Car Loan
Car Loan
Owning a car was once a luxurious commodity to have. But in today’s economically developing world, a car is a necessity and convenience to travel from one corner of the ever-expanding city to the other.
Though everybody may not have enough cash to purchase the car with a lump-sum payment, numerous lenders can help you realise your dream of buying the car through a car loan.
Applying for a car loan is now hassle-free, easy, and paperless. Just make a few clicks, and you can submit the car loan application form online. Almost every bank today offers car loans at attractive interest rates. Based on one’s affordability, it is now quite easy to take a car loan and then pay EMIs without really biting into a person’s finances.
Car Loan EMI Calculator
Try the ClearTax Car Loan EMI Calculator to find out the EMI you will have to pay every month for a given loan amount. Just enter the values for the fields, such as the principal loan amount you are looking for (P), the loan tenure (N), and the rate of interest ®, to find the EMI you will have to pay to clear the loan.
Factors Affecting Car Loan
Credit score - Your lender will enquire about your credit score to understand your creditworthiness. Based on your report and score, the lender will take a call on the loan amount they are willing to lend you and the associated terms and conditions.
Debt-to-income ratio - Lenders assess your income and the commitments you have to cater to at the end of the month to see if the new car loan and its EMIs fit in your budget. The lender will determine your ability to take a new loan and stand by it through the debt-to-income (DTI) ratio. If you have a high DTI score, you will get a lower loan amount irrespective of your income. There is the risk of your loan terms being stringent.
