Check your loan affordability
Even if you haven't applied for a used car loan yet, using this calculator with the combination of different variables will inform you how much loan you can afford.
Used Car Loan EMI Calculator
Wouldn’t it be great to know the exact value of your second hand car loan’s EMIs beforehand? This will immensely help in planning your budget accordingly to avoid missing EMI payments. Let’s look at how our used car EMI calculator can help you with this.
Used Car Loan EMI Calculator
What is a Used Car Loan EMI Calculator?
A second hand car loan EMI calculator is an online tool that assists you in calculating your monthly obligation on your used car loan The tool is easy-to-use and only requires you to provide the following three variables: loan amount, applicable interest rate, and repayment period. If you are applying for a pre-owned car loan, use this handy tool to check how much loan you can afford.
You can determine your second hand car loan EMI manually or using a pre-owned car loan EMI calculator. Here is the mathematical formula for a manual calculation.
E = [P x R x (1+R)^N] / [((1+R)^N)-1)]
Where,
E stands for the equated monthly instalment
P refers to the principal loan amount
R is the rate of interest applicable on your loan
N is the repayment tenure in months
How to calculate EMI using a Used Car Loan EMI Calculator?
The functionality of the Hero FinCorp old car EMI calculator is based on the mathematical formula presented in the preceding section. Here are the steps to follow when calculating your EMI online through the Hero FinCorp website.
- On the second hand car EMI calculator, enter the principal loan amount of your used car loan.
- Next, use the slider to enter the pre-owned car loan interest rate mentioned on your loan agreement.
- Lastly, enter the repayment tenure you desire for your loan.
Finally, click on the "Calculate your EMI," and your screen will display the accurate EMI based on the variables you have entered.
What are the benefits of using a Used Car Loan EMI calculator?
There are numerous advantages to a used car EMI calculator. These are as follows:
Budget planning
Your loan EMI is fixed, with the outstanding balance and interest component changing within the EMI. Since the calculator determines your monthly debt obligations beforehand, you can cut unnecessary expenses to ensure your EMI is paid on time.
Customisation option
The used car EMI calculator allows you to modify the repayment period several times until you arrive at the EMI that is friendly to your pocket.
Easy to use
The second hand car EMI calculator only requires three inputs and displays the result in the blink of an eye. Furthermore, the result displayed by it is error-free.
Frequently Asked Questions (FAQs)
An amortisation schedule is essentially a table that breaks down your EMI amount for each month. It informs you how much money you have paid or will pay toward principal repayment and interest payments for any specific month. It also shows how much principal you have paid so far and how much remains to be paid. As your loan term lengthens, the EMI will include a larger portion of the principal outstanding and a smaller portion of the interest payment.
You can lower your EMI using either or both of the following ways:
Increase down payment: The down payment is the portion of the car price that you pay out of your own pocket. Increasing the down payment reduces the loan amount and credit risk, allowing the lender to approve funds at a lower rate. The scenario ultimately results in a pocket friendly EMI.
Opt for a longer repayment term:Your used car loan EMI is inversely proportional to the repayment period. Extending your repayment period results in lower EMIs. On the other hand, if you choose a shorter term, the EMIs will be significant.
You will know whether you can afford the loan if you are aware of the EMI before submitting your loan application. Similarly, it aids in budget planning by eliminating unnecessary expenses.
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