X

30th December 2020

Superadmin

How To Calculate Your Used Car Loan: A Simplified Process With EMI Loan Calculator

With the introduction of different services available for everything, it is easier to get work done. There are various food outlets and services to choose from. The wider reach of options makes everything readily available. 

In the same way, with so many EMI calculators present, you can easily calculate your loan. In earlier times, it was a hectic process as there were not many options present.

But now several banks and financial institutions provide solutions. Now, you can get a car loan calculator easily.

The car loan is one of the most expensive loans in the market. As the car is a depreciating asset, the rate of the loan is high, unlike home loans. If you are thinking of buying a used premium car, the rates are high. There is a loan calculator for the used car too. 

There are also various institutions which offer loans at different rates. You need to search the market carefully before selecting an option. But, before diving in loans further, you need to know what EMI is?

EMI (Equal Monthly Instalments) is the amount that you pay each month if you took a loan. The amount of the loan is usually divided into equal monthly instalments. For example, you have taken a 5,00,000 loan @ 5 % for 2 years. Then the amount will be duly divided into 24 equal instalments. As 2 years have 24 months, you will 1 EMI each month. 

How is EMI Calculated?

A formula is often used for calculating EMI-

E = P x R x (1+R) ^n / {(1+R) ^n – 1}

Wherein, E= EMI

P= Principal amount of the loan

R= Rate of interest of the loan.

N= Amount of time of the loan. 

There is also a difference in EMI because of the fixed and fluctuating rate of interest. 

 

What Are Fixed and Fluctuating Rates of Interest?

The fixed rate of interest includes a fixed EMI and rate of interest. It follows a constant graph of EMI and does not fluctuate.

Fluctuating rate of interest includes different EMI and rate of interest. It follows different rates of EMI as per customer’s requirements. It adjusts according to the customer’s needs. It creates a further scope of fluctuation and also provides ease. 

Now, we have understood the concept of EMI & loans; let us dive deeper. Before starting to pick the correct loan option, you need to see a useful used car loan calculator. 

While purchasing a used car, it is essential to see the EMI options you have. You need to keep in mind your budget and other factors. After all the considerations, you need to make an informed decision. 

A used car loan EMI calculator will be efficient in providing you with a budget. 

Here Are Some Tips that can Help You in Getting A Good Loan Calculator For A Used Car

  1. Keep a watch on your credit score.

A good credit score is instrumental in providing a reasonable loan rate. A good credit score means that you can be fully trusted with the money. And you will also pay the loan in time. A delay in payment leads to a reduction in the credit score. 

To ensure that you get loans easily, always ensure a good credit score. 

  1. Compare loan institutions

To make sure that you get a good loan deal, always check, and compare your options. Given the variety present in the market today, there are many options available. Some institutions offer loans at a lower rate of interest than others.

Always comparing options before investing is a safe and viable option. 

  1. Set a budget

Knowing your financial limits is an essential step. Before investing a large amount, you should be aware of your financial constraints. Setting a budget will also help in ruling out options that are out of budget.

Setting a limit on the amount of loan will help you choose the best option. It will also help you in used car financing options as it will provide you with an idea. 

  1. Consider getting loans from a trusted institution.

Some institutions indulge in fraud, money laundering, which can make you lose money. Therefore, you should always be careful while selecting the institution. A good, certified institution will provide you with a secure means to obtain the loan. It will also ensure that your money and trust is in good hands. 

Conclusion: A Second-hand Car Loan Emi Calculator

Keeping all the factors in mind like used car loan interest rate, principal, etc., you can select a used car loan calculator of your choice. These calculators will provide you with a clear idea of the budget and loans. It will help you with a great deal in saving every rupee you can. These will further provide you with the means to calculate the EMI on the used car loan. So, what are you waiting for? Start browsing and calculating today.

 

Read More:
  1. 5 Common Mistakes People Make At The Car Dealership

  2. Avoid These Seven Mistakes When Buying A Pre Owned Car

  3. How To Avoid Car Theft?

Leave Your Comment

Your email address will not be published. Required fields are marked *

Recent Post

Porsche Boxster…

25th January 2020

Manual Or Automatic…

14th September 2020

Diesel Or Petrol…

01st October 2020

Tips To Keep In…

20th August 2020

How to Get the…

24th August 2020

Avoid These Seven…

24th August 2020

Second Hand Car…

29th August 2020

Perks Of Investing…

29th August 2020

10 Ways to Save…

29th August 2020

Car Organizers…

05th September 2020

Useful Tips for…

05th September 2020

How to Get a Used…

05th September 2020

10 Tips When Selling…

11th September 2020

Items to Keep In…

11th September 2020

10 Tips for Financing…

25th September 2020

A Comprehensive…

25th September 2020

Car Servicing:…

01st October 2020

Second-Hand Luxury…

01st October 2020

Performance-Check…

01st October 2020

Clear Title for…

12th October 2020

Best Modifications…

15th October 2020

No Claim Bonus…

17th October 2020

Questions To Ask…

19th October 2020

Learn How To Clean…

26th October 2020

Step-by-Step Guide…

29th October 2020

Ten Reasons To…

31st October 2020

Best Fuel-Efficient…

22nd November 2020

Difference Between…

02nd November 2020

Top Five Luxury…

06th November 2020

Petrol V/S CNG…

05th December 2020

5 Common Mistakes…

04th November 2020

Easy To Maintain…

08th November 2020

Used Car Selling:…

10th November 2020

Tips To Make The…

12th November 2020

Tips To Drive A…

18th November 2020

How To Avoid Car…

20th November 2020

Tips To Protect…

24th November 2020

How GST affects…

26th November 2020

Tips That Can Keep…

01st December 2020

Car Maintenance:…

03rd December 2020

Perks Of Having…

07th December 2020

Tips To Drive A…

09th December 2020

Winter Car Care…

11th December 2020

5 Typical Scams…

13th December 2020

Easy Maintenance…

17th December 2020

Kilometers Driven…

23rd December 2020

Transfer of Car…

27th December 2020

How To Calculate…

30th December 2020

Car Warranty Vs…

03rd January 2021

Why Is It Important…

06th January 2021

How To Choose The…

08th January 2021

Benefits of Buying…

10th January 2021

Safety Measures…

12th January 2021

Used Car Polishing…

14th January 2021

Car Seat Care:…

16th January 2021

Reliability Check…

23rd February 2021

5 Best Hybrid Cars…

10th February 2021

Car Clutch: How…

20th January 2021

Tyre Maintenance:…

22nd January 2021

Have Long Distance…

24th January 2021

The Right Car Body…

27th January 2021

10 Bad Driving…

31st January 2021

Hybrid Cars: All…

02nd February 2021

AMT vs CVT vs DSG:…

06th February 2021

Increase your Fuel…

08th February 2021

How to Increase…

12th February 2021

History Report…

25th February 2021

Hidden Costs On…

27th February 2021

Important Things…

05th March 2021

Car Tyres: Myths…

07th March 2021

7 Tips On Buying…

21st March 2021

Transferring Car…

25th March 2021