A loan against car is becoming a popular option for individuals who are looking for quick funds at a lower interest rate. This loan option is useful when you need funds to manage your planned and unplanned expenses. However, if you are planning to apply for a loan against car it is important to find out your EMI amount beforehand. This will help you to plan your finances better. In such a situation, a loan against car EMI calculator comes in handy as it eliminates the lengthy calculation and gives you error-free results instantly.
How to calculate your loan EMIs?
Calculating your loan against car EMI requires three key factors – the loan amount, the interest rate, and the loan tenure. The formula for EMI calculation is
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
EMI = equated monthly instalment
P = principal Loan amount
R = monthly interest rate (annual interest rate divided by 12)
N = number of monthly installments (Loan tenure in months)
A loan against car EMI calculator also uses the same formula to calculate your monthly loan instalments.
How to use loan against car EMI calculator?
Loan against car EMI calculator is a user-friendly online tool that simplifies your EMI calculation. You can follow these easy steps to find out your monthly instalments.
- Visit the loan against car EMI calculator on our website.
- Enter the loan amount that you wish to borrow.
- Input the applicable interest rate.
- Select the loan tenure (in months) from the range of 12 months to 72 months.
Factors that influence your loan against car EMIs
There are several factors that affect your loan against car EMIs.
Loan amount: Your loan amount plays an important role in affecting the EMI of your loan against a car. The higher your loan amount is, the higher will be your monthly instalment.
Loan tenure: Another crucial factor that affects your loan EMIs is the loan tenure. The shorter the duration of the loan, the higher the monthly EMIs, and vice versa.
Interest rate: Your loan against car interest rates plays crucial role to determine your EMI amount. If your interest rate is higher, you have to pay higher loan EMIs while a lower interest rate reduces your monthly instalment amount.
Credit score: Your credit score affects your interest rate and lending terms. A higher credit score usually results in a lower interest rate and better lending terms.
Having a clear understanding of your EMI details beforehand will help you make an informed decision without affecting your finances.
Click on the below link to know about our loan against car.
