Reasons why you should use car loan EMI calculator

Posted by harishchalke on January 13th, 2021

A car is one of the first things you hope to purchase when you start earning a regular income. But when you have just started your career, it is almost impossible to buy a brand-new car worth several lakhs. As such, you need to rely on car loans. Today, you can apply for a car loan online or by visiting your preferred bank or HFC. But before you sign the loan agreement document, make sure you use a car loan EMI calculator to understand the actual cost of the car. Here are all the reasons you must use the EMI calculator before taking on a car loan.

  • Finding a lender to finance your car loan is not difficult today. Between banks and HFCs, you can easily find lenders providing 90 per cent of finance of the on-road price of the car. Thus, your focus should not be on finding a lender per se but finding one offering the best interest rates and repayment tenures. The EMI calculator for car loan in India allows you to compare the different lenders and understand the EMI payable against different interest rates and terms.

  • Once the lender sanctions your loan, you must set aside a particular sum from your monthly income each month towards car loan EMI repayment. If you are unaware of the monthly EMI amount before the lender sanctions it, and if you discover that it does not fit into your budget, you could face a lot of financial troubles. The risk of defaulting on EMI repayment may also increase. However, the EMI calculator helps you understand the exact amount you must save towards EMI repayment.

  • The interest levied by the lender is one of the most crucial components of a car loan. The EMI payable against the loan depends on the interest rate charged by the lender. Even a little difference in the interest rate can affect the monthly instalment amount. The car loan EMI calculator helps you understand the EMI payable against different interest rates. This way, you are prepared for the loan, whether the lender levies a high or low-interest rate.

Every borrower aspires to get the lowest EMI car loan. While this may not be possible, you can still ensure that your loan is passed without difficulty by using the EMI calculator. This online tool allows you to evaluate whether or not you can afford the loan at all, preparing you in advance for the EMIs payable against the loan.

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harishchalke

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harishchalke
Joined: December 21st, 2020
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