Car Loan EMI Calculators – More Than Just EMIs

Car Loan EMI Calculators are amazing tools for calculating repayment EMIs on car loans. By entering a few basic details like amount to be borrowed, tenure for repayment, interest rates, and additional charges (if any), you can view detailed information related to the repayment of your loan amount.

Apart from calculating EMIs, Car Loan EMI Calculators have a lot of other uses also.

A Car Loan EMI Calculator not only allows you to view future financial requirements by knowing how much you have to pay as EMIs every month, but also gives you the option to customize the loan details to get the best possible combination of loan tenure, amount and/or interest rate according to your personal requirements. Such a tool will act as your personal financial planner. You can do permutations in terms of amount, interest and tenure to find the best possible repayment scenario for yourself and plan the next 5 years (or whatever your tenure is) with ease even before you actually apply for the loan.

Balance transfer or switching is possible for car loans. Some companies provide the option of buying off your car loan from the present provider, while offering benefits such as lower interest rates, or additional loan cash as per the valuation of the car.

A Car Loan EMI Calculator will help in optimizing your interest payments on car loans, while helping you explore options of switching between providers. How this works is - lets say you are paying 16% interest rate on your car loan, while another provider is willing to provide you a lower interest rate of 15% on the same loan, if you opt for balance transfer. So, if you take foreclosure charges into account, and feed the loan amount, tenure, interest, fees, and foreclosure charges into the calculator, you can actually see the final penalties being levied on you. Compare this with the new EMIs and overall amount you will be paying to the new provider, and you can gauge if you will be losing/saving money by switching to a lower EMI option from the new company.

Several Car Loan EMI Calculators will show the results in terms of Loan Break-up and Amortization details. Amortization denotes the loan status in terms of principal and interests paid, at any point during the repayment tenure.

 

For instance, if you have taken a car loan of Rs. 5 lakhs for 60 months, with the amortization table you can see details for the 7th month of 2nd year of loan tenure – including amount to be paid in that particular month, the principal and interest paid, and the outstanding balance at the end of the month.

EMI Calculators are multi-purpose tools, which can be used for a lot of things apart from basic EMI calculation. You can ultimately extract more out of these tools by the avenues discussed above.

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