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SBI - Car loan

Loan amount
Duration
Rate of interest
Rate of interest per month
EMI
Total amount paid
Interest to be paid
Interest to be paid per month
Amount to be paid extra

For 5 years
663000
60
10.45%
0.00871

For 7 years
650000
84
10.75%
0.00896

Difference
-13000
24
0
0

EMI = (L*I)* {(1+I)^N / [(1+I)^N]L = loan amount

I = interest Rate(rate per annum
^ = to the power of
N = Loan Period in months

14234
854042
191042
3184
29%

11044
927723
277723
3306
43%

-3190
73681
86681
122
14%

Font in red are input value

Font in black are calculated usi

Conclusion 1 : since there is not much difference in interest to be paid for 1

month, it is wise to go for 7 years duration but to be ensured that we will repay
the loan before 5 years itself. Else extra 84000 have to be paid from pocket if
we are extending upto 7 years
Conclusion 2 : if we are not in a position to repay any bulk amount in between,
it is better to go for 5 years, because putting extra 3000 for every month will not
cause much burden (so that we can save atleast 84000)

Raja
7/7/2013
EMI = (L*I)* {(1+I)^N / [(1+I)^N]-1}
L = loan amount
I = interest Rate(rate per annum devided by 12)
^ = to the power of
N = Loan Period in months
Font in red are input value
Font in black are calculated using formula