You have decided to buy a used car and are still determining what the EMI will look like. The free Used Car Loan EMI online calculator can solve the dilemma. It will enable you to find out your monthly instalments. Select the Loan amount, the applicable rate of interest, and tenure. Instantly, you will get the instalment details and the total amount payable. It is a free tool that is easy to use and designed to help you make informed decisions.
The Used Car Loan interest rates, the tenure, and the amount that you need form the basis of the EMI calculation. You can play with the variables on the calculator to arrive at the EMI figure you are most comfortable with.
How does it work?
The Used Car EMI calculator can be used to select the most suitable tenure and the amount you can avail of yourself as a Loan. You can use the slider to fill in different values for tenure in months, interest rate, and Loan amount and adjust them till you reach the figure that suits you perfectly. The arithmetic formula for determining the Used Car Loan EMI is [P x R x (1+R)^N]/[(1+R)^N-1].
In the formula above, P denotes the principal amount, R is the interest rate, and N is the Loan tenure in months. The total cost of the Loan is the principal amount + the used car interest rate. The result is divided by the number of months in the tenure. The interest is calculated on the outstanding amount each month.
Factors that affect the Used Car Loan EMIs
The Used Car Loan EMI calculator considers many factors, such as the principal loan amount, tenure, and interest rate. Change in the insertion of these values results in a different EMI amount each time. The factors depending on which the Loan amount may vary include:
- Whether you are a self-employed professional, a salaried employee, or a businessperson
- Your income slab
- The Loan tenure you select
- The Used Car Loan scheme you are eligible for
- The insured value of the car you have selected
How to apply for one?
Securing the best Used Car Loan interest rates involves a few steps and other parameters the bank considers. Compare the Loan schemes across various online platforms and assess which one best suit your requirements. Next, you must collect and upload your income, identity, address proof, and other required documents.
You can apply for Used Car Loans by visiting the bank branch or through online platforms by filling out the application form with accurate details to expedite the approval process. Submit your form and wait for the bank representative to review it. Once approved, you can review the Loan agreement carefully before accepting the terms. Upon acceptance, the Loan amount will be disbursed to your Bank Account. You can use it to purchase a used vehicle.
