Four Wheeler Loans and Their EMI Calculation
Posted by KushiBL on March 24th, 2020
The money you borrow for buying your four wheelers can be from various sources- banks, a private lender, a credit company, or a non banking financial company. The loan is to be repaid with interest in installments within a fixed period.
However, loan aggregators help you with the best repayment options for a good 5 years. Explore Buddy Loan in order to reap more benefit for a car loan.
Car Loans and Their Availability
Personal loans for four wheelers- You want to buy that expensive car but don't have the funds? Saving money to buy that much needed four wheelers isn't always an option. That classy car you have been eyeing for months may go out of style by the time you save the cash for it!
This is where four-wheeler loans come into the picture. Buy that car you have been longing for, today. Reasonable EMIs, affordable interest rates, and simple documentation are the main reasons many Indians are opting for car loans off late.
While the amount of loan depends from lender to lender. Loans are available in the following manner-
What is an EMI?
A fixed amount of installment is required to be paid every month over the tenure of the loan, called Equated Monthly Installments.
An EMI consists of two portions- the principal amount of the loan and the interest charged on the same.
How To Calculate EMIs on Four Wheeler Loans?
EMIs are mostly fixed for the entire tenure and can be calculated using the following formula-
EMI= P*R* (1+R)^n/[(1+R)^n] -1
E is the EMI payable on the loan amount
P is the Car loan Principal Amount
r is the interest rate value computed on a monthly basis
n is the loan tenure in months
Loan for four wheelers can be easily applied for online. The documents required are also minimum. One quick online search will tell you that the documents to apply for car loans are as follows-
The formalities post-application is prescribed by the lender.
Acquiring a CIBIL score for obtaining that car loan is a must. A score of 750 or higher is generally considered credit-worthy. Higher the score, the greater the chances of getting a loan.
How Do I Repay The Loan?
People often hesitate to take loans with the stress of repaying them. Please note that once you take a car loan, keep the loan repayment at utmost priority, and you will be done with it as soon as possible.
If you get a chance, repay huge amounts as and when you can, thus reducing the tenure and interest.
Use the benefit of taking four wheeler loans to fulfill your necessity and wishes.
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About the AuthorKushiBL
Joined: March 24th, 2020
Articles Posted: 17
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