Connect with us

Finance

How to calculate the EMI for Used Car Loan? Here are Solid Tips

Published

on

used car loan

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.

Pranab Bhandari is working in one of India's fast-growing news network(ETV Bharat) as a content marketing manager. He has expertise in writing about the arts & entertainment industries of India.

Advertisement
Click to comment

You must be logged in to post a comment Login

Finance

Asian Economy and Forex Market Ruined by Corona Virus Spread

Published

on

forex

As the week began many had thought and expected that the ongoing war waged in China against the Coronavirus started to settle down. Japanese Yens in vital struggle South Korean exports still fell USD safe haven the option of most. Markets continued to operate without major deterioration, as Peking seemed to control the situation well. There are no significant changes in the economic situation in China, but those of its peers in the Asia-Pacific region are upside down as we reach the weekend. Two deaths in Japan and an upsurge in neighboring Korea suddenly brought the country into a very difficult economic condition.

Japanese Yen and Economy Combating fights The Japanese Yen has usually suffered its worst four-day stretch in over two years and is a respectable safe haven in times of trouble. The notoriously stable currency has fallen more than 2% in this short period. Before a small recovery in market trading today, traders may experience fear. For example, this decline has to do with the present situation and with how the epidemic has impacted both commerce and tourism.

There are concerns of a slowdown, including David Bloom’s head of FX at HSBC who says, “New cases of coronavirus in Korea and Japan have given people cold feet about Japan and the Yen as a safe haven.” It definitely appears to be true at least for the moment.

South Korea Another survivor In recent days South Korea has been the most significant increase in virus cases. Cases have nearly doubled in just 24 hours. In response to remarks from the Director-General of the WHO on how events indicate a further sharp increase, Korean stocks declined by almost 1.5% overnight.

Traders and the general public certainly hope that the comments of the director-general will not ring true, even though China’s exports to China have already plummeted significantly for February due to the instability of supply chains. In the region, South Korea may play a major linking position, so it is no wonder that the market is responding to the surge in this way.

Despite low confidence in the JPY ability to act as a safe haven right now, the USD has acquired some support in that respect. During the duration of the recession, the dollar tended to trade favorably as traders put their trust in the greenback. These are the best times to trade in Forex markets through real ecn forex broker.

This pattern will persist at least until the concerns of the virus are high. But, as soon as that happens and what damage has been done to the world economy by then, few can guess.

Despite the positive steps of the day, the couple and the broader economy also face challenges. On a more or less domestic level, the discussions on the future relationship between the UK and the EU are continuing. Today’s new titles reveal that the UK is committing to an entrance scheme based on points, which will severely limit the prospects for unqualified foreign workers.

Eventually, the Coronavirus issue remains unresolved in China. There are few headlines but the epidemic still limits business operations in China and overseas. This widespread instability in the supply chain is seen as the backdrop to the Apple profits alarm and both the DOW and the NASDAQ, which are heavily dependent on the Chinese market.

Continue Reading

Finance

Global Trends That Will Affect the Property Investments In 2020

Published

on

Global Trends That Will Affect the Property Investments In 2020

We live in an era where markets of all the countries are interconnected. Strong global forces are capable of bringing change in the global economy. A global trend can have a positive, as well as a negative effect on the global markets. Some of the examples of the current global trends are the rise of emerging economies like India and China, rapidly increasing digital technologies, etc. Changing global trends open the gates of new opportunities for countries, businesses, and individuals. But, countries and businesses go fail to chance with the changing trends lay far behind their competitors.

What are the global trends?

Any change in the ongoing situation that affects countries all around the world is known as global trends. These trends play a very important role in deciding the fate of an industry. Real estate is no more an exception. Real estate is known to be the backbone of several countries. As we are stepping into the year 2020, it is time to analyze the ongoing and upcoming trends that might influence the property market.

The year 2019 has shown numerous global events that had directly affected the markets all over the world. Though the economy of China and the US continue growing, the trade war between these countries does leave its mark. Their trade war has resulted in imposing a high tariff on numerous imports, including steel, aluminum, etc. These tariffs have negative effects on the economy, which can further effects the real estate markets all over the world.

Every year some countries move towards prosperity, whereas some struggle to fight ongoing crises. Below we have shared some upcoming and ongoing global trends that would affect the real estate industry in the year 2020.

 Global Trends 2020 and their effects on real estate

Technology advancement

Markets in the 21st century are ruled by technology. Technology has been one of the major trends that have changed the phase of the real estate industry drastically. Technology advancement is an ongoing process. In the past few years, technology has been one of the major reasons for the growth of this sector that too, on the global level. It has changed the way property business used to be done. Be it construction, marketing, sales, or customer service, technology has made things quite easy for buyers as well as sellers.

It has helped in increasing the construction quality while decreasing the construction time simultaneously. Last week, China built a hospital within10 days to accommodate coronavirus patients.

In 2019, we saw an increasing demand for augmented and virtual reality concepts. This trend is going to be seen in the year 2020 also. This technology allows a person sitting in one country to see and feel the property while sitting in the comfort of their house in another country. Hence, the country which would be able to imbibe the existing or can be ahead of others in terms of technological advancements would be able to ripe more profits as compared to other countries. On the other hand, countries that fail to adapt to these upcoming technological changes would lag at the global level.

U.S. house prices increase

The year 2019 has proved to be quite good for the U.S. economy. An increase in employment and a decrease in interest rates have resulted in a good YoY in several parts of the nation. However, the year 2018 has laid the foundation for this growth. The real estate industry was booming at that time.

However, the year 2020 might not give the same results. As per the Congressional Budget Office this year, the GBP is expected to slow to approximately 2 percent. Also, the Federal Reserve has indicated that the rate of interest will be increased at least twice this year. By the end of 2019, there was not much increase in the personal income; any increase in interest rate can be troublesome news for the U.S. real estate industry. It’s been some time that the interest rates were towards the lower side, so any increase would be no less than a shock for the real estate market.

Many of the major tech cities like New York and San Francisco have already shown a decline in their house prices. Any decline in tech jobs in these cities or in case the real estate market in these areas becomes a housing bubble than be ready to get surprised in the year 2020.

The higher U.S. interest rate would affect the real estate market on a global level.

We all are well aware of what power the $ hold on the world economy. Every time the U.S. brings any change in its financial policies, it not only affects the U.S. citizens, but its effect can be seen in all other countries as well. Many people compare their currency with the dollar to know about the status of their currency in the global markets. Numerous “forex software tools” are available in the market to know the currency exchange rates.

The reason behind this is that many countries around the world have either use the U.S. dollar or they peg their currency to the dollar. For example, there is a country that uses the dollar as a base; hence, if the U.S. increases its interest rate, then the same change would be seen in that country also. As a result, the homeowners will end paying more money as their mortgage repayments. The home loan interest rate plays a vital role in the growth of the real estate industry. Higher the rate of interest, lesser people would be interested in purchasing the property.

The economy of all countries is interconnected. Hence, any change debt or rate of interest in a powerful country like the U.S. has a global effect.

Increasing demand for sustainable properties

Nowadays, because of awareness, people are more interested in buying sustainable and environment-friendly houses. Studies have shown that millennials are more eager to buy sustainable products. The rise in the demand for organic products is a proof for the same. You might not believe it, but the truth is they are even ready to pay extra for these environment-friendly organic products.

The same trend can be seen in the real estate industry. Hence, landlords, property investors, or construction companies have to find ways to meet the demand for sustainable houses.

For sustainable houses, real estate companies need to use eco-friendly construction material. In addition to this, they need to focus more on the use of renewable energy sources like solar heaters, etc. One very simple change that construction companies and landlords are making nowadays to increase their property demand is that they provide an electric car charging point in the garage of their property. This way, they attract a tenant who owns electric cars.

Huge Urban Expansion

More and more people prefer living in urban cities to enjoy the lifestyle and the facilities provided by them. As a result, the builders have to bring changes in their construction so that they can meet the demand of the increasing population in the urban cities. Hence, the availability of amenities like gym, parking space, club, swimming pool, park, security, etc. is becoming a major point of consideration among the buyers.

Besides this, more and more families are interested in buying or renting a property near to their workplace to save time in commuting. Hence, the construction companies also have to build residential areas near or around these urban cities to meet the buyers, or tenants, residential demand.

Continue Reading

Finance

Exploring funding options for your business

Published

on

Exploring funding options for your business

To begin with, starting a business is truly a painful process, but at the same time, quite rewarding. The difficulties arise when it comes to funding it and hence, it is important that you have different options open. A great business plan is indeed a foundation of any business, but financing is that element that actually allows us to kick-start it. So, if that is not sorted, nothing will ever fall into place.

When it comes to owning and financing a new business, it is never a wise idea to put all the eggs in one basket. It is in the best interests of the business to diversify their financing sources so that if one door closes, you have the other one. Additionally, it will also broaden up options for you by improving the chances of getting an appropriate stream of finance.

Speaking of this, if you are a small business owner, it becomes even more challenging to be able to secure a loan from the bank.

So, if you are a small business owner, you have come to the right spot. In this blog post, we are going to explore funding options for small businesses.

Venture capitalists:

They happen to be a total external group, who in return of capital takes part ownership of the business. However, the value of the company decides the percentages of ownership. Additionally, these percentages are negotiable.

This is an ideal option for businesses who are short of physical collateral to present as a lien against a loan from the bank. Having said that, it is only suitable when the business possesses a massive potential in terms of competitive edge. It could be anything from a patent to having a captive customer.

The benefits which forming a liaison with venture capitalists are not necessarily financial. This particular relationship can provide a lot more than just money. It can bring in an abundance of knowledge in addition to connections from the industry alongside a clear picture regarding where you should take your business. After all, there is nothing better than the guidance from a group of experienced investors.

Angel Investors:

Well, venture capitalists and angel investors are thought to be one and the same. However, it is one big misconception which needs to be sorted. So, are you wondering where does the difference exactly lie?

To begin with, venture capitalists are large and established business entities which offer investment in return for equity. On the other hand, angel investors happen to be individuals with a priority to invest in a start-up. The difference lies in the fact that angel investors do not make demonstrable growth as a prerequisite for investment as a venture capitalist would.

Having said that, being able to find an angel investor is as fruitful as it would be finding a venture capitalist. However, the former would be able to give you more personalized control than the latter.

In addition to this, they are going to help, assist and guide you with their expertise in the long run.

Crowdfunding:

Crowdfunding is that option that can give small business a major boost.

To put things in perspective, it is a way of gathering funds through online platforms. To put it exactly, they enable small businesses to pool in investments from several sources at once, unlike other options which you need to seek out a single investment.

Through crowdfunding, you can collect funds to have your business pass through the developmental phase and move on to the phase where you can pitch it to major investors.

It is important to note that every crowdfunding site comes with a fine print bearing crucial points regarding equity. They must be read through thoroughly before opting for a crowdfunding platform.

Furthermore, make sure to run detailed research about the pricing and fee structure of each and every platform to be able to make the most out of them. Well, in case you are wondering, the crowdfunding sites need monetary assistance in the form of fees and pay-out structures in order to generate maximum profits and maintain operations.

Other than this, ensure that you compose a compelling pitch to be able to appeal to the investors for funds.

Peer-to-peer or marketplace lending:

Peer-to-peer or let’s put it P2P lending refers to an option where capital is raised through websites which serve as an outlet for borrowers and lenders to connect.

To put it simply, an account is to be created by a borrower on the website which keeps records and transfers funds by making a connection with lenders.

In other words, it is absolutely safe to them peer-to-peer, or marketplace is lending a hybrid platform. It is called a hybrid as it has characteristics of both crowdfunding and marketplace lending.

Additionally, countries with better and advanced financial industries prefer using the term marketplace lending.

The best part of choosing this option is that a P2P lending site has a true sense of community to offer.  They are packed with active forums having users who are eager to impart and exchange information about lending and borrowing. Therefore, they are gaining popularity as a reliable fund option for all the right reasons!

Convertible debt:

Convertible debt is all about seeking investment from an investor or a group of investors on the grounds that the debt, in future, would be converted into equity. It is hybrid in nature as P2P lending, where this one has debt and equity-like features.

If you,  as a small business owner,  are considering convertible debt, then it is important to note that although it is a great funding option, you should be comfortable with the prospect of ceding control to a certain degree to the investors.

Opting for convertible debt is indeed a beneficial option considering the fact that it prevents a strain on cash flow. And, this is what any small business would want! The interest rate is somewhat lower in comparison to traditional bonds. In addition to this, businesses are able to collect funds on immediate basis without having their shares diluted.

Conclusion

This is it, and we hope this piece must have generated awareness and given you something to pick and ponder over. The possibilities are endless if you only have the correct eye to weigh down the pros and cons.

Whatever funding option is that you choose, always make sure that you have done ample research before making any decision. Moreover, be very clear about your needs and goals as this is what will be the driving force when you are making your choice.

Continue Reading

Finance

Building an Emergency Fund with Mutual Funds

Published

on

Building an Emergency Fund with Mutual Funds

Financial planning not only entails saving for long term goals like retirement, higher education of your children, etc but also preparing for short term goals like creating an emergency fund, to tackle unforeseen expenses. While most individuals use their current savings account as an emergency fund, owing to the ease of access to money, a disadvantage of doing so is the poor appreciation of money. However, mutual funds offer a better avenue to park savings for emergencies with high liquidity as well. Covered ahead is how to build an emergency fund with mutual funds in detail.

Why is it important to have an emergency fund?

There are many instances in life when we need emergency funds to tackle financial demands. It can be a job loss, medical emergency, car accident or breakdown, or urgent travel plan. This can be fulfilled either by borrowing money or by saving money.  A wiser move would be to plan in advance will plan to generate his emergency savings fund through savings done via investment. Investment helps to add an extra source of income for the investors.

Why select mutual funds for an emergency fund creation?

Investors can inculcate a good habit of making regular investments. Ideally, an emergency fund must have an amount six times. The conventional process of making an investment in savings banks and fixed deposit is a good idea, but the interest offered by the banks are meager. Besides, some traditional investment products will hoard the surplus amount with a fixed lock-in period on withdrawal. No investors will like to compromise on the liquidity aspect in case of an emergency fund.

Whenever an emergency scenario arises, one has to resort to availing loans or borrowing from friends and family. This is the situation that most people do not prefer to go to. If you are ready with your emergency kitty, it saves you from facing the dire consequences. Therefore, to park the surplus monetary resources, mutual funds can be regarded as the best emergency fund investment in India. It provides a lucrative option for contingency fund creation with overnight funds and liquid funds. The best emergency fund will act as a lifesaver and instill confidence in the investor by granting him the power to deal with the undesired event. Even if an individual is a frivolous spendthrift, it will ultimately develop an inclination towards savings.

Investors can consider schemes like liquid funds and overnight funds, which are debt funds and the money is invested in securities that have a maturity period of one day. Another best emergency fund investment in India is the liquid fund that is channelized towards debt and money market security and has a short-term maturity duration of just 91 days. The shorter investment period of these mutual fund schemes also keeps the investors insulated from both the interest risk and credit risk. The liquid funds earn better returns than most banks offer on a savings bank account. Alongside this, the investors have nothing to worry about the availability of funds and compromise on liquidity. The overnight funds have earned their name from the investment in overnight securities, and the liquid funds get their name from the liquidity offered in such funds. When compared to the debt funds and regular equity, it processes the redemption request more swiftly, and any request before 3:00 pm will help the investors to credit the redemption process in the registered bank account in the following working day.

What can be the ideal size of the emergency corpus with a mutual fund investment?

We have already mentioned that the ideal size of the emergency corpus needs to thrice-six times of the monthly expenditure of an individual. Some financial planners recommend that debt funds are the best emergency fund to build and manage this corpus. This allows the investor to create the corpus over a period of time. It can be gained through the routes of Systematic Investment Plan (SIP) or the lump sum investments. All you have to do is select the AMC of your choice, for instance, Kotak Mutual fund and then go through the overnight funds and liquid funds available under the selected AMC. The windfall gain will help to achieve the desired funds to create this corpus. The overnight liquid funds or ultra short-term mutual funds are indeed the ideal emergency fund India due to its liquidity aspect. Only 1-2 working days are required to process the money.

How to build an emergency fund with a mutual fund?

Investors can select from the range of mutual funds like debt funds, liquid funds and overnight funds. All these emergency funds India can be created through a regular contribution with SIP. The small quantities will create a steady savings plan over a time period and accumulate a sizeable emergency corpus. The reason behind opting for a mutual fund as an emergency fund India is the power of compounding within itself. The compounding phenomenon revolves around reinvesting the returns to generate higher return value.

A longer duration of investment means experiencing a better effect on compounding on returns.

Hence, investors need to stay focused on their financial goals for a longer time to get the rewards over the years. By this power of compounding, funds can grow exponentially and reap bigger benefits to the investment players. Generally, people make an investment in mutual funds through professional fund managers. For this purpose, they can invest in growth plans which automatically reinvest the returns. Moreover, investors can gain benefit from it if they start to invest at an early age to create a robust financial future that can even be used in contingency situations. For instance, Investors can purchase mutual funds schemes from AMCs such as UTI Mutual Fund and others that provide viable options for emergency fund creation.

It is better to select mutual funds plans like liquid funds and overnight funds. The combination of these with debts funds renders it a risk-free option. Investors can invest in these plans by making a consistent contribution with SIP over a long term to obtain benefit from compounding effect as well. The better potential returns along with liquidity the aspect, leave no doubt that these plans are undoubtedly the best avenues for the investors. In the wake of the emergency, the funds developed through mutual funds will provide the much needed monetary cushion.

Continue Reading

Business

Now Atal Pension Yojana is More Beneficial 36 Lakh New Accounts Added

Published

on

Atal Pension Yojana

The online Atal Pension Yojana (APY), a lead pension plan of the government to cover the workers in the unorganised sector, has crossed 1.9 crore subscriber mark, This has been brought forward by the pension regulator which is Pension Fund Regulatory and Development Authority (PFRDA).

Under the APY, there is a guaranteed minimum monthly pension for the subscribers going between Rs. 1000 and Rs. 5000 every month. The advantage of minimum pension would be guaranteed by the Government of India (GoI). GoI will likewise co-contribute half of the subscriber’s contribution or Rs. 1000 for each annum, whichever is less. Government co-commitment is accessible for individuals who are not covered by any Statutory Social Security Schemes and isn’t income taxpayer.

The essential purpose behind the uptick in enrollment was the accomplishment of targets dispensed to banks for the opening of new APY accounts, it said in a statement which goes as follows:

“In this budgetary year, the reaction towards the enlistment of APY was overpowering, and more than 36 lakh Atal Pension Yojana accounts have been included till October 31, 2019, showing the development of 33 per cent in contrast with 26 per cent development during the relating time frame, last financial,” PFRDA said.

The PFRDA is controlling APY. Out of the 36 lakh new APY accounts, 27.5 lakh were sourced by public sector banks, 5.5 lakh accounts by regional rural banks and around 3 lakh accounts by the private sector and payment banks.

Among public sector banks, State Bank of India contributed about 11.5 lakh increments in APY accounts pursued by Canara Bank and Bank of India. As far as average account per branch, SBI sourced highest APY accounts pursued by Indian Bank and Bank of India.

Among RRBs, Baroda Uttar Pradesh Gramin Bank, Dakshin Bihar Gramin Bank and Andhra Pradesh Grameena Vikas Bank sourced a maximum number of APY accounts, though as far as average accounts per branch Tripura Gramin Bank, Maharashtra Gramin Bank and Baroda Uttar Pradesh Gramin Bank topped the list. This is a boom in e-governance services.

In the payments bank classification, Airtel Payments Bank has sourced around 1.8 lakh APY accounts so far in this monetary, against the yearly focus of 50,000 APY accounts.

Under private sector bank class, HDFC Bank was the top contributor regarding a number of enrollments while Karnataka Bank was the best performer as far as average account per branch.

The PFRDA has made sure to grow the subscribers base under APY by focusing on 2.25 crore individuals by March 2020, who have a place in the unorganised sector and are not secured under any social security scheme, the statement said the following:

“There is a long way to go as currently there are around 45 crore people in the unorganised sector. However, with the government support the target of providing pension coverage to these many people can be achieved, albeit with other government social security schemes,” it added.

The pension sector regulator has been arranging different promotional campaigns and town corridor gatherings for the promotion of APY through banks and taking it to the next level and contribute towards making India a pensioned society.

Continue Reading

Popular Searches

Trending