Traveling via bus, auto, metro train and others can be physical, emotionally and mentally draining. This is where you feel the void in your life even if you are earning big. A car or to say a dream car is what can fill the void and make your life complete in every sense of the word. So, what should a responsible and prospective car owner like you do? Accumulate the savings by saying 'No' to lavish dining at restaurants, frequent expedition drives, and few other expensive desires, so that you can buy your dream without pinching your wallet.
As car ownership can be in the range of lakhs to crores, you have to plan your Car loan journey in a meticulous way. Generate the savings with time to pay for the down payment, which is a small percentage of the car value. Loan and down payment are not the only costs that come with a car loan. But it also brings interest repayments into the picture. If not taken seriously, the interest outgo can take out a lot from your pocket over the course of 7 years, the maximum tenure of a car loan.
So, if you are short on homework, you could be in for a rude shock by the time you decide to avail a loan. To help you estimate the costs, a car loan calculator is what you need to keep using. In the world of a car loan, the calculators apply everywhere from checking the loan eligibility to ascertaining the EMIs payable. So, you can't take your eyes off from the calculators, which actually decide the loan amount and the EMIs that follow. So, gear up to understand the dynamics of car loan calculator for an enjoyable ride.
Car Loan Eligibility Calculator:
Dreaming of having a car but failing to know the amount of loan receivable will pull you down big time. So, what will come to your rescue? It is the Car loan eligibility calculator that will help resolve the fix here.
However, the loan amount calculation begins with the bank figuring out per lakh EMI. The computation of the same is done keeping in view of the longest loan tenure and the applicable interest rates. It will be better to take a cue from the below example for a better understanding.
Example- You want to avail a car loan from SBI. At the maximum repayment tenure of 7 years and applicable interest rates of 9.60%-9.65% per annum, the per lakh EMI will be ₹ 1,640-1,642.
Now, the bank focuses on analyzing your income and savings. Assume that you are drawing a net salary of ₹ 35,000 and generate a savings of ₹ 17,000. The bank will reckon that a portion of the saved amount each month can go towards the repayment of the loan EMIs. After a series of analysis, the bank finally puts all such financial figures into the eligibility calculator to find the expected loan amount.
Loan Amount Eligibility- ₹ 1,00,000 x savings/per lakh EMI
- ₹ 1,00,000 x 17,000/1640= ₹ 10.36 lakhs (Approx)
- ₹ 1,00,000 x 17,000/ 1642= ₹ 10.35 lakhs (Approx)
Get ready to bag away from a loan of up to ₹ 10.36 lakhs. With the said loan figure, you can walk straight to the showroom and grab one from the biggies like Volkswagen Vento, Honda Jazz, Honda Amaze, Maruti Swift & Maruti Swift Dzire. There can be other models as well within the loan amount.
Car Loan EMI Calculator:
A happy car loan journey lies with a clear understanding of the EMI amount you have to pay each. EMI, the short form of Equated Monthly Installments, constitutes both principal and interest amount of a loan to be repaid each month.
How can you ascertain that? It is what you would be asking me, right! For that, you need to use the EMI calculator, which figures out the monthly installments based on the loan amount, interest rate, and the loan tenure. For example- You are planning to avail a 7-year car loan of ₹ 6 lakhs from SBI. So, the EMIs that come out will be ₹ 9,837-9,853 at an interest rate of 9.60%-9.65% per annum.
Amortization Calculator:
A year-on-year loan repayment schedule can be a useful thing to take note of. How can you know the same? The answer lies in amortization calculator, which will demarcate the principal and interest repayments over the years. Also, you will get to know the outstanding balance remaining in each of the years as you trickle along in your car loan journey.
Keep using the calculators, keep riding the car free of any bumps.
No comments:
Post a Comment