5 tips for car loan and car loan calculator to calculate EMI

  • Blog Title
    Blog posted on : 22-07-2020

    5 tips for car loan and car loan calculator to calculate EMI

    Car Loan Calculator: Buying car? Find out how much EMIs you will have to pay

    How to use car loan Calculator?

    Using the EMI Calculator may be a very simple process. All you would like to try to is follow these steps–

    • Go the car loan Calculator page

    • Choose the loan amount, rate of interest, and tenor (in months)

    That's all! you'll instantly get your car loan amount along side the interest amount payable on the loan.

    Factors that Affect Car loan

    Principal- The principal is the car loan amount that you avail from the lender. It is directly proportional to your EMIs - lower principal will lower your monthly instalments and vice versa.

    Rate of interest- The rate of interest is the rate at which the lender offers you the loan. It is also directly proportional to the worth of your loan EMIs.

    Tenure- The tenure is the time within which you repay your car loan. The tenure is inversely proportional to your loan EMIs - longer tenure makes the monthly instalments cheaper and vice versa.

    How is Car loan Calculated?

    Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly.

    E = P x r x (1+r)^n/((1+r)^n – 1)

    1. E is the amount that you will have to pay every month; basically, the EMI.
    2. P is the amount that you want to borrow.
    3. r is the rate of interest that is applicable but calculated on a monthly basis instead of the annual rate of interest. It is obtained by using the formula r = (annual interest/12) x 100.
    4. n is the duration of the loan in terms of months. So if you select a term of 5 years, n will be 60.

    EMI is simply the quantity you (borrower) repay to the bank, each month , to clear your outstanding loan. You have to repay the EMI monthly , on a specific fixed date, for the whole duration (tenure) of the loan, till you repay the whole outstanding amount. (amount borrowed + interest).

    What benefits do I get by calculating my EMI before taking an Car loan?

    Calculating your EMI before taking a loan can help you in the following ways:

    You can manage your monthly expenses better. Once you know how much you must pay towards your loan each month, you can then budget the other expenses accordingly. You will be able to determine what tenure to choose depending on how much you can afford to repay every month. Planning prepayments and pre-closures can be done easily, helping you pay off your loan faster

    Types of Calculators for various loans:

    loan calculator to calculate home loan

    When you are buying a house, it is very important to use Home loan Calculator and calculate home loan EMI, It helps you to calculate EMI for home loan, check eligibility criteria and documents required and also it give you information about the application process to apply for home loan.

    Interest calculator for personal loan

    Personal loan EMI calculator helps you to calculate the EMI when taking a personal loan. It helps in financial planning, to check eligibility criteria and also documents required. Using this calculator you can check EMI and plan the loan accordingly according to the schedule.

    Loan calculator for car loan

    Car loan EMI Calculator- Now a days all car loan interest rates have become low and access to buy a four-wheeler using car loan. With this calculator you check your EMI and EMI schedule and compare with various banks available on the website. This helps you check processing fee, eligibility calculation and documents.

    Repayment calculator for Student loan

    Pursuing higher studies in a dream university is anyone’s a dream being student. Most of the student look for student loan and here our student loan calculator helps you to check the EMI, that helps you to find the repayment capacity, interest rates. This calculator helps you to compare interest against each bank and lender and plan for higher education.

    EMI calculator for Business loan

    Scaling up business is very crucial when you set up business, there is no point in setting up a company without expansion. Business loans help you to expand your business. Business loan Calculator let you to calculate EMI and analyze revenue and repayment schedule. It also helps in comparing the interest rates against each lender and plan for your EMI.

    FAQ: Using Calculator for EMI

    You have enter loan amount and interest rate and no. of months or years you want to keep to pay the EMI and calculator will give you end result and EMI schedule.

    What are the benefits of online loan Calculator?

    EMI calculator helps you to calculate the EMI and monthly loan payment schedule and this helps in financial planning of our life.

    Will this loan Calculator give EMI schedule monthly and yearly?

    Yes, this will give monthly EMI to be paid and schedule monthly

    What is the interest rate applied during my EMI?

    It depends on the bank or lender whom you are taking.

    What are you waiting for! Use this calculator and do the financial plan of your life to achieve goals.