While there has been an overall slump in the automobile sector over the last few years, car loan continued to rise in demand across the country. Car loans make a convenient option now that helps people buy a new car with a hassle-free experience.
Before opting for a car loan, it is essential for borrowers to understand the repayment liabilities. How much is the EMI paid against the car loan? Car loan EMI calculators have come to give the answer to this question.
It is a hassle-free online tool that helps you decide if the specific car loan is suitable for you or not.
Car loan EMI calculator
A car loan EMI calculator is an online tool that helps you to determine the monthly installment liabilities from the car loan, before opting for it.
To get accurate calculations from the car loan EMI calculator, you first have to understand the relevant details of this tool. The three types of information that you must enter in the calculator are:
- Loan principal (The amount that you want to borrow from the lender)
- Loan tenure (how long the repayment period will last)
- Rate of the interest that is charged by the bank/lender on the borrowed sum
On inputting the above details into the online tool, the car loan EMI calculator will show the amount you have to pay in EMI against the car loan every month.
Pros of the Car Loan EMI calculator
The car loan EMI calculator is a beneficial online tool because of many reasons. A few of the benefits of the Car loan EMI calculator are given below:
1. Convenience
Earlier, the manual calculations for EMI on car loans were quite complicated. In the end, the manual calculations result in many mistakes. On the other hand, the EMI calculator is simple to use with a streamlined interface.
2. Accurate results
Sometimes, minor errors occur in computing cost while dealing with significant amounts. The risk of mistakes occurring is higher when you calculate the EMI on a car loan manually, instead of using the car loan EMI calculator.
By using the EMI calculator, you make the calculating process simple and easy, without any hassles.
3. Fast calculations
The major drawback of using the manual method for calculating EMI is that it would take a lot of time to reach the result. But if you can use the car loan EMI calculator, then you can immediately get accurate results after entering the data on the calculator.
4. Amortization table
The amortization schedule refers to the breakdown of the car loan repayment into months, revealing the proportion of the interest and the principal components for every EMI that you have to pay.
The best thing about the EMI calculator is that this tool provides you the date with the amortization table.
Conclusion
The information related to the car loan EMI calculator, along with its benefits, is consisted in this article.