Top Details of Car Loan, EMI Calculator, Eligibility and Benefits

Millions of Indians are heading upwards nowadays. Most people want their vehicles to achieve their destination in time and convenience. A car loan will make you aware of this fantasy of a ride.

Why not own now your dream car, which you didn’t think you could buy for at least a decade more? Custom Car Loans provide special incentives such as 100% finance to certain cars, adjustable repayment terms and an EMI that helps you to get a dream car in half time. Specific EMI Step-ups and other EMI plans make buying the dream car at competitive EMIs simpler. You can get a larger car from the smaller EMI.

Car-Loan-Interest-Rates

How is EMI Determined?

The EMI for any type of loan is determined using a formula:

E = P x R x (1+R)^n / {(1+R)^n – 1}

Where E is the EMI you owe,

‘P’ means the principal amount,

‘R’ refers to ROI charged to your applied car loan,

and ‘n’ means the car loan tenure.

Online Car Loan EMI Calculator

The EMI Calculator is available on the website or a trustworthy third-party website. The tool is user-friendly. You can use it free of charge many times. The results are immediate and exact, while manual EMI calculations are susceptible to human errors and take up time. You can also submit different combinations of the sum of the debt, loan and interest rates to achieve updated outcomes.

Also, Check – Top Tax Exemption on Car Loans to Know

Car Loan Eligibility:

  • Anyone in the following group can take advantage of a car loan:
  • Self-employed individuals
  • Monthly income holders
  • Corporate Relationship
  • HUFs and Trusts

Benefits

If you’re at the gate here are five benefits of a car loan.

  • Future savings: You may be tempted to buy a used vehicle just to avoid a loan.
  • It does not require collateral.
  • Great in the history of credit.
  • Quality enhanced.
  • Effective budgeting.

Car Loan Application Process:

car-loan-emi-calculator

The whole application process for a car loan was streamlined by the banks to encourage the borrowers. All can be done online without any personal visits to the banks these days, including application to loan approvals and disbursement. The entire application method works as follows:

Also, Check – Zero Depreciation v/s Comprehensive Car Insurance

Step #1: Fill out the form-Applicants have to fill on a request form of their preferred bank for all essential information such as their details and other required qualifications in the first stage.

Step #2: Document verification- The borrowers should upload all the documentation needed by the banks once the application has been sent. Since the car is the assurance in the event of a car loan, documentation is needed.

Step #3: Loan approval-The bank must accept the loan amount within a short period of two days if the bank has considered the paperwork legitimate and considers that the applicant will afford the EMIs.

Step #4: Loan disbursement-The loan amount shall be paid after a certain date to the borrower. In other terms, the banks pay a proportion of the money the customer has spent to acquire his car.