Gone are those days when having a car was a far-fetched dream. Nowadays, all it takes is a good EMI plan. With middle-class families coming into action, the car market has exponentially grown over the years.
After a slight dip in 2019, car sales are again on the rise. The RBI has been injecting a lot of money into the market through low repo rates and other mechanisms, promoting more loans and EMIs, hence, more car sales.
However, it's not that easy to deal with car loan instalments. A slight miscalculation and all your financial planning might fall apart - wonder how to get rid of all the confusion regarding the calculations related to EMIs. Well, a car loan EMI calculator can sort things out.
How can a Car Loan EMI Calculator Help you?
A good car loan EMI calculating interface will be helpful in the following ways:
It will give you financial clarity regarding the payment of your car loan.
It will save you a lot of time and energy.
It will help you in your budget assessment and planning.
The EMI Calculator Tool
Well, many online platforms provide good service on this. They all use the formula mentioned below. There could also be several other factors that manoeuvre the scenario.
The standard formula that's used:
EMI = P×R×(1+R)^n / [{(1+R)^n}-1]
The symbols represent as mentioned below:
P- principal amount
R- monthly rate of interest
n- loan tenure in number of months
The principal amount of the loan is a significant factor. The more it is, the more the total EMI.
Different schemes are flexible to more relaxing tenures. The longer the term, the lower the EMI. However, you will have to pay more interest.
The monthly interest rate is where the financial institutions play this EMI game. So it would help if you were careful about this.
Prepayment charges can also be significant in determining the structure of the EMI.
Your monthly salary plays a substantial role in determining the amount of loan you will get. For self-employed people, their net worth might be taken into consideration.
Use a Car Loan Calculator to Help you with your Car Purchase
Payment is, of course, the most critical aspect of a car purchase besides selecting the car's brand, model, colour, and other features.
When you open yourself to the idea of car purchasing, you will find a plethora of options trying to pitch you a loan.
However, so many factors come into play in deciding the fate of the EMI. So, you need to be very proactive in determining the type of EMI you want to opt for.
It's highly recommended that you use a trusted and reliable platform to clear your mind regarding all the calculations related to the loan and EMI. This is where a car loan EMI calculator helps you a lot.
Take the help of technology and get yourself ready for the effective financial planning of your family.
Advantages of a Car Loan EMI Calculator
Some prominent advantages of a car loan EMI calculator are mentioned below:
Having solved the fuss around car loan EMI calculation, it takes plenty of loads off you.
The platforms providing such benefits take utmost care of data privacy.
It allows you to plan your financial policy accordingly.
Your time is of paramount importance. With lightning-quick services, just a few seconds are required to complete the task.
Key Features:
Several online players are out there who are trying to provide a good quality calculation interface. They try to optimise regularly following the changes.
Some features of a car loan EMI calculator are highlighted below:
Accuracy: It has been programmed so that the accuracy is not compromised. Because that's why you all are here; to know the correct information!
Unlimited Uses: Use it any number of times you want. There are no restrictions. Hastiness must be avoided in taking such important decisions.
Easy to Use: All efforts have been taken to enable a seamless experience. Regular optimizations are taken place to provide a pleasant user experience.
Quick action: All it takes is a few seconds to get your confusion cleared. So, help yourself!
Frequently Asked Question
Q1. How is a car loan EMI calculated monthly?
The standard formula for EMI calculation is:
EMI = P×R×(1+R)^n / [{(1+R)^n}-1]
Where the symbols represent as follows:
P- principal amount
R- monthly rate of interest
n- loan tenure in number of months
Based on the permutations and combinations of this formula, various banks provide several schemes. Select wisely as per your convenience.
Q2. Who can avail of a Car Loan?
Salaried employees are strongly recommended to use the EMI mechanism, even if they can pay the total amount. The monthly payment system is very convenient for them.
Moreover, anyone can pick a good plan and avail of a car loan. Middle-class fellas are mainly dependent on car loans, and rightly so.
Q3. Can the car loan EMI be changed in the future?
Yes, you might be able to change it. But, you would probably need a 'no objection certificate' from your previous service provider. You should be clear about any penalties and changes in the loan payment structure.
Q4. Can I get a car loan for a used car?
Well, it was not the case earlier. But, nowadays, a lot of banking and financial organisations are providing various schemes to help you out in buying a used car. It has been facilitated by looking at increased second market car sales.
Q5. How much car loan can I get on salary?
It depends on the amount of salary you are drawing. It's usually recommended for your EMI not to exceed 20% of your monthly remuneration. However, you can go for more than that as per the terms and conditions of the particular schemes.
Other factors like a credit score can also determine your fate in this.