Car loans offer the ease of breaking down the cost of your car into affordable monthly instalments. However, paying high interest rates on your car loan can end up becoming a financial burden. In such cases, transferring your existing car loan to a new lender with better conditions and lower interest rates emerges as a sensible move.
Bajaj Finance offers car loan balance transfer and top-up of up to Rs. 52 lakh at competitive interest rates. You can use the top-up loan amount to fund a variety of your expenses.
Before opting for a car loan balance transfer, you must compare your existing EMI with the prospective one offered by the new lender. The goal is to determine whether the car loan transfer offers tangible benefits, such as a lower overall cost of borrowing.
Formula for EMI; calculation
The mathematical formula used to calculate EMIs is the key to understanding them. The EMI formula, which combines the principal amount, interest rate, and loan tenure, is as follows:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
- P = principal amount
- R = rate of interest calculated monthly
- N = repayment tenure/ loan duration in months
Using this formula to calculate your EMIs manually is a complex and time-consuming task. It involves numerous calculations and involves the possibility of manual error. Furthermore, changes in interest rates and repayment periods can increase the complexity of these calculations.
Fortunately, you can use a car loan balance transfer EMI calculator to determine your repayment instalments with ease. This online tool simplifies the calculation process by delivering quick and accurate results, allowing borrowers to evaluate different EMI combinations and make informed decisions without the complexities of manual calculations.
The Bajaj Finserv Car Loan Balance Transfer and Top-up EMI Calculator can help you compare and choose from multiple offers to identify one that best fits your repayment capacity. It helps you avoid lengthy calculations and evaluate your EMIs in just a few minutes. Simply enter details such as the preferred loan amount, loan tenure, and the car loan transfer interest rate. The calculator will then generate the total interest payable and monthly instalments for the loan tenure. You can use this tool to plan your repayment and find the most affordable car loan balance transfer and top-up EMIs.
You also have the option of choosing our Flexi variant. With a Flexi Hybrid Loan, you have the benefit of paying interest-only EMIs for the initial part of the tenure. For the remaining period, the EMIs will cover both the principal and interest components.
Click on the link below to know more about our car loan balance transfer and top-up services.
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