What is a car loan EMI calculator?

The purchase of a car can be an expensive venture for the working middle class. The purchase of a car can be a huge expenditure for a middle class individual in India. Thus, to help them out in buying the car of their dreams financial institutions have introduced the concept of car loans. Purchasing a car through a car loan can be advantageous for the individual in a lot of ways. When an individual opts for a car loan, the financial institution provides the loan amount to the individual for the purchase.

Financial institutions provide the customers with the loan amount for the purchase of the car. The customer is provided with the loan amount at a certain interest rate. Generally the interest rates on a car loan are fixed interest rates which mean the customer has to pay a specific fixed amount throughout the tenure of the loan. One of the advantages of availing a car loan is that, the car itself is considered as security which means that the customer does not have to provide any collateral to the financial institution. Through a car loan the customer can purchase a car that is well outside their budget. A car loan can be opted for a new car or a used car.

The repayments for a car loan are done through equated monthly instalments. The instalments can be calculated through EMI calculators. EMI calculators for car loans are generally available on the official website of the financial institutions.

What is a car loan EMI calculator?

A car loan EMI calculator has made it easy for people to calculate their EMIs on their car loans. An EMI calculator is basically a tool available on the website that will help the customer in finding out the EMI amount for the repayment. A car loan EMI calculator helps a customer decide and choose the right amount for loan amount for borrowing while making sure that their daily financial expenditures are managed.

An EMI calculator functions on a formula that is created to calculate the EMIs. The calculator takes inputs from the customer regarding the basic aspects of the loan, and calculates the EMI loan amount that will not affect the daily expenditures of the customers. The accuracy of the EMI calculator depends on the accuracy of the information that was provided by the customer. The usage of an EMI car calculator is simple to use for the customers. The tool is generally easy to operate. All the customers have to do is, input the correct information and an accurate amount will be provided to the customer that they will have to pay.

EMI car loan calculator formula:

E = P x R x (1+R)^n/{(1+R)^n – 1 }

E – Stands for EMI you owe on car loan amount

P – Principal amount

R – Interest rate on car loan

n – Tenure of the car loan

Keywords

Car loan , Car loans

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