Banks and NBFCs offer various types of loans that you can use for multiple purposes. With a 2nd hand car loan, you can buy a good used car without affecting your savings. You can easily get this loan at an attractive interest rate and flexible repayment. Both self-employed and salaried people can obtain a loan amount of up to 100% value of the used car.
When getting this loan for a used car, you should calculate the monthly installment you require to pay. However, it should be very simple if you are wondering how to calculate EMI for the 2nd hand car loan. You can use an online EMI calculator to accurately calculate your EMI.
Why should you calculate your EMI using a second hand car EMI calculator?
Several reasons suggest that you should calculate the EMI for your 2nd hand car loan before you apply for it.
- Calculating EMI helps you plan your budget more efficiently once you know your monthly EMI.
- You can use the EMI calculated from the comfort of your home at any time and free of cost.
- The EMI calculator is accurate and fast. It saves you from doing lengthy calculations.
- You can use a calculator to calculate the total payable amount to ensure the loan you are obtaining is expensive or not.
Things that affect the EMI for 2nd hand car loan
Before you use the second-hand car EMI calculator, you should know that a few factors affect the used car loan EMI calculation. The EMI for your car loan depends on its tenure, principal amount, and interest rate. Changing these factors helps you change your EMI amount. Moreover, more factors can also affect the EMI, including income slabs, age, group, car loan scheme, car loan application, etc.
How to use a second hand car EMI calculator?
You can browse for the second-hand car EMI calculator on your browser and open the calculator. The calculator uses this mathematical formula including EMI amount = [P x R x (1+R)^N]/[(1+R)^N-1], where P is the principal amount, R is the rate of interest, and N is the number of years or repayment period.
Once you open the calculator, enter the following details.
- Enter the principal amount you wish to get for your used car.
- Enter the interest rate offered by your lender.
- Enter the tenure of the loan.
Once you have entered these details, the calculation calculates the EMI amount and produces an accurate result. You can use the calculator as many times as you wish.
Also Read: Best car for beginners India
Ways to lower your EMI for 2nd hand car loan
If you want to reduce your EMI amount, you should get a used car loan with the lowest interest rate. You can also reduce your EMI amount by increasing tenure for the loan, but it will increase the total payable amount. So, use different combinations to find the best suited for you.
Improve your credit score and other factors to lower your interest rate. Research the value of the used car you wish to purchase. It will help you to select the right principal amount for your 2nd hand car loan. You should apply for the loan precisely the sum you need to purchase and avoid paying an extra interest rate on your EM.
Conclusion
Calculating the EMI for your used car loan allows you to make better financial decisions. Moreover, you can easily use the second-hand car EMI calculator and get the result without error. When looking for a used car loan, choose an established lender that offers a quick loan application process.
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