understand how this formula works with an example.

Suppose you have borrowed a car loan of Rs 4 lakhs for a period of 6 years from a financial institution. The agreed interest rate is 12 percent per annum. Now, the value that will be used in the formula are as follows:

**P** = 4,00,000

**n** = 6 x 12 = 72

**R **= 12/(12 x 100) = 0.01

Putting these values in the aforementioned formula, we get

**EMI = 400000 x 0.01 x (1+0.01)^72/{(1+0.01)^72-1}**

**EMI = Rs 5,254**

**Total Interest** = Rs 3,56,529

**Total Payable Amount** = Rs 5,56,529

As you can see, the formula requires usages of a number of variables and involves complex calculations. A car loan interest calculator does all the calculations and shows you all the EMI details instantly. This saves your time and effort and gives you an accurate picture of how your repayments will be.

## Factors Influencing Punjab National Bank Car Loan EMI Calculation

### Principal Amount

The principal amount, or the total loan amount, plays a significant role in determining your EMI. Naturally, the higher the loan amount, the higher the EMI you’ll be liable to pay. But remember, don’t let the allure of a shiny, high-end model lure you into borrowing more than you can comfortably repay.

### Interest Rate

The interest rate is the cost you pay for borrowing the loan amount, expressed as a percentage of the principal. Punjab National Bank’s interest rate varies based on several factors, such as the type of vehicle, your credit score, and the prevailing market rates. A higher interest rate will increase your EMI amount and the total interest you pay over the loan tenure.

### Loan Tenure

Loan tenure is the time period over which you repay the loan. It is inversely proportional to the EMI; a longer tenure means lower EMIs, and a shorter tenure means higher EMIs. But be wary of stretching the loan tenure too long just to lower your EMI, as it might increase the total interest you pay to the bank.

### Credit Score and Other Factors

In the realm of finance, your credit score is akin to your school report card. It tells lenders how responsible you’ve been with past loans and credit. A higher score can bag you a lower interest rate, thereby reducing your EMI. Also, the type of vehicle, your income, and other debts can impact your car loan terms and EMI.

## Advantages of Using CashZeni Punjab National Bank Car Loan EMI Calculator

While the Punjab National Bank Car Loan EMI Calculator seems like a nifty tool, why should you choose CashZeni’s calculator over others? Here’s why.

### Convenience and Accuracy

Manual calculations can be cumbersome and prone to errors, but CashZeni’s calculator provides accurate results instantly. It’s as easy as clicking a button.

### Comparative Analysis

CashZeni’s tool allows you to compare different loan scenarios by adjusting the principal, tenure, and interest rate. It helps you understand the potential impact on your finances and aids in making an informed decision.

### Financial Planning

By knowing your potential EMI beforehand, you can better plan your monthly budget and manage your finances effectively.

## Conclusion

In this era of technology, it’s empowering to use digital tools to better understand our financial commitments. The Punjab National Bank Car Loan EMI Calculator is one such tool that demystifies the often complex realm of EMIs, helping you make informed decisions about your dream car purchase.

Remember, the joy of driving your own car shouldn’t be overshadowed by financial stress. Our goal at CashZeni is to ensure that you make the right financial decisions, and we believe that knowledge and understanding are the first steps on this path.

So go ahead, take that test drive, imagine the open road, and when you’re ready, let our Punjab National Bank Car Loan EMI Calculator guide you towards your dream car!

## Punjab National Bank Car Loan FAQs

### Can I calculate the EMI for different interest rates using the Punjab National Bank Car Loan EMI Calculator?

Absolutely! Our calculator allows you to change the interest rate and observe how it affects your EMI. It’s a nifty way to understand how even a small change in interest rate can significantly impact your monthly outgo.

### How does a change in tenure affect my EMI?

The length of the loan tenure has an inverse relationship with the EMI. Longer tenures result in lower EMIs and vice versa. However, remember that a longer tenure also means you’ll end up paying more interest in the long run.

### How can I reduce my Punjab National Bank Car Loan EMI?

You can reduce your EMI by choosing a longer tenure or securing a lower interest rate. However, it’s important to strike a balance as longer tenures lead to higher interest payments. Remember, financial prudence is not just about reducing your EMI but also about reducing your overall debt.

### Is collateral required while applying for a car loan?

You don’t need any collateral for your car loan. however, you do need to have the car’s registration certificate (rc). the rc endorsed by the bank is later on canceled on the repayment of the loan.

### What is the maximum tenure of a car loan?

The maximum tenure of the car loan is 7 years.

**Is it possible to avail a car loan for a used car?**

Yes, most lenders offer car loans for used cars.

### Can I choose the floating interest rate option on a car loan?

Yes, you can choose the floating interest rate option for your car loan. Your EMI will vary with the change in the car loan interest rate offered by the lender.

### What are the documents required to get a car loan?

Some mandatory documents are –

– Age proof, identity proof, and address proof for kyc

– Income proof (salary slips or form 16)

– Bank statements

– ITR with audit reports (of 2 last financial years)

– Ownership proof

– Business stability or employment proof

– Partnership deed