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Wednesday 6 January 2021

Online Calculator for CAR Loan Know your monthly EMI and Interest Amount

Online Calculator for CAR Loan Know your monthly EMI and Interest Amount

What is a car loan?

Car loans are also known as auto loans. A car loan is a credit given by a lender such as a bank or NBFC (non-banking financial company) for the sole purpose of allowing a customer to purchase a car. It is a secured loan. Where the car you bought acts as collateral. Therefore, there is no additional collateral requirement for a car loan.

What is a car loan EMI?

Equal Monthly Installment (EMI) is a method of paying the principal amount and loan interest on a fixed monthly basis until the loan is fully repaid. Each EMI payment involves both the principal loan amount and the interest charged. The loan amount and selection period cannot be decided without factoring in EMI.

What is a car loan EMI calculator?

A car loan is a great financial option for those who want their own car but do not have the required amount or do not want to spend such a large amount at once. The car loan EMI calculator informs you to pay the loan installments quickly and easily at regular intervals. It enables you to evaluate the total outflow in terms of loan.

How can EMI calculations be helpful?

The EMI calculation gives a clear assessment of the amount that has to be set aside to pay the EMI. Which enables you to make an informed decision about loan outflow every month. So, knowing the amount of EMI helps you to properly plan the cost of buying a car while knowing how much you need to keep for it on a monthly basis.

Advantages of checking loan EMI

  1. Affordable assessment of loan
  2. Determining the amount and duration of the loan
  3. Planning a loan repayment
  4. Pre-payment planning
  5. Benefits of a car loan

Car loans can be beneficial in a variety of ways. like

  • When you don't want to pay the full amount at once when buying a new car
  • When buying a second hand car
  • Quick approval
  • Fixed or floating rate of interest, before which negotiations can be made
  • Duration up to 7 years
  • No collateral is required as the Vehicle Act is a security
  • Choose payment method as per convenience
Car Loans are in demand since with new brands entering the Indian auto market, the competition has got tougher and people find it easier to upgrade their existing cars to a newer model. Just like any other loan type, car loans too need careful planning as every bank has a different interest rate set up.

Car Loan EMI calculators help you find out what your monthly expenditure will be towards the loan you will be taking. Equated Monthly Installments, commonly known as EMIs. EMI is applicable for all loans that are paid over time in monthly installments. Using an EMI calculator can help you determine the EMI amount, the interest you will pay each month as well as an annual summary of payments towards interests and principal component. It is a quick and reliable method used by borrowers to budget their needs and expenses.

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