Aman, a management graduate working with a popular FMCG company, wanted to finally live his dream of owning a car. Being an automobile enthusiast from his childhood, the first thing Aman wanted to buy from his earnings was a hatchback which he could call his own and afford. As Aman has just started earning, he wasn’t sure how much money he would have to pay as down payment, how much loan he can take and what would be his loan EMIs.
A loan calculator online was a useful tool for him, as it assisted him right from planning how much loan he can take, the EMI he can afford, knowing the interest outflow, the rates offered by various banks and NBFCs and for applying the loan online at the bank of his choice.
But there are as many calculators online today to confuse you.
So here is a look at what to look for in a car loan calculator, to make sure that it is giving you a complete and detailed insight into your loan application process, before you take your plunge.
1: Check if the calculator is easy to use
A loan calculator should be designed to help you choose a loan in a simple way. If you find that the car loan calculator is too complicated or seeks way too little information, it is not a well designed one.
A loan has many variables, like the loan amount you are eligible for, the down payment required based on the vehicle’s ex-showroom price and a provision to change interest rates and tenure. On entering these inputs, the calculator will instantly generate the results. An ideal car loan calculator should offer the maximum possible fields so that you can get a clear view of the loan, EMIs and other details.
2: Is it giving the required information?
Once you find that the loan calculator is easy to use and gives instant results, the second most important yardstick is to see if it is giving detailed information of all that you need.
Some key elements of any car loan that a good car finance calculator should offer include the amortization schedule, which projects your principle and interest outgo, your monthly EMI, how the pre-payments are adjusted and other expenses as per your tenure. If your car loan calculator does not offer such detailed information and just gives you the loan EMI only, is better to avoid.
3: Can you explore multiple lending options?
A common dilemma faced by every loan borrower is choosing the right loan provider for the loan. This includes choosing between a bank, NBFC and a financial institution that is offers the best interest rate. A loan calculator will help you in choose the right loan for your needs.
A good car loan calculator will not only give you the loan details, but also offer a comparison between the rates of various loan options available with different financial institutions. This helps you pick the right loan for your need.
4: Is the calculator offering extended application activities?
Once you have finalized the right car loan for your needs. The next step is to facilitate the loan. Check if your auto loan calculator can help you to place a loan request or application online, with the bank of your choice from the same window.
An efficient loan calculator tool will offer combined options of loan details as well as placing an online application. You can track the progress of your loan application till the final disbursal. It will also provide user reviews for easy decision making.
If not, it is better to move on to some other options which can double up as your gateway to apply for a car loan instantly.
5: Is the car loan calculator popular with users?
As many people make use of online car loan calculators to get a financial insight for their car loan, a popular loan calculator can be shortlisted by tracing its popularity. Make use of automobile forums and financial forums where user remarks about a good car loan calculator can be helpful.
You can also go through user reviews which can help you to pick a bank, place an online application and then track your loan progress till the final disbursal.
Taking car finance may be common, but picking the right car loan calculator tool is equally important, as it eases out the process and helps you to plan your finances efficiently.
YOU MAY ALSO WANT TO: Check out our EMI calculator for your needs – Car Loan EMI Calculator