Kia Carens— Kia Carens, a car manufacturer that has established itself in the MPV segment of the Indian automobile market, remains a popular family vehicle among the people. If you currently live in Delhi-NCR and are planning to buy the base petrol variant of Kia Carens, then the company is offering easy finance options to the customers. You can bring this 7-seater car to your home by making a down payment of just Rs 2 lakh. After this you will have to pay a fixed installment (EMI) every month for the next 7 years.

Kia Carens: Bring home Kia Carens base petrol variant by paying just Rs 2 lakh, understand the complete mathematics of 7 years EMI.

Kia Carens Base Variant: What is the on-road price in Delhi?

Before understanding the mathematics of vehicle finance and EMI, it is important to know its on-road tax and other expenses. According to Delhi showroom and RTO rules, the ex-showroom price of the base petrol variant of this MPV has been fixed at Rs 11.21 lakh. To put this vehicle on the road in Delhi, customers will have to pay a registration (RTO) fee of around Rs 1.12 lakh. Along with this, insurance premium of around Rs 54,000 and TCS charge of Rs 11,000 will be added for the safety of the vehicle. Including all these taxes and mandatory charges, its total on-road price in Delhi comes to Rs 12.98 lakh.

How much will be the EMI every month on a 7 year loan?

If you do not want to buy this car by paying full cash amount, then the best option is to take a loan from the bank. The loan installment will be decided as per the down payment and interest rate:

• On-road price: Rs 12,98,000
• Initial down payment: Rs 2,00,000
• Total loan amount: Rs 10,98,000
• Loan Tenure: 7 Years (84 Months)
• Expected interest rate: 9% (variable as per banks)

Based on this calculation, on a car loan of Rs 10.98 lakh with an assumed annual interest rate of 9 per cent, you will have to pay EMI of around Rs 17,700 every month for the next 84 months. During this entire period of 7 years, the customer will pay a total of around Rs 3.88 lakh only as interest on the loan amount.

Official statement/dealership advice

Impact on the common buyer and things to keep in mind

This base variant of the Carens is a great option for those who want a large and safe family car in a low budget. However, before visiting the showroom, customers should keep in mind that the final car loan interest rates completely depend on your profile, the bank offering the loan and your CIBIL score. If you have a good banking record, banks can also give loans at the rate of 8.5% to 8.75%, which can reduce your monthly EMI a little more. On the contrary, if the CIBIL score is bad, the interest rate can go up to 10% or even above.