Reasons to use car loan EMI calculators

The four-wheeler is the first thing you wish to buy when you start earning regularly. But when you start your career, it is almost impossible to buy a new car worth lakh. In such scenarios, car loanscome to your rescue. Nowadays, you can apply for loans online or by visiting the preferred bank or financial institute. But before signing the agreement, make sure to use the car loan EMI calculator for understanding the actual loan cost.

Following are the reasons to consider using the car loan calculator before applying for the loan:

Compare different lenders

Finding a lender for financing your four-wheeler loan is not challenging today. You can find lenders offering 80% of finance for the market value of the vehicle between the banks and financial institutes. Thus, your goal should not be finding the lender but finding the one who offers the best car loan interest rates and tenure. The EMI calculator for car loan in Indiaenables you to compare different lenders and know the EMI payable against varied interest rates and term.

Accurate and instant results

Once the lender approves your loan, you need to set aside a sum from your monthly income every month towards your EMIs. If you are unaware of the monthly EMI amount before the lender sanctions the loan and discovers it does not fit your budget, you could face financial hassles. The risk of defaulting on EMI repayment could increase. However, the calculator helps you understand the exact amount you should save towards repayment.

The results are accurate, and you can plan your EMI monthly budget and make sure you never default on loan repayment.

Calculate the interest rate charges

The interest levied by the lenders is the essential components of the four-wheeler loan. The EMI payable against the loan depends on the interest rates charged by the lender. A minor difference in the interest rates affects the monthly instalment amount. The car EMI calculatorhelps you understand the EMI payable against different interest rates. This way, you are prepared for the loan better, whether the lender levies high or low rates.

Calculates additional loan costs

Lenders charge several fees while sanctioning the loan. You need to pay the processing fees, documents evaluation charges, administrative expenses, stamp duty costs, and other such fees when you apply for the loan. Lenders generally list these expenses on their portals, letting you prepare for the loan beforehand. When you use the EMI calculator, you can add these costs as part of the principal amount. This way, you understand the precise loan amount, above the principal amount you require,and the sum interest paid.

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