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Federal Bank Car Loan EMI Calculator
How many times have you set out to purchase something and thought to yourself, “How I wish there was some extra money. Then I would have bought this one” or “Let me buy this later when I get my mid-year bonus.” These statements are far too common for everyone as we all need that extra help to purchase something. One can compare the same situation to purchasing a car. Setting out to buy a car is a big deal. It is a huge decision to choose a car model and an enormous financial decision. Money does not grow on trees and therefore, it is a normal tendency to keep saving as much as you can. Well, with various car loans available in the market, it is not that difficult to buy a car today. One can make smart decisions financially and ensure that purchasing a car does not create a dent in your pocket. The Federal Bank car loan EMI calculator gives an estimated monthly pay-out towards your car loan. This helps in planning your finances before taking a car loan as well as during the loan tenure. More information on car loans and Federal Bank loan calculator have been mentioned below.What is a Car Loan EMI calculator?
A car loan EMI calculator can calculate the estimated monthly payments that you need make to the bank once you have taken a car loan. This is calculated on the basis of the principal loan amount, rate of interest provided by the bank and the loan tenure. The car loan EMI calculator is available with most banks on their websites and leading financial services provider like www.creditmantri.com. It is quite a simple tool to use and helps you in understanding your money outflow. You can use many combinations of the principal amount, interest rate and loan tenure to arrive at a comfortable EMI figure.
What is a car loan and how is an EMI calculated?
A car loan can be defined in simple words as money borrowed to buy a car. You will not have to pay the total price of the car upfront to the auto dealer other than the initial down payment. The bank pays the remaining price of the car and you need to repay the bank in Equated Monthly Instalments (EMIs) the loan amount plus the interest. The car that you purchase acts as the security for the loan. If there is a situation wherein you continuously default the repayments or are unable to pay back the loan, the bank will seize the car, sell it and close the loan.
The EMIs are calculated on the basis of the principal loan amount, rate of interest and loan tenure. Your loan eligibility and financial status influence the EMIs decided by the bank. The EMI does not change during the course of the loan period. However, it is important to note that the rate of interest is crucial in determining the EMI. The interest part of your loan repayment starts decreasing once the loan payment starts and eventually, the principal amount remains as the large chunk of this repayment. You can estimate the EMI by using the Federal bank loan calculator and plan your finances in advance for the loan period.
How does Federal Bank car loan calculator work?
The Federal Bank EMI calculator helps in calculating the monthly pay-outs towards your loan. A simple too to use, the Federal bank loan calculator has the option of calculating a monthly repayment and quarterly repayments. It also works out the EMIs for the entire loan period through the Loan Amortization chart. With an advance understanding of the monthly payments, it is easier to manage your other financial obligations. You can also request the bank to share the Federal Bank car loan statement to track the payments made and more importantly the balance loan amount.
Features of Federal Bank car loan EMI calculator
- The Federal Bank EMI calculator is a very simple and convenient tool to use. You only need to key in the principal loan amount, interest rate and duration of the loan to generate the EMI.
- The Federal Bank offers different types of calculators – Monthly payment and Quarterly payment. Accordingly, one can choose and decide the most convenient payment type to you.
- You can also utilize the loan amortization tool available on their website to which will list out the entire set of repayments with interest break-up.
- Federal Bank offers longer tenure for car loans and this can be treated to your advantage as the EMIs will be lesser on a monthly basis.
- The EMI calculator is available for use free of cost.
Factors affecting Car Loan EMI Calculator
Principal amount of Loan
One of the most important factors affecting your EMIs during the loan period is the amount of the loan itself. One needs to make a correct assessment of your regular income and expenses, other loan repayments or debts. Once you have a full picture of your financial situation, it will be easier to estimate the amount of loan to be taken. This will ensure that you are not unnecessarily burdened with high EMIs.Duration of the loan
The duration of the loan is the entire repayment period. This can be your choice, or the bank will help you decide on the basis of your financial situation. Longer the tenure of the loan, it will a lesser EMI that needs to be paid out. Federal bank car loan offers a maximum period of 84 months.
Rate of Interest
Any loan repayment is done with an interest. The rate of interest is set by the bank in accordance to RBI guidelines and MCLR method. Your loan eligibility and financial status is considered while finalising the rate of interest. Some banks provide fixed rate of interest throughout the loan period. The Federal Bank loan interest rate is competitive in the market and with a good credit score, one can negotiate a better deal with the bank.
Why does a credit score matter?
While you can easily apply for the Federal Bank car loan online, it is quite important to assess your loan eligibility. The most important factor used by all banks before sanctioning a car loan is to check your credit score. What is a credit score? It is determined by all factors in your financial life – Regular income, other incomes, liabilities, debts, loan repayments, credit card history and shows the overall health of your financial condition. It is recommended to have a score of 700+ to avoid a rejection on your car loan application.
Your credit score can be checked online for free through leading bank websites and/or financial service providers like www.creditmantri.com. A good score helps in negotiating a good car loan deal with the bank. Additionally, the credit score assessment helps you understand your current financial situation better.
Also Read: What is a good CIBIL™ Score for Car Loan in India.Growing demand for cars in India
The automobile industry in India has grown leap folds in the last two decades or so. With a burgeoning population and steady growing economy, all global car brands want a piece of this market. The number of car models available in the country today is making customers spoilt for choice. The competitiveness due to sheer numbers is not limited just to the sale but has extended to after-sales, maintenance, accessories, insurance and customer care service. These factors are fast becoming an influence on the purchase decision.
With the auto industry on the fast track, the financial services sector has also received an impetus. The ownership of a car is not hindered by lack of finance. The car loan options available make it easier for a potential owner to quickly book for his car. For instance, one call to the Federal Bank car loan customer care will help you get all details required.
One can also say that the easy availability of car loans has pushed up the car sales to a great extent. People are finding it easy to sign up for car loans as most auto dealerships have tie-ups with banks. This facilitates the purchase decision for the buyer and quickly close the documentation process. Overall, the experience of booking a car along with the financial assistance has become better and better. With access to social media, online websites, mobile applications etc., and one can get take a quick decision to buy a car and finance it as well.
Car loan EMI calculator summary
Even though you have established your loan eligibility, it is crucial to do a financial assessment. This is important to ensure that the car loan does not become a burden during the loan period. An EMI calculator helps you ascertain the monthly payments in advance so that you can plan and meet other financial obligations during the loan tenure. The car loan EMI calculator is available on CreditMantri website and can be used free of cost. CreditMantri also offers Income Tax calculator as well. The EMI calculator shows a detailed break-up of the monthly pay-outs including the interest component. You can use this calculator many times over till a comfortable figure of EMI is generated.Write a review