Car loan calculators to help you shop for a car

The increasing number of car loan service providers has come as welcome news for consumers.  With a large number of public sector banks, private banks as well as non-banking financial companies offering car loans for both new and pre used cars, consumers are spoilt for choice. Choosing a car loan is as important as choosing the right vehicle. A large number of consumers do not compare car loan offers from various service providers and often end up paying a large amount for their car loan. The use of online car loan calculator tools has been designed exclusively to help consumers take a right decision by selecting the right loan as per their personal finances. Let us look at various aspects of online car loan calculators and how they help the consumers make the right choice.

One of the intrinsic advantages of using a car loan calculator tool is the fact that they check the loan eligibility instantly. Most of the advanced loan calculators including the one developed at BankBazaar.com, India’s biggest financial marketplace on the web, car loan calculator uses advanced algorithms to check for users repayment history and credit history resulting in instant eligibility check. Only those users who are eligible for a car loan depending on their financial history are listed various car loan options.

Once the user has been approved as eligible for car loan, the online car loan EMI calculator offers a list of various car loan offers from different banks and NBFCs. The car loan calculator gives a detailed breakup of all loan elements including processing fee, loan charges and rate of interest along with any foreclosure charges and other penalties for each car loan. This list can help car loan applicant to compare car loan options of various service providers online. An applicant applying for a car loan in the traditional way one would have to spend a considerable amount of time and effort to collect car loan information from each bank and NBFC. There may be some banks the car loan applicant may possibly miss which may offer a better deal. Online car loan options offers instant comparison making it easier to compare a car loan and choose the one best suited for the individual.

Online car loan calculators offer a complete breakup of the car loan including the monthly EMI that would have to be paid by the applicant. Online calculators can help users to get the best suited tenure as they can check how higher or lower the EMI gets when they increase or decrease the car loan tenure. According to financial analysts and experts an individual must not pay more than 20% of his or her monthly income as car loan EMI. Any car loan tenure must be selected keeping in account the user’s monthly income and other expenses.