When you are all set to buy your commercial vehicle through a vehicle loan, you need to consider the most common aspect of it, the EMIs. EMIs are fixed amounts that need to be paid on a monthly basis. EMIs are calculated with various factors considered at the time of buying a vehicle. To reduce your hassle of calculating these EMIS, several finance companies provide their vehicle loan EMI calculator. You need to enter the asked details into it and the calculator will estimate the EMI you have to pay for a specific vehicle. In order to understand the working of EMI calculators better, let’s look at some of the important factors to consider while using a motor vehicle loan calculator.
Loan Amount
The loan amount is the first and foremost factor involved in a vehicle loan EMI calculator. You need to enter the loan amount you are expecting to borrow. Remember that you may or may not get the exact amount that you enter in the loan amount field. The EMI calculator is designed to give you an estimate of the EMIs you have to pay based on the loan amount you enter.
Duration of the Loan
After entering the loan amount, you need to enter the tenure or duration of the loan. Usually, the loan tenure varies from 12 months to 84 months. You can choose the expected duration of the loan. It is recommended to choose the duration of the loan based on your financial conditions.
Processing Fee and Interest Rates
Lastly, the processing fee and interest rates are the essential factors involved in calculating the EMI of a vehicle loan. Generally, car finance companies levy processing fees from 1% to 3%. The processing fee varies from company to company. Also, the interest rates are charged by finance companies between 9% to 15%. The interest rates can vary based on your location, monthly income, etc.
So, these are some of the important factors to consider while using a vehicle loan EMI calculator. You can use this tool to plan the purchase of your commercial vehicle and buy it in a hassle-free manner.
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