How to use the SBI car loan EMI Calculator

People opting for car loans have increased in huge numbers because of reducing rates and easing of the process. Most of the banks offer car loans at competitive rates and highly flexible loan tenure. The State Bank of India is one of those banks that provide car loans at highly affordable rates. The processing of the loan application is also very quick and all the process has been digitised. The bank has a reputation of disbursing the loan amount very quickly.

SBI offers its customers the SBI EMI Calculator that helps to calculate and plan the car loan. Using this calculator the applicant can check how much he needs to pay the equated monthly instalment (EMI) and the total interest amount that has to be paid over the tenure of the loan. Using the calculator is an extremely easy process. The user just needs to fill in the required details and the EMI and interest payable is displayed on the screen.

Here is the detailed process to use the SBI car loan EMI calculator:

• The user needs to fill the total loan amount that he wants to take to purchase his car. It is worth noting here that the total amount of the vehicle need not be entered.

• In the next box, the user needs to enter the loan tenure. This tenure should be entered in the number of months for which the loan has to be taken. 

• In the last box, the user has input the interest rate that the bank has proposed. The interest rate depends highly on the financial history of the applicant and his previous engagement with the bank. A person with a better financial history, wherein he has cleared his dues on time and has cleared all his credits, gets the loan at a lower interest rate than the person who has frequently defaulted in credit repayments.

• Once these details are fed in the calculator, the user has to click the calculate button.

• The calculator then calculates the EMI amount and the total interest amount for the input set of data.

• In case the user wants to re-enter the details, he has to press the reset button. Once this button is pressed, the data is flushed and the user can input fresh data again in the calculator.

In order to get the car loan from SBI at lower interest rate, the applicant should ensure that he has a sound credit history. It will help him to get the loan at low interest rates. Another deciding factor for lower interest rate is the past relationship of the applicant with the bank. If the applicant has been a loyal customer of the bank and has availed its services like savings account, credit card, etc., he is likely to get the loan at lower interest rate.

The car loan EMI calculator helps the applicant to find out the amount he would have to pay per month and the total interest that would be needed to be repaid during the loan tenure. It helps the applicant to plan his car loan accordingly so that he does not put extra strain on his daily finances.

Top Tips for Lowest Interest Rates on Car Loans

The automobile market is on the boom since the past decade in India. The number of people who buy cars these days have outgrown every past record. Not only the development of infrastructure has motivated people to buy cars but also the ease with which we get car loans today has enabled people to buy cars and pay back the loan amount subsequently. However, every company that provides car loans does not suit every buyer. The rate of interest, tenure, prepayment charges and other aspects are prime movers that help people decide the type of loan they want to take to ride back home in their favourite car.

The interest rate on car loans differs from person to person. If we follow some of the best practices, we can end up paying far less on car loans on maturity.

YOUR CREDIT SCORE- Your credit score matters a lot when it comes to calculating the interest rate for your car loan by the bank. The bank analyses your financial history thoroughly and it accordingly decides your creditworthiness, based on which they offer you the interest rate for your car loan. People with a higher credit score get loans at relatively lower interest rates. So it is advisable that if you are planning to take a car loan in near future, start to repair your credit score by following the best practices.

PRICE OF THE CAR- Lower the price of the car, lower would be the loan amount and in turn the bank would impose relatively lower rate of interest on your loan amount. Every dealer has a huge margin on cars. Try to get the best deal possible. You can try various showrooms in the vicinity and enquire about the price of the model you want to purchase. Also, you can try to negotiate the freebies that the dealer can provide you in case every dealer offers the same price.

KEEP THE LOAN TENURE AS LESS AS POSSIBLE- Even if you have a huge loan to repay, try to keep the loan tenure as less as possible. In that instance, you will end up saving a huge amount of interest money which would otherwise be needed to pay off your car loan. Also, lower tenure allows the bank to reduce your interest rate further. The average loan repayment period is around 67 months for a car loan. Try to fix your loan tenure to around 50 months if it does not eat-up your finances and affect your daily budget.

AVOID UNNECESSARY ACCESSORIES- Every dealership offers a set of accessories with every model. Sometimes they may be necessary whereas sometimes they may not be so useful for you. Dealers charge a standard amount for these accessories. If tired in the automobile market, the buyer can get his vehicle customised as per his needs at lower prices and according to his needs. Paying for a high-end music system when you are not such a music freak makes no sense.

CHOOSE YOUR CURRENT BANK FOR LOANS- Your current bank knows very well how efficiently you have managed your finances in the past and how well have you repaid your loans on time. Moreover, as you are a loyal customer, they will provide you the car loan at much lower interest rate. Generally, people opt for loans from banks with which the dealer has tie-ups. Most dealers discourage people from taking loans from other banks. The bank having tie-up with the dealer has relatively higher rate of interest. Refrain from taking loans from them and reach out to the bank that offers you the best deal.

Tips to get a Car loan from SBI

Many of us wish to buy our dream car. A car loan from SBI can help you make your dreams come true. Take an SBI car loan that brings with it many benefits in order to realize your dream. SBI bank offers you the best deal on car loan and it charges very low interest rates, thus ensuring lowest EMIs. Also, SBI bank assures quick disbursement of loan and minimal paper work.

Follow the tips mentioned below before seeking SBI car loan

1. Look out for special offers during the festive seasons. For instance, SBI offers special loan schemes during festive seasons. The bank introduced a scheme under which it recently introduced 8 percent interest rate in the first year and along with it 10 percent interest rate for the next two years. It is also better to wait for year end to buy a car as car dealers offer great discounts during Christmas and year end to clear off stocks. Banks like SBI tend to reduce the interest rates during this time, thus enabling buyers to enjoy lower SBI car loan EMIs.
   
2. Get the cheapest loan by opting for SBI car loan. For a fact the bank offers affordable EMIs, depending upon the loan amount and the tenure. For instance, if a person has taken SBI car loan of Rs. 4 lakhs for three years, with interest rate of 8.87 percent, then the monthly instalment would be of Rs.12,535, which is the cheapest. On the other hand, if you are opting for a loan tenure of more than three years, may be of five years, then prefer choosing Canara Bank. The average interest rate charged by Canara bank is 9.2 percent and the EMI of the first year comes out to be Rs.8207. Therefore, if you choose a short tenure for repayment of loan then SBI car loan is the best.
   
3. SBI car loan is not offered on floating rates. The company offers loan at attractive interest rates which is fixed for the entire tenure. Avoid floating rates because such rates are subject to changes and volatility of interest rate changes.
   
4. Make sure that the bank you choose is offering either 100 percent finance or close to it for the on road price of the car. In this regard, it is also important that the borrower has a clear credit history. It should be known that this type of offer is meant for only a few cars. Usually, these include cars that have fantastic resale value. It is advisable that when borrowers are taking car loans, they should avoid long tenure loans, instead take short term loans, like the ones SBI offers. Therefore, SBI car loan for a short tenure is advisable.
   
5. Finding the right match. Every bank has its own conditions when it comes to offering car loans. For instance, some banks prefer giving loans to people who are salaried-professionals, while other banks offer it to self-employed professionals as well. You should know which is the best for you and then chose from IDBI or Canara bank or SBI car loan or any other loan option.
   
6. Check if the bank has foreclosure or prepaid charges. For instance, SBI and even Union Bank of India do not have any foreclosure charges or prepayment charges. This means if you want to repay the loan before time, you will not have to pay any penalty. Therefore, seeking SBI car loan is advisable.

Therefore, SBI car loan involves many advantages that should be taken into account while paying the loan. SBI is one of the largest banking institutions of the country and so SBI car loan gives you the advantage of enjoying easy loan repayments along with trustworthy services.

What Are the Options to Get Car Loan With Lower Interest Rates?

Most cherish dreams to buy a car but not everyone has the required capital to do so. This is where car loans can help you. A person who has some funds to account for the down payment and other charges can buy a car with the help of a bank. The bank pays the balance amount and the applicant then becomes liable to pay back the bank for it. The applicant can pay off the loan through Equated Monthly Instalments (EMIs). This reduces the burden of payment and gives the applicant a lot of financial options. For instance, the applicant can decide on how much of a down payment they can afford and then choose a loan amount that they can pay back without any difficulty.

The applicant has to submit some essential and required documents in order to avail a car loan. These include their identity proof, age proof, residence proof, photographs, salary slips, and income tax returns. This is a standard procedure that assures the bank that the applicant in question has given the correct information and is capable of managing the repayments. Another factor that plays an important part is the applicant’s credit score. If the applicant has a good credit score then it assures the bank that the individual in question can be trusted with the loan repayment. If the credit score is poor, the applicant is deemed unfit and their application may be rejected outright even if they have the income to sustain the EMIs.

There are a lot of banks in the market that offer car loans at low interest rates. Banks such as HDFC, ICICI, State Bank of India, Punjab National Bank, Standard Chartered, and Axis Bank give car loans at competitive interest rates. Sometimes, with so many options, it becomes difficult for an applicant to choose the right bank. The information provided below will act as a guide for people looking for the right bank for their car loan.

State Bank of India

State Bank of India is one of the oldest government-owned banks in the country. The bank’s car loan interest rates start at 9.25%. The EMI for the loan starts at Rs.1,619 per lakh for the maximum period which can go up to 7 years. The applicant must have an income of at least Rs. 3 lakh per annum. A processing fee of Rs. 950 plus service tax will be charged.

ICICI

ICICI is the biggest private bank in the country. The bank gives out car loans at an interest rate of 9.10% to 13.25%. The minimum amount of loan that can be availed is Rs. 1 lakh which can be paid back in a maximum period of 7 years. It must be noted that a processing fee of Rs. 6,153 will be charged.

HDFC

HDFC is a prominent private bank in the country. It offers car loans at an interest rate of 9.15% to 11.6%. The minimum amount of the loan is Rs. 1 lakh and the maximum tenure is 7 years. A processing fee of Rs. 5,150 is charged.

Punjab National Bank

Punjab National Bank is a state-owned bank that offers car loans at an interest rate ranging from 9.6% to 11.2%. The EMI starts at Rs.1,640 and the loan period can go up to 7 years. A processing fee of 1% is charged on the loan amount but the amount charged cannot exceed Rs. 6,000.

Standard Chartered

Standard Chartered offers car loans at an interest rate of 11.25% to 14.49%. The maximum loan amount that can be availed is Rs.30 lakh which can be paid back over a period of 5 years. No processing fee is charged.

Axis Bank

Axis Bank is the third largest private sector bank in the country. Axis offers car loans at an interest rate of 9% to 11.50%. The minimum loan amount is Rs. 1 lakh which can be availed for a period of 7 years. A processing fee of up to Rs.5,500 may be charged.

The information has been summarised in the following table.

Bank	Interest Rate	Processing Fee	Loan Amount	Tenure
SBI	9.25%	Rs. 950 + Serv. Tax		7 Years (Max)
ICICI	9.10% - 13.25%	Rs. 6153 (Max)	Rs. 1 lakh (Min)	1-7 Years
HDFC	9.15% - 11.60%	Rs. 5150	Rs. 1 lakh (Min)	7 Years (Max)
PNB	9.60% - 11.20%	1%, Max Rs. 6000		7 Years (Max)
Standard Chartered	11.25% - 14.49%	Nil	Rs 30 lakh (Max)	5 Years (Max)
Axis	9.00% - 11.50%	Rs 5500	Rs. 1 lakh (Min)	7 Years (Max)

What is Car Loan EMI Calculator?

The ease and convenience of availability of finance has made life easier for the common man. Buying a car is no more restricted to those who can afford luxury. Car is no longer considered a luxury but a necessity. Almost anyone with a good credit history and decent regular income can now purchase a car as per his budget and liking by taking a car loan and repaying the loan through EMI. EMI or an Equated Monthly Instalment is the amount you as loan borrower will have to pay every month to the lender of the loan which can be any NBFC or Bank. The concept of EMI is very beneficial to the borrower as it allows you to make part payments and saves the burden of huge cash outflow at one go without disturbing your monthly expenses dramatically. As one can repay the loan in instalments a large section of the society can now own a car through the ease of repaying the loan through EMI. Before we go into the calculation of EMI, let us first understand the concept of EMI.

What is an EMI?

EMI is nothing but monthly payment that you need to make to repay the loan. The calculation of EMI is on the basis of principal amount borrowed and tenure of the loan. If you take a loan for a longer term then the EMI per month would be lower but if you take a loan for a lesser tenure than EMI per month will be higher as you have to repay the loan in lesser time. However, lower EMIs over longer terms also mean higher amount paid as the interest rate is paid for a longer duration. 

The EMI of a car loan, like any other loan is a sum of two elements the principal amount and the interest amount. The weight age of the interest component is higher at the beginning of the tenure and as the term goes on decreasing the interest component goes on decreasing and amount paid towards principal goes on increasing. 

How is car loan EMI calculated?

Simply put EMI is arrived at by calculating adding up the principal amount borrowed to the interest accumulated and dividing it by the number of months in which you are willing to repay the loan. You can calculate the EMI yourself by using the mathematical formula or by using the PMT function in excel or buy using an EMI calculator online. 

If you calculate the EMI using the mathematical formula then you have to do the following calculation: 

EMI= [(loan amount*rate of interest*(1+rate of interest)^tenure of loan in months]/[1+rate of interest)^(tenure of loan in month-1)]. 

To calculate the EMI on excel one has to use the PMT (rate, nper, pv) syntax, where rate is the rate of interest; nper is total number of instalments and pv is the loan amount. 

However, one can avoid all these calculations and simply use the EMI calculator for car loan. You can use the EMI calculator for purchase of old or new car. EMI is an extremely useful and handy tool as it gives you instant results and you can compare loans available at different interest rates for different tenures and accordingly you can decide on your car loan as per your monthly repayment capacity and financial income. 

To use the EMI calculator for your car loan, you will need to enter the following details in the EMI calculator 

Loan amount:

The amount of loan you intend to take for your car after making the down payment. The amount of loan that you will take depends upon the cost of the car you intend to buy and how much down payment you are willing to make. The EMI will be higher each month if the loan amount is high. 

Term of the loan:

Term of the loan or tenure is the total repayment time for the loan. The tenure of the loan is dependent on the time frame in which you feel you are comfortable paying the loan. For a car loan the maximum term is 5 years and if you are unable to repay your loan in a period of 5 years. If you are unable to repay the loan in 5 years then the ownership of the vehicle is transferred to the lender who can auction it to recover the balance amount of the loan. 

Interest Rate:

Interest rate is the rate charged by the lender on the amount when you borrow the loan. The interest rate also varies from one lender to another. This is where car loan EMI calculator is extremely useful as it helps you compare the EMI from different lenders instantly.

Once you enter all these details in the EMI calculator for car loan online it gives you the desired output along with the calculation for each month. 

Advantages of Using EMI calculator for Car Loan:

Easy Access

EMI calculator can be accessed by anyone online and you can use it to calculate EMI as per your convenience.

No Chance of errors in calculation

The chances of errors in calculation are higher if you do it by yourself. EMI calculator gives accurate results without any errors and hence it is a better option.

Saves time and the hassle of complex calculations

You can compare the loans being offered by different banks by using the EMI calculator online and save time as all the calculations are done in few seconds so you compare the various offers as you do not have to calculate them yourself. 

Helps in Financial Planning

Using an EMI calculator for car loan helps you keep a check on your finances before you take up a loan that would not disturb your monthly budget.

Thus, you can easily workout the EMI of your car loan using the EMI calculator online.

SBI Car Loan

Introduction:

State Bank of India (SBI) is India’s leading public sector bank which is headquartered in Mumbai, Maharashtra. It offers a range of financial services such as personal banking, corporate banking, agricultural banking, etc. It has more than 14,000 branches in India, including 191 foreign offices across 36 countries as recorded in year 2016-17. SBI is counted among the top banks in India as it provides innovating banking solutions to its clients. SBI offers car loan schemes with competitive interest rates, longest loan tenure and flexible repayment options. SBI car loan can be availed easily by different segments of the population such as self-employed professionals, salaried professionals, etc. It can be availed to finance new cars, used cars and multi-utility vehicles.

Features of SBI Car Loan:

Low interest rates: SBI car loan offers lowest possible interest rates starting from 9.25% onwards. The interest rate given to a borrower is calculated on daily reducing basis. 

No foreclosure charges: No foreclosure charges are levied on SBI Car loan. It means that borrowers need not to pay any additional charges for pre-paying the borrowed loan amount. 

Longest repayment tenure: Borrowers are given longest repayment tenure of up to 7 years for re-paying the borrowed loan amount. 

Financing on-road price of the car: SBI car loan finances up to 85% of the on-price of the car which includes annual maintenance, cost of accessories, insurance charges, registration cost, total service package and extended warranty. 

Multiple loan options available: Borrowers can choose a car loan scheme from multiple car loan options available. SBI car loan schemes are designed to finance both new as well as used cars. 

Optional SBI life cover: Borrowers can also avail SBI life insurance cover along with SBI car loan by just paying some extra amount. 

Overdraft facility: Along with the SBI car loan, borrowers can also avail an overdraft facility from State Bank of India.

SBI Car Loan Interest Rates:

1 year MCLR rate: 9.25% p.a.

Loan Schemes	Interest Rate for Men
SBI Combo Loan Scheme	9.25% p.a.
NRI Car Loan	9.25% p.a.
Certified Pre-owned car loan	12.65% p.a.

*The figures mentioned above are subject to change. 

The SBI car loan offers both fixed and floating interest rates. Women borrowers are given 0.05% concession on interest rates for all SBI car loan schemes 

The interest rate offered varies on the following factors: 

1. Car loan applicant 
2. Tenure of car loan 
3. Car loan scheme
4. New or pre-owned car

SBI Car Loan Eligibility:

1. An applicant applying for SBI Car loan should be in the age bracket of 21 to 65 years.
2. The minimum net annual income of a salaried professional should be Rs.2 lacs. 
3. A self-employed professional applying for SBI car loan must have a minimum net annual income of Rs.3 lacs.

Documentation:

In order to apply for SBI car loan, customers need to submit a dully filled and signed SBI car loan application form along with necessary documents such as: 

1. Bank account statement of last 6 months.
2. Two passport sized photographs 
3. Any ID proof like Aadhar card, passport, PAN card, voter’s ID card or driving license
4. Income proof (for salaried professionals): salary slips of last 6 months or Form 16 of last 2 years
5. Address proof
6. IT Return for last 2 years (for non-salaried or self-employed professionals) 
7. Profit-loss statement of last 2 years (for non-salaried or self-employed professionals)
8. CA certified Balance sheet (for non-salaried or self-employed professionals)
9. Necessary lad holding documents (for applicants involved in agricultural activities) 
10. Proof of business activity (for applicants involved in agricultural activities)

Frequently Asked questions:

Q.1 I want to transfer my existing car loan to SBI car loan. Which are necessary documents for this process?

For car loan balance transfer, you have to submit the following documents: 

• Foreclosure letter 
• RC
• List of documents submitted to the current lender 
• Insurance copy
• NOC letter from the current lender
• Account statement from the current lender
• Loan sanction letter from the current lender

Q.2 What is minimum annual income required for SBI car loan?

The minimum annual income required for SBI car loan is Rs.2 lacs.

Q.3 From where can I get the SBI car loan application form?

Eligible applicants can download the application form from SBI official website or visit the nearest branch. SBI Car loan can also be applied online through paisabzaar.com

What is the best bank for car loan?

Choosing the best bank for car loan can be a hefty job since there are several banks that offer varying interest rates for car loans. Besides, this rate of interest is changeable depending upon the tenure for which the loan is availed, the quantum of the loan and income source of the borrower (whether business or job). 

It is difficult to name any particular bank for car loan since no bank charges the same lowest rate of interest at all levels and tenure of loan amount. 

Banks and their Rates of Interests

From the above table, it can be said that the State Bank of India could be a fair choice given its reasonable rate of interest on loan for both men and women. Let’s highlight the other factors that make SBI bank an ideal choice when seeking car loans. 

Why the SBI?

Compared to other banks, SBI offers the best SBI car loan interest rate for financing your four-wheeler. The loan available from the bank comes with lowest rate of interest, minimal paperwork, prompt disbursement and lowest EMI. 

What are the salient features of SBI car loan interest rate scheme? 

1. Longest repayment period (7 years) 
2. Lowest EMI and interest rate 
3. The SBI car loan interest rate on the loan is based upon Daily Reducing Balance
4. The loan from SBI does not include any advance EMI 
5. The SBI loan scheme includes financing on-road price (which includes Annual Maintenance/Extended Warranty/Total Service Package/Cost of Accessories, Registration
6. No foreclosure charges or pre-payment penalty 
7. Also, the scheme incorporates optional SBI Life Insurance coverage 
8. The scheme includes reimbursement of finances for cars that are bought out of your own personal funds at a rate of interest that is applicable on New Car financing
9. Overdraft facility is offered 

Remember, you can use the SBI car loan interest rate scheme for buying passengers cars, SUVs, Multi Utility Vehicle (MUV), etc. 

What is the eligibility for availing SBI car loan?

Individuals should be aged between 21 years and 65 years of age. He/she should belong any of the three categories as below:

1. The person applying for SBI car loan interest rate should be a regular employee of state or central government. Or, he should be an employee of public sector undertaking or a reputed company or a private firm. Professionals or partnership firms or businessmen or professionals or persons engaged in agricultural and allied activities. 

2. Also, the income of individuals will determine whether the person can apply for car loan. The net annual income of the applicant should be minimum of Rs. 2,50,000. The income of the co-applicant should be gross taxable income of a total of Rs. 4,00,000 p.a.. The net annual income and the applicant clubbed with the co applicant should be Rs. 4,00,000. 

3. The maximum loan amount that you can apply for includes 48 times of the net monthly income. 

There are certain documents required for applying for SBI car loan interest rate petition. This includes: 

Salaried person- Bank statement for last 6 months, proof of identity, 2 passport sized photos, income proof with last salary slip. 

Non-salaried person or businessmen or professional- Proof of address and identity, state of bank account for past 6 months, 2 passport sized photos, income proof 

Person engaged in allied and agricultural activities- Bank statement of last 6 months, proof of identity, proof of your address, 2 passport size photos, Ownership proof of land that the person claims to be his own, documentary proof of running activities such as poultry, plantation, dairy, etc. 

Thus, if you want to buy a four wheeler, opt the SBI car loan interest rate that can give you maximum benefits.

How to Change Your Car Registration

Relocation comes with a lot of work and the most important one is your car re-registration. The procedure of changing your car registration is quite confusing and tedious. Many people have no clue of this procedure and to get things sorted they end up paying a lot of money to the middlemen.

This article will tell you everything about transferring the registration of your car when you relocate.

NOC from the bank

If your car is financed by a bank, i.e., if you have a car loan against the car you are planning to take with you, then you will have to get a state transfer NOC from your bank. Visit your bank with an application and important documents such as ID proof, address proof and a valid reason of relocation like Job transfer certificate or anything else.

After checking all your documents and other details, bank will validate your request and when they find everything okay, they would give you letter of consent or NOC  which approves the state transfer of your car.

Apply NOC from the RTO

You need to submit NOC form to the RTO office, where you got your car registered. Form 27 and Form 28 have to be submitted along with a photocopy of the NOC you obtained from your bank. 

Here is the list of other documents which are required.

• An application requesting for NOC of interstate transfer
• Registration certificate, pollution under control paper, insurance papers and tax documents

• Original chassis of the vehicle
• 3-4 photocopies of CMV Form 28
• NOC from the traffic police department which state that you do not have any due fines for traffic violation under your name

When you submit all the above documents, RTO will issue the NOC certificate that would allow you to move your car from one state to another.

Re-registration of your car

Once your vehicle has relocated to a new state, you need to revisit the RTO office for the re-registration of your car along with the following documents.

1. Form 29-30 for the re-registration of your car’s number
2. Original copy of RC
3. Copy of insurance papers
4. Copy of NOC you obtained from the bank and RTO office
5. Emission test certificate
6. Original chassis of the vehicle
7. Your ID proof along with a local address proof
8. Your passport sized photos
9. Applicable fees like octroi charges and road tax (Octroi charges are calculated on the basis of depreciated value of a car and the state in which you are moving)

After submitting the above documents, you will get a new registration number of your car within few days.

Refund of road tax

Let’s assume that you purchased your car from Delhi and already paid a life time road tax, but after few months, due to some circumstances you need to relocate to Mumbai. In that case, you may request for refund of road tax but only after getting a new registration number from Mumbai.

Here are the following documents which are needed in this process.

• An application which requests for refund of road tax
• Duly filled Form 16
• RC copy with new registration number of your car
• RC copy of with old registration number of your car
• Insurance certificate of your car
• Passport sized photos
• Address proof

Once these documents and an application seeking for refund is submitted, then the RTO office in Delhi would contact the RTO office in Mumbai to validate the mentioned registration number. They will ask for an intimation that is CRTI. The old RTO office would process the refund request after obtaining the CRTI receipt.

It is always advised that you should start the process of obtaining the letter of consent or NOCs from bank, traffic police and local police in advance because it usually takes 2-4 weeks for the validation of paperwork. And once you have all the documents in place then the process of transferring of registration of car will not be a concern at all.

Transfer of Ownership of Used Car

As cars have become more of a necessity than a luxury for the average Indian, the market for new as well as pre owned cars has witnessed rapid growth. Though the market of used cars in India is brimming with great choices, you may also come across unscrupulous sellers. So before buying a used car, check the paperwork thoroughly and also make sure that your seller sends the letter of information about the sale to the Regional transport office, RTO (where the car had been registered) within 14 days. Here are some important documents which you must get before finalising the deal.

Thoroughly inspected car parts and documents:

Firstly, get the car checked by a trusted mechanic; doing this will either help you in fixing the problems by the owner itself or you can negotiate the price. Check the number of documents here:

Insurance papers: Check if the car had undergone any accidents and claims related to it. To know this, you must check the no claim bonus (NCB) percentage. It’s always better to have a high NCB.

Always check if the chassis number and engine number matches the numbers on registration papers.

Examine the condition of the tyres, brakes and filters of the car. A poorly maintained car is not worth of your money.

Transfer of the ownership of car

A buyer should submit the following forms to the nearest jurisdiction. These forms must be signed by the previous owner and the current buyer.

• Form 28: No objection certificate (NOC)
• Form 29: Transfer of ownership of car
• Form 30: Application of intimation and transfer of ownership

In case, the car had been registered in a different jurisdiction then a buyer can demand a NOC from the RTO of that jurisdiction, it will speed up the whole process of transferring the ownership.

After submitting the above documents and forms, the local RTO would start the process of transferring of ownership. A buyer will receive a receipt in 15 to 20 days and a copy of RC (with buyer’s name) will come in around 40 to 45 days. This process shows your legal transaction and acts like an evidence of transaction.

Once you receive the RC, there are some other documents also which you need to take care of:

1. Get the car insurance transferred at your name, or get a new one as an alternative
2. Do not forget to get the service book which includes all the records of services done along with the road tax receipts
3. If the car has CNG fitted to it, then do get the bi-fuel certificate
4. Also ensure that the seller should give you pollution under control (PUC) certificate.
   

In case your seller had taken a car loan for buying the car, then make sure you get Form 32 and Form 35, It will make sure that car has no pending and previous loan on it.

If the car is bought on finance then make sure that you get the original invoice of the car along with the NOC issued by the car finance company.

Conclusion

Buying a used car from a dealer is less exhausting as he takes care of transferring of ownership in the name of the new buyer. But make sure that you are buying the car directly from its first owner and not the car dealer, in that case you will become the third owner and it would cut down the resale value of the car. However, buying a car from the auto company is one of the best and safest options as you get all the documents thoroughly checked by the company itself. It does the full car servicing before selling it and gives a warranty of up to 1 year along with 1- 3 free services. But usually this advantage has many terms and conditions applied to it, you can avail an exchange offer only if you have bought your first car from the same company. 

Car Loan EMI Calculator - check EMI with easy steps

These days buying a car has become more of a necessity than luxury. It is advised that you should not burn all your savings at once if you are planning to buy a car, there is an alternate option for this- car loan. It allows a potential buyer to pay for the vehicle in monthly instalments with interest (EMI) and the bank will pay off for the car in full. Wondering how many EMIs you will be paying over the loan time period and how you can manage your finances accordingly, EMI calculator will help you in doing so.

Car Loan EMI

Equated monthly instalment is the amount you pay every month to the bank until the borrower pays off the full loan amount. It includes the interest and a part of the principle amount. The tenure is divided by the sum of principle amount and interest and it gives the total amount which has to be paid every month. The interest would be larger in the initial months and will gradually shrink with each payment.

Three major facts about EMI: 

1. Longer tenure will reduce your monthly instalments
2. If the rate of interest is high, then your EMI would be higher
3. EMI depends on your loan amount, high loan amount will give you high EMIs

Car Loan EMI Calculator

Car loan EMI calculator plays a major role when you are planning to take a car loan, from deciding the perfect car model to assisting you in planning your monthly finances. It is very easy and hassle free tool that helps you in maintaining your present and prospective monthly instalments. Many third party loan comparison websites, leading banks and financial institutions offer this tool on their official websites and an applicant can use it for free. 

You can just enter the details which includes your rate of interest, loan amount and repayment tenure, EMI calculator will instantly calculate your monthly  instalments as well as amortization schedule. If you enter a processing fee (if any) then this fee will be added to your principal amount and will give you the sum of expense which you will be incurring. If you wish to prepay your loan, then you can also check the influence of your prepayment on EMI by entering the prepayment amount, prepayment frequency and prepayment penalty. To make your EMI affordable, it is advised that you use the EMI calculator and plan your monthly budget accordingly

How does EMI calculator works

EMI Calculator first calculates the compound interest of your principal amount at the current rate of interest. The calculation is based on the total payable amount, compound interest and the remaining part of the EMI is considered to be the principal amount.

EMIs can be computed mathematically using this formula.
[P x R X (1 + R) ^ N] / [(1 + R) ^N - 1] = Monthly instalments

Where P = principal loan amount, R = Rate of interest per month and N = number of monthly instalments. Suppose your rate of interest is 12% per annum then the interest rate per month will come out to be
12/ (12 x 100).

The EMI is a total of principal amount and the interest amount. For example, if the borrower takes up a loan of Rs. 10 lakh on which the monthly interest is 0.0075 (according to the annual interest rate of 9%) and the tenure is 15 years tenure that is 180 months
then by using the formula, the EMI will be calculated as Rs. 10, 142.67.

By using an online car loan EMI calculator, you will get results without any calculation errors or hassles that are prone to occur otherwise.