Used Car Loan EMI Calculator
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EMI Amount = *
With Poonawalla Fincorp’s loan EMI calculator, you can easily calculate your EMI without worrying about finances. This is a crucial step towards borrowing smartly as it helps you optimize your loan to the maximum. With our free online EMI tool, you can adjust your loan terms to match your budget and financial goals. With unique features and it is easy to use, you can easily access our EMI calculator on any device.
How to Use a Used Car Loan EMI Calculator?
Step 1: Visit the calculator webpage
Step 2: Enter the loan amount you require
Step 3: Fill in the per annum interest rate offered to you by Poonawalla Fincorp
Step 4: Enter the loan duration under section ‘Tenure’ in years
Step 5: View the results under the section ‘EMI Amount’
Components Affecting on EMI of Used Car Loan
Having a good understanding of the factors that affect the loan EMI amount can help you become a smarter borrower. Once you know how they impact repayment with the help of our EMI calculator, you are in a better position to adjust the terms and plan the loan suitably.
1. Interest rate: This is the rate of interest charged per annum on the sanction or principal amount for the given tenure. Try to get the lowest rate possible as it helps keep EMIs affordable and cost-effective.
2. Sanction: This is the loan amount needed to finance the purchase of a second-hand car. Borrowing a large sanction will result in higher EMIs, but you can reduce the borrowed amount by making a higher down payment.
3. Tenure: Tenure is the repayment timeline extending up to 60 months. A shorter repayment window results in a higher monthly outgo as you have fewer months to repay. On the other hand, a long-tenure loan will reduce the EMI amount significantly but increase your interest outgo as you will be paying interest for a longer period.
Different Ways to Calculate EMI for Old Car Loan
Knowing your loan EMIs beforehand is important for borrowing wisely, and you can calculate the amount in three different ways. Here is a breakdown of your options.
- Microsoft Excel: Here, you will have to use the Microsoft Excel program. Open a spreadsheet, click on a cell, and choose the ‘PMT’ formula. A dialogue box will open, requesting you to input values for the following variables.
- ‘NPER’: This stands for loan tenure in months
- ‘Rate’: This is the rate of interest monthly
- ‘PV’: This denotes the loan amount or principal value
Enter the values for ‘FV’ and ‘Type’ as 0 and 1, respectively. - Manual calculation: With the following formula, you can calculate the Pre-Owned Car Loan EMI amount manually.
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ (N-1)]
Here,
‘P’ denotes the principal amount
‘N’ denotes the tenure in months
‘R’ denotes the interest rate applicable on a monthly basis
- Online calculator: Using the second-hand car loan EMI calculator is the simplest option. It guarantees instant and accurate results every time. To calculate the loan EMI amount, simply input your desired values for the loan amount, tenure, and interest rate. The result will be displayed automatically, and you can access the amortisation schedule from the same page as well.
How to Reduce EMIs on a Used or Second-hand Car Loan?
Having pocket-friendly EMIs is very important as it helps you stay consistent with timely payments, and ensures you never have to dip into your savings. To make this a reality, here are three effective ways to reduce your used car loan EMI amount:
1. Opt for a longer tenure on the loan
2. Make a higher down payment on the loan
3. Negotiate for a lower interest rate
Frequently Asked Questions about EMI Calculator for Used Car Loan
Ideally, the best time to use the used car loan EMI calculator is right after you finalize the desired vehicle. Based on the cost of the car, you can estimate the loan amount you require. Subsequently, with the EMI calculator, you can calculate the second-hand car loan EMI amount to find terms that best suit your budget.
This repayment schedule is also known as the amortization schedule and can be accessed with a few clicks. First, calculate your second-hand car loan EMI amount using the online calculator. Then, click on the ‘Check Repayment Schedule’ button under the results. This will open an interactive table that allows you to check the repayment schedule for the given tenure.
Once you’ve used the EMI calculator to compute the monthly instalments, click on the ‘Download Repayment Schedule’ option. This will download a ‘PDF’ file to your device, which will contain all the information and can be accessed offline.
Yes, the EMI calculator offered by Poonawalla Fincorp is completely free of charge, and you can use it whenever you want, at any time.
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