A car loan is one of the best options available to a borrower to buy the car of his choice. Many banks and financial institutions offer car loans for different models of cars, both Indian and foreign made. An auto loan EMI calculator is a type of calculator that will let you know the equated monthly installment amount for the given principal, rate of interest, and the loan tenure.
How to use a car EMI calculator?
Using an EMI calculator for car loan is very simple. You need to input the following details:
• Principal amount
• Rate of Interest
• Loan tenure in years or months
Some car EMI calculators require you to input the company name and the model of the car and it calculates the principal amount by itself. Once you enter these details and click submit, the loan calculator calculates the EMI amount. Some calculators also give a detailed breakup of the EMI into principal repayment and interest payment.
Benefit of auto loan EMI calculator:
1. Easy to use:
A car EMI calculator is very easy to use. It needs a few inputs and it calculates the EMI instantly. There is no need to wait for a long time for the results. In case there are any mistakes in the figures, it can easily be rectified.
2. Free of charge:
Most lenders offering car loans have an EMI calculator for car loan on their website. This is offered free of charge to the customers so that they can calculate the EMI on their loans and take a decision about taking the loan.
3. Helps in loan comparison:
One of the best advantages of a car loan calculator is that it can be used to compare loans offered by different lenders. Knowing the change in EMI on changing the different inputs can help compare which lender is offering a better deal.
4. Helps plan prepayments:
Car loan calculators can help plan prepayments. Prepayments reduce the loan outstanding amount and can either reduce the monthly installment or the loan tenure. By using a calculator, it is easy to decide which option will be the best to reduce overall spends.
5. Interest payments and loan tenure:
One of the best uses of a loan calculator is to find out the total interest that will be paid out for the duration of the loan. By using this calculator properly, you can decide the right loan tenure that will reduce the interest payout and also fit in with your monthly budgets. Fixing the right installment can go a long way in ensuring you service your loan comfortably and also save on interest payments.
How to use a car EMI calculator?
Using an EMI calculator for car loan is very simple. You need to input the following details:
• Principal amount
• Rate of Interest
• Loan tenure in years or months
Some car EMI calculators require you to input the company name and the model of the car and it calculates the principal amount by itself. Once you enter these details and click submit, the loan calculator calculates the EMI amount. Some calculators also give a detailed breakup of the EMI into principal repayment and interest payment.
Benefit of auto loan EMI calculator:
1. Easy to use:
A car EMI calculator is very easy to use. It needs a few inputs and it calculates the EMI instantly. There is no need to wait for a long time for the results. In case there are any mistakes in the figures, it can easily be rectified.
2. Free of charge:
Most lenders offering car loans have an EMI calculator for car loan on their website. This is offered free of charge to the customers so that they can calculate the EMI on their loans and take a decision about taking the loan.
3. Helps in loan comparison:
One of the best advantages of a car loan calculator is that it can be used to compare loans offered by different lenders. Knowing the change in EMI on changing the different inputs can help compare which lender is offering a better deal.
4. Helps plan prepayments:
Car loan calculators can help plan prepayments. Prepayments reduce the loan outstanding amount and can either reduce the monthly installment or the loan tenure. By using a calculator, it is easy to decide which option will be the best to reduce overall spends.
5. Interest payments and loan tenure:
One of the best uses of a loan calculator is to find out the total interest that will be paid out for the duration of the loan. By using this calculator properly, you can decide the right loan tenure that will reduce the interest payout and also fit in with your monthly budgets. Fixing the right installment can go a long way in ensuring you service your loan comfortably and also save on interest payments.
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