Summary

Calculating the EMI of a used car loan is important to figure out how much you would have to pay as EMI every month. This article provides some solid tips for the same.

In FY 19, 4 million units of used cars or pre-owned or second-hand cars were sold in India. By FY 22, it is expected that close to 7 million pre-owned cars will catch the interest of buyers. The pre-owned cars market is growing from 3 to 4 times the new car market. Even though there has been a slow down in the new car market, the used car market hasn’t experienced any resistance.

The Indian pre-owned cars industry may be poised to be worth Rs 50,000 crore by FY 22. Even while purchasing second-hand cars, buyers prefer to take a loan for the same. Calculating the EMI for a used car loan is critical. It will give the buyer an idea about how much would be the monthly outgo for the next few years.

What is an EMI?

EMI stands for equated monthly installment which you make to the lender to repay the loan you have taken to buy a second-hand car. WIth every EMI, you repay a part of the loan amount and the interest payable on the loan.

Here Are Some Solid Tips for Calculating the EMI of a Used Car:

An EMI tool is straightforward to use. As mentioned above, all you have to do is fill in the details, and you can check out the EMI.

1. Search for EMI calculators for used cars over the internet. The search engine will throw up search results which may also include EMI calculator for new cars.
2. Make sure you are choosing the link of a reputed and trustworthy NBFC
3. Always input the correct details to know the right amount.
4. Once you input the details in the used car loan EMI calculator, the EMI is calculated and visible instantly.
5. The calculator shows the amortization table, wherein, the breakup of the principal amount and interest payable is visible for the tenure.
6. Use the detailed breakup to calculate which loan amount which best suits your budgets
   The free tool can be used as any number of times you want with different principal amounts and interest rates to calculate the EMIs

So, it is easy for you to calculate the EMI of a pre-owned car with a used car loan calculator.

Understand What the Different Parameters Mean

When you check out the used car loan calculator, you will mostly have to enter the following details:

• Loan: This stands for the loan you are planning to take from the lender. It is also referred to as the principal amount.
• Rate of Interest: This would be the approximate rate of interest a lender charges on the used car loan. Several NBFCs offer affordable ROI – remember, even a small change can lead to high differences.
• Tenure: The tenure of the loan – it is the time (usually calculated in months) for which the loan is taken.
  Once you enter the correct details, the EMI calculator will show you the monthly installment you are required to make to the lender.