EMI stands for Equated Monthly Installment. EMI is the amount you have to spend every month for the loan you have taken. It is calculated by dividing the loan amount by the number of months that you will repay it. Typically, this calculation is done using various parameters.
The Auto Loan EMI is the cost of the auto or vehicle loan which is calculated on the basis of interest rate and tenure. The total amount required to repay a loan along with the interest can be calculated by multiplying the principal amount borrowed by the EMI.
An Auto Loan EMI calculator is a must-have tool for all borrowers. An EMI calculator is beneficial in calculating the amount that you need to pay towards your loan every month. Thus, it helps you to prepare a monthly budget taking into account the expenses towards the money borrowed.
EMIs are a great way to repay your loan! The Muthoot Fincorp’s Auto Loan EMI Calculator helps you to understand how a loan will be paid off based on the details that you provide. You can also figure out which monthly installments you can regularly pay and know how much will be left over at the end of each month.
What is a Vehicle Loan EMI Calculator?
A Vehicle Loan EMI calculator is a simple and easy way to calculate the monthly amount you might need to pay towards your loan. An amortization calculator is also referred to as an EMI calculator/rent calculator, car loan calculator, mortgage calculator, loan calculator and other things too.
Interest Rate Calculator is a unique software which can help you in calculating the EMI amount and loan rates. This calculator is easy to use and can be used even by a first time user. This application can also be used as a loan calculator. It helps you calculate total interest amount charged and due interest amount if loan is already ongoing.
How does a Used Car Loan Calculator Work?
When you’re applying for an auto loan, the EMI (equated monthly instalments) value offered by the bank becomes an important aspect. It is a way for you to figure out how much money you will be paying for every month for your new vehicle. Using an online auto loan EMI calculator is really easy – simply enter the three inputs (Principal amount of your loan, Rate of Interest and Tenure of your Loan in Months) in their respective slots and that’s it! The loan EMI calculator will give you the accurate EMI value automatically within seconds.
Factors that Affect your Auto Loan EMI :
- Principle Amount: When you apply for a auto or vehicle loan, the principal amount is the amount of loan money you will be able to avail from the lender. This amount directly affects your EMIs. This means when you apply for a lower principal amount, the EMI charged will be comparatively lower as compared to the one when you apply for a higher loan amount and vice versa.
- Rate of Interest: The interest rate you are charged for the loan is called the Marginal Cost of Funds. This helps to add on to the processing cost and profit margin of your lender, which a specific amount allowed by the RBI or banking regulations. A higher interest rate could mean a lower EMIs (monthly installment) but you also need to pay a higher principal amount every month.
- Tenure Period: The tenure period of a loan is the number of months or years within which you are repaying the loan. Your EMI amount too increases when your tenure decreases and vice versa. This simply means that if you want to reduce the EMI amount, then opt for a higher tenure period and if you want to lower the EMI amount with the same tenure period, then choose a lower EMI plan
How does Muthoot Fincorp’s Auto Loan EMI calculation help in your planning?
EMI is a very important aspect of the loan. Knowing your effective EMI helps you to plan for your loan amount and tenure well so that you can borrow without worrying about repayment period. Also, working out your EMI is the easiest way to calculate your eligibility for a loan and budget according to your requirement!