As the Indian middle-class family moves towards a more modern lifestyle, it has increased the demand for four-wheeler vehicles proportionally increasing the demand for car loans. The option of getting a car loan is convenient and advised for people with low monetary resources or those who do not want to invest such a large amount at once.
EMI or equated monthly installment, at the basic level, refers to the fixed amount that you would be entitled to repay monthly to the car loan provider until the car loan matures. EMI is a part of every loan, in this case, the car loan is computed by the principal amount and a rate of interest. In this scenario, a car loan EMI calculator is the most important element in car loan repayment.
Since it is EMI that a borrower would be liable to pay, for a short to medium term depending on the choice of tenure. A lower EMI gives lucrative schemes to a borrower. But at the same time, a higher EMI for a shorter tenure might be more sensible.
EMIs are impacted by the following perks:-
The amount of loan that you are seeking is the main parameter due to which the car loan EMI value fluctuates drastically. The more the principal, the higher the EMI.
The term chosen for the car loan is another major factor that can impact the monthly car loan value of the EMI. longer tenure will result in reduced EMIs but one should note with longer tenure the interest amount to be repaid increases. Thus it is suggested to choose a balanced scheme according to one’s requirements.
As the EMIs are calculated at the rate of interest, this factor must be understood thoroughly. Different banks offer distinct interest rates. As the rate of interest increases, the EMI payable also increases.
Foreclosure or prepayment charges also bring significant changes to the EMIs.
Following are the advantages of the car loan EMI calculator:-
It gives you an opportunity to calculate the EMI amount which will be payable after the disbursal of the money.
It also provides you with a comprehensive view of the loan repayment.
The monthly and annual amortization tables can be viewed.
Conclusion:-
The loan tenure thus impacts the EMIs from a large perspective and one should be always aware of the fact that there are many more factors affecting the EMI.
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