1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed monthly payment amount a borrower makes to a lender to repay a loan over a specified period. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (₹)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment required to completely repay the loan (principal + interest) over the specified term.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan their finances effectively, and compare different loan offers to choose the most suitable option.

4. Using the Calculator

Tips: Enter the principal loan amount in ₹, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are SBI's current car loan interest rates?
A: As of 2024, SBI car loan interest rates typically range from 8.50% to 10.25% per annum, depending on credit profile and loan tenure.

Q2: How does loan tenure affect EMI?
A: Longer loan tenure reduces EMI amount but increases total interest paid. Shorter tenure increases EMI but reduces total interest cost.

Q3: What factors influence SBI car loan eligibility?
A: Income, credit score, employment stability, existing obligations, and vehicle value are key factors considered by SBI.

Q4: Are there any processing fees for SBI car loans?
A: Yes, SBI typically charges processing fees ranging from 0.35% to 1% of the loan amount plus applicable taxes.

Q5: Can I prepay my SBI car loan?
A: Yes, SBI allows prepayment usually after 6 EMI payments, though prepayment charges may apply in some cases.