Why You Should Access an Online Car Loan EMI Calculator?
Owning a car is every person’s dream and a necessity as you plan to extend the family. But, due to the expensive lifestyle it becomes hard for a person to arrange for the whole amount to buy the car. This is a main reason why people prefer to take a car loan and they pay an equated monthly instalment that is to be paid to the bank to obtain the legal possession of the car.
Banks will offer loans based on the size of the market and though the terms look appealing, they are to be taken with caution. One way to do that is to use the online Car Loan EMI calculators to determine how much money you will be spending towards the loan each month.
How do car loan EMI calculators work?
Car loan EMI calculator is a pretty simple tool all you have to do is fill in the important details and the results including the EMI figure and loan break-up pops up.
You have to fill in details of the loan amount, the loan tenure, interest rate and processing fee. Some calculators also consider the factor of prepayment so you can make the most use of the calculator. Once you have filled in the required information, you will get the graphic and tabular break-up of the loan repayment. You will also get an amortization table that shows you how much of your monthly payment is applied to the interest and how much lowers your principal amount. In the initial days, the majority of the monthly payment is dedicated to paying the interest and as the loan is maturing, larger portions of the monthly payments go towards paying the principal loan amount. This is a very useful information if you wish to pre-close the loan.
For instance if you are taking a Rs.5 lakh car loan for a period of 5 years at a 14% interest rate and a 2% processing fee, then, your EMI will be Rs.11,634. Processing fee is Rs.10,000 and the total interest due will be Rs.1,98,048.
How can you make the most use of Car loan EMI calculators?
The EMI calculators will provide you the exact figures and it will help you make the right decision. The lenders will make it look like things are in rosy hues, but it is really up to you to make an informed decision. You can use the online loan calculators to ascertain which lender is offering you the best scheme. You can also adjust the tenure to find out which tenure is most suitable for you to comfortably make the payment of the car loan.
If your lender is allowing you to prepay the loan, then you can check to see how it will affect the final interest figure of the loan. Loan foreclosure is usually charges and you can check if prepaying the loan will lower the interest you are paying or not and then you can make the decision if you have to prepay the loan.
It is always advisable for one to check the EMIs that he will be paying before taking a car loan and make the best informed decision. It also gives you leverage as you can decide how long you want to repay the loan and you will not be startled with all the numbers the agent will be throwing at you as you would’ve done your homework before approaching them. Knowing the EMI amount that you will be paying each month will prepare you to bear and plan the finances efficiently so you won’t be overburdened. It will give you a fair and clear picture of how much money you will have left with you after you have made the EMI payments and you can plan your finances accordingly or make investments that will provide you additional income.
Banks will offer loans based on the size of the market and though the terms look appealing, they are to be taken with caution. One way to do that is to use the online Car Loan EMI calculators to determine how much money you will be spending towards the loan each month.
How do car loan EMI calculators work?
Car loan EMI calculator is a pretty simple tool all you have to do is fill in the important details and the results including the EMI figure and loan break-up pops up.
You have to fill in details of the loan amount, the loan tenure, interest rate and processing fee. Some calculators also consider the factor of prepayment so you can make the most use of the calculator. Once you have filled in the required information, you will get the graphic and tabular break-up of the loan repayment. You will also get an amortization table that shows you how much of your monthly payment is applied to the interest and how much lowers your principal amount. In the initial days, the majority of the monthly payment is dedicated to paying the interest and as the loan is maturing, larger portions of the monthly payments go towards paying the principal loan amount. This is a very useful information if you wish to pre-close the loan.
For instance if you are taking a Rs.5 lakh car loan for a period of 5 years at a 14% interest rate and a 2% processing fee, then, your EMI will be Rs.11,634. Processing fee is Rs.10,000 and the total interest due will be Rs.1,98,048.
How can you make the most use of Car loan EMI calculators?
The EMI calculators will provide you the exact figures and it will help you make the right decision. The lenders will make it look like things are in rosy hues, but it is really up to you to make an informed decision. You can use the online loan calculators to ascertain which lender is offering you the best scheme. You can also adjust the tenure to find out which tenure is most suitable for you to comfortably make the payment of the car loan.
If your lender is allowing you to prepay the loan, then you can check to see how it will affect the final interest figure of the loan. Loan foreclosure is usually charges and you can check if prepaying the loan will lower the interest you are paying or not and then you can make the decision if you have to prepay the loan.
It is always advisable for one to check the EMIs that he will be paying before taking a car loan and make the best informed decision. It also gives you leverage as you can decide how long you want to repay the loan and you will not be startled with all the numbers the agent will be throwing at you as you would’ve done your homework before approaching them. Knowing the EMI amount that you will be paying each month will prepare you to bear and plan the finances efficiently so you won’t be overburdened. It will give you a fair and clear picture of how much money you will have left with you after you have made the EMI payments and you can plan your finances accordingly or make investments that will provide you additional income.