Buying a car is one of the significant milestones in a person’s life. But sometimes, you may not have the required funds to buy a new car. However, today, there are several good used car options available. If you are looking to buy a second-hand car for your family’s needs, you also need to take the budget constraints in mind. In such a case, a used car loan can be a fantastic option for you to explore.
Used car loans have gained a lot of traction in the past few years. Many non-banking financial institutions offer second hand car finance to self-employed and salaried individuals at competitive interest rates. It is a viable option to purchase a second-hand car without depleting your emergency savings.
However, before you settle on a used car loan provided by a lender, you must know the various factors that can guide you in finding the right loan for your used vehicle.
Used Car Loan EMI Calculator
While availing a second-hand car, it is advisable to compare the different rates and charges offered by multiple lenders. The total loan amount consists of not only the principal and interest amount but also the EMI bounce charges, penalty interest, secure fee, maintenance charges, and more. Thus, to know the exact EMIs you need to repay during the loan tenure, a used car loan EMI calculator can be useful.
Used car loan EMI calculator is a calculator that enables you to determine the EMI that you have to pay towards the principal and interest amounts over the loan term.
The use of second-hand car loan EMI calculator has skyrocketed. Various lending institutions have launched their EMI calculating tools, which are not always accurate. Therefore, you must check your equated monthly instalments from a calculator provided by a reputable NBFC to make an informed decision on the funds you need, your EMIs, and other necessary details.
Why should you use a used car EMI calculator?
Here are some of the benefits of using a second-hand car loan EMI calculator:
- Saves time – It saves you valuable time. A standardized formula is used to estimate the EMIs. It shows results as soon as you enter the details and click submit.
- Helps you plan your repayment schedule – Through this calculator, you can easily get an idea of the instalments you need to pay at the end of every month. This can further help you plan your repayment options. For example, if you want to buy an expensive second-hand vehicle, you need a longer tenure to reimburse the loan amount. All these factors are determined by the EMI calculator only.
- Accurate results – It shows accurate results as compared to manual calculators.
- Detailed breakdown – EMI calculator breaks down the total amount payable under various headings, such as loan amount, interest amount to be paid, and other fees.
- Unlimited use – Last but not least, these calculators are free for unlimited use. However, this factor may differ from lender to lender.
How to calculate used car loan EMI using a calculator?
A used car loan EMI calculator is convenient to use. You don’t need any technical knowledge to calculate the monthly instalments using this calculator. Follow the steps below:
- Visit the official website of the concerned lender and open the EMI calculator.
- Enter the principal amount, interest rate, and loan tenure.
- Submit and know your EMI amount.
- You can check the EMI amount payable as many times as possible until you don’t get the desired figure. For example, if the used car loan EMI is higher or lower than what you want to pay, edit the principal amount, and follow the same steps from 2 to 3.
Once you get the required EMI amount, you can easily plan out your budget and other repayment options that suit your financial needs.
Wrapping up
To sum it up, a used car loan EMI calculator can prove to be highly lucrative for the individuals who want to avail second-hand car finance and muthoot loan. Also, compare the different lenders and choose the one suitable for your financial needs, so that you can get genuine benefits on your car loan.