Every person dreams of buying a car. Purchasing a car is a matter of great prestige for a lot of people. But a car doesn't come cheap. Depending on the make and model, a car can cost anywhere between Rs. 3 lakhs to Rs. 60-70 lakhs. Not everyone can buy a car out of their savings. With the increase in car sales, there has been a rapid increase in the number of car loans. Applying for a car loan is very easy with quick approvals. Most lenders take repayment in the form of EMIs or equated monthly installments set over a short tenure.
Before applying for a car loan, it is beneficial to check the EMI burden once the loan has been taken. But before you use a car loan eligibility calculator, it is important to know the following things:
1.Cost of the car:
Before checking the EMI on the loan, it is important to know the cost of the car. A car EMI calculator needs the loan amount as an input which is why it is important to know the cost of the car that you are looking to purchase. Since the loan amount usually depends on the value of the car, this is an essential point to be considered before checking the EMI calculation.
2. Rate of interest on the loan:
The EMI depends on the rate of if interest for the loan. Different lenders offer different rates for car loans. If you have a good repayment capability and a good credit score, you can negotiate to get a better rate of interest on the loan. Since the EMI consists of interest on the outstanding principal, a car loan eligibility calculator takes the rate of interest into account as well.
3. Tenure of the loan:
Before you use a car loan calculator, it is important to know the tenure for the loan. Most car loan eligibility calculators have a range to which the tenure can be adjusted. Knowing the tenure of the loan by different lenders will help to find out the EMI. One more thing to remember in terms of tenure is that the higher the tenure on the loan, the lesser the EMI. This is because in the initial stages, majority of the EMI services interest on the loan and small amounts go towards principal repayment. If you have the finances to quickly repay a loan, the EMI burden will be higher.
4. Repayment capability:
Before using a car EMI calculator, it is important to check the state of your finances. A car loan EMI is a committed monthly repayment, which may be a strain if you already have other loan repayments to take care of.
Before applying for a car loan, it is beneficial to check the EMI burden once the loan has been taken. But before you use a car loan eligibility calculator, it is important to know the following things:
1.Cost of the car:
Before checking the EMI on the loan, it is important to know the cost of the car. A car EMI calculator needs the loan amount as an input which is why it is important to know the cost of the car that you are looking to purchase. Since the loan amount usually depends on the value of the car, this is an essential point to be considered before checking the EMI calculation.
2. Rate of interest on the loan:
The EMI depends on the rate of if interest for the loan. Different lenders offer different rates for car loans. If you have a good repayment capability and a good credit score, you can negotiate to get a better rate of interest on the loan. Since the EMI consists of interest on the outstanding principal, a car loan eligibility calculator takes the rate of interest into account as well.
3. Tenure of the loan:
Before you use a car loan calculator, it is important to know the tenure for the loan. Most car loan eligibility calculators have a range to which the tenure can be adjusted. Knowing the tenure of the loan by different lenders will help to find out the EMI. One more thing to remember in terms of tenure is that the higher the tenure on the loan, the lesser the EMI. This is because in the initial stages, majority of the EMI services interest on the loan and small amounts go towards principal repayment. If you have the finances to quickly repay a loan, the EMI burden will be higher.
4. Repayment capability:
Before using a car EMI calculator, it is important to check the state of your finances. A car loan EMI is a committed monthly repayment, which may be a strain if you already have other loan repayments to take care of.
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