If a thing that most aspire to own in their lifetime, it would probably be a car because of the excitement and buzz that it generates upon its arrival in the market. A new car on the town and it just sets the people in frenzy mode and prompts them to buy the model as quickly as possible. The riches can book the car at the very instance. But when it comes to the lower income segments, things can be different. They may not pay off the full price at one go and thus fail to bring home a car. Therefore, they require a bank or any other financial institution that can provide them an attractive loan offer to pursue their car dream. When the names of lenders doing the rounds, HDFC Bank may sit at the top of your mind, right! A premier private lender with a massive network of over 4,200 branches and 12,000 ATMs, HDFC Bank can just be an ally where you would look to apply for your favourite 4-wheeler, won't you? So, what are you waiting for? Dive into the details of HDFC Car Loan below and see whether it can fit into your budget or not. Why is HDFC Bank the Most Preferred for Car Loan? HDFC Bank has customized its car loan product to cater to specific requirements of different customer categories, be it salaried, self-employed businessmen, self-employed professionals, etc. With a loan for both new and used cars, it has been able to penetrate effectively and thereby ruling the car finance space with the highest share of 26%, leaving behind its competitors- SBI, ICICI Bank, Kotak Mahindra Bank and others. Let's figure out even more details of HDFC Car Loan. Interest Rate-8.15%-15.47% p.a. (New Cars) -14.50%-17.50% p.a. (Old Cars) Maximum Loan Amount-Upto 100% finance on on-road price (New Cars) - Upto 80% of the Valuation Price (Used Cars) Maximum Loan Tenure-Upto 7 Years (New Cars) -Upto 5 Years (Used Cars) Processing Fee- Lower of 0.4% of the loan amount or ₹ 10,000 (New Cars) - Lower of 2% of the loan amount or ₹ 5,000 (Used Cars) Foreclosure Charges-3%-6% of the outstanding principal loan balance on the date of foreclosure (Both New & Used Cars) HDFC Car Loan Eligibility- Borrowers must fulfill the eligibility criteria set by HDFC Bank to get their car loan application approved by the lender. Want to get a sight of those? Take a look at the points below. Salaried, when they apply for a loan, needs to ensure their age is a minimum of 21 years. While at the time of loan maturity, they are expected to be over 60 years of age. Meanwhile, self-employed can apply for the loan at a minimum age of 21 years. However, they are allowed to have a loan tenure which should be equivalent to the time when they attain the age of 65 years. An overall work experience of 2 years with a year of service at the current employer is the basic professional criteria that the bank seeks in salaried professionals. But it's not the only professional detail that bank looks for. It even wants the salaried candidate to earn a significant amount, which has set as a minimum of ₹ 1.8 lakhs annually. If you are falling short of the income parameter, there is an option of adding the income of your spouse or co-applicant. Self-employed, on the other hand, required to be in the same line of business for a minimum of 2 years. While they must earn a minimum of ₹ 1,00,000 to get the nod for a car loan. A post-paid mobile connection or landline is also sought by HDFC Bank for approving a car loan application. These are the common eligibility parameters that HDFC Bank seeks in a car loan applicant. However, the decision of lending depends on your income and repayment capability in line with the car you want to buy. For example-A car loan application of 20 lakhs may not be approved by the lender with an income of even ₹ 40,000 per month. Because the EMIs here will work out to be over ₹ 30,000, accounting for about 80% of the income and thus render the applicant ineligible for such a loan amount. You need to make sure the proposed EMIs remain within 60% of your monthly income to get the nod. HDFC Car Loan EMI Calculator- You can check out the Equated Monthly Installments (EMIs) you have to pay using the car loan EMI calculator. All your work of computing the EMI using the complex mathematical formula can be given a rest with the calculator. You just need to feed loan amount, interest rate and tenure to find the result. For example-A car loan of ₹ 5 lakhs at 9.20% interest rate for 7 years brings forth the EMI, total interest and overall payments of ₹ 8,095, ₹ 1,80,012 and ₹ 6,80,012, respectively. Hope you have read the information carefully and decided upon the option of HDFC Bank in your pursuit of buying a car. Remember, a successful car loan journey is contingent upon your income and repayment capacity to a larger degree. So, don't ignore them while applying for a loan.
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Personal loan is a loan product that is designed to meet all the personal requirement of the people. People can use the amount disbursed under this loan for any purpose such as the wedding of the daughter, education of the children, home renovation, business requirements or even for tours and travels. It is the fastest and quickest means of arranging funds on the credit basis. As it is an unsecured loan, no collateral or security is to be presented. Also, the borrower doesn’t have to specify the end use of the loan amount. Very fewer documents are required to avail this loan facility. Therefore, it is considered a hassle-free loan and is known as signature loans. There are various lenders that provide a personal loan in India. Each lender has the different lending policy and eligibility criteria. The borrower must check the eligibility parameters before applying for a personal loan. The personal loan eligibility criteria of few banks are given below: Personal Loan SBI- SBI offers a personal loan to the salaried and pensioners to serve their needs under the names- Xpress Credit Personal Loan and SBI Pension Loan. The eligibility criteria and documents required for both the schemes are mentioned below: Xpress Credit Eligibility Criteria:
Personal Loan HDFC- The applicants meeting the following standards are eligible to avail personal loan from the HDFC Bank:
The personal loan eligibility criteria are as follows:
Personal Loan ICICI Bank The ICICI bank personal loan to both the salaried and self-employed individuals. The eligibility criteria and rate of interest for the categories are mentioned below- Eligibility Criteria & Documentation for Salaried
Want to travel the exotic locations with your better half? Feeling the need of instant cash? A latest iPhone you want to bring at home? If that is the case and you can't do it on your own, a personal loan is something you should opt for. Actually, it is a type of lending offered by the financial institutions like banks and non-banking finance companies (NBFCs) to let you fulfill your wishes, which can be travelling to buying the latest television.
Since there are so many lenders in the market, the best practice would be to choose a one that has served a large number of customers for an extended period of time. Keeping this in mind, it is SBI that would stay at the top of your search, right. The bank's personal loan offers are up for grabs by salaried, self-employed, defence personnel, pensioners and others. You can get a maximum time of 5 years to pay off the loan. The interest rate on SBI Personal Loan ranges from 12.45%-14.90% p.a. The maximum amount of loan you can expect is ₹ 15 lakhs. Before filling the SBI Personal Loan Application Form, you would want to know further more details like the schemes it has to offer and others. So, let's start and find out all those information before you apply for the loan. SBI Personal Loan Offers-
SBI Xpress Credit Loan- You can avail this Personal loan from SBI to fulfill all your personal purposes such as travelling, marriage, education, instant cash needs, and much more. Let's have a quick look at the eligibility that the bank seeks in an individual before approving the loan. Eligibility-
SBI Pension Loan/Jai Jawan Pension Loan- Pensioners from government departments and defence personnel who are drawing a pension can be a part of this loan. Want to check out the eligibility norms you have to comply with? Look at the below mentioned points.
SBI Personal Loan Application Form- Now I guess, you are ready to apply. You have two options-Go online or stay in line. Yes, you heard it right! Applying at the website of the bank is more convenient of the two. You just need to visit the website and click Apply Now Online' link. Subsequently, you need to fill all the personal and professional details. As soon as you do the same, the appropriate loan offers will come at you. You just need to pick an offer with a maximum amount of loan at an affordable rate of interest. A reference number will be generated towards the loan. Now if you are not comfortable applying online, there is an offline option available as well. Visit the nearest branch and ask for SBI Personal Loan Application Form, wherein the details have to be filled along with the necessary KYC documents supporting proofs for identity, address, income, signature verification. SBI Personal Loan Application Status- Post the application, it is obvious that you would be keen to know the status of the same. You can check the application status online. The status will show either approved, pending, reasons for pending as well as the estimated date of loan disbursal. This was all about SBI personal loan in general. Apply for it and fulfill the dreams you have been living for years. Hope the information pointed out in the article will help you pick the right personal loan offer from SBI. Article Source: http://articles.org/sbi-personal-loan-application-a-gateway-to-fulfill-your-wish/ Mutual Funds are an ideal way to fulfill the needs of investors as per their financial goal. Therefore, it is recommended to study carefully each and every scheme before initiating any investment. As every asset class covered under mutual funds are exposed to a certain degree of risk. This would clearly be able to give a fair idea to investors for choosing their schemes, depending on their risk taking aptitude. Various types of mutual funds categories are designed to permit investors for selecting a scheme based on their risk taking capacity, the investible amount, their goals and the investment duration etc. Let's take a look at some important mutual fund schemes under the following three classifications subject to the maturity period of investment: Open-Ended : This scheme permits investors to engage in buying or selling the units at any point of time at the prevalent Net Asset Value(NAV). These funds do not restrict on the amount of shares issued by the fund. They offer units for sale without prescribing any duration for redemption. If there is high demand, the fund will continue to issue shares, irrespective of the number of investors involved. One of the prime benefits of the open-ended scheme is the liquidity that these funds provide to investors. Debt/Income: In a debt/income plan, a major portion of the investible corpus becomes directed towards investing in debentures, government securities, and other debt instruments. No matter, capital appreciation is low, this is comparatively low-risk return investment option which is suited for investors seeking a regular income. Money Market/Liquid : Money market schemes invest in short-term debt instruments and aim to provide reasonable returns to investors. This is suitable for those investors who wish to utilize their surplus funds in short-term instruments rather than waiting for some better options. Equity/Growth : Equities are a popular investment choice amongst retail investors. Although it possesses a high-risk in the short-term but investors can aim for capital growth in the long-run. If you are at your initial earning stage and focussing on long-term benefits, growth schemes could be your ideal investment avenue. The following schemes are classified under Equity/Growth plans : Index Scheme : Index scheme is a widely preferable concept in the west. These follow a passive investment strategy where your investments track closely proportionate to the movements of benchmark indices such as Nifty, Sensex etc. Sectoral Scheme: These funds invest in particular sectors such as infrastructure, IT, pharmaceuticals, etc. or segments of the capital market like large caps, mid caps, etc. This scheme offers comparatively high-risk return avenue within the equity framework. Tax-Saving : This scheme offers tax benefits to its investors. These funds are entitled to income tax deductions under Section-80 C of the Income Tax Act, 1961 with a 3-year lock-in period. Tax savings are done under Equity Linked Savings Scheme(ELSS) which offer long-term growth opportunities. Balanced/Hybrid: This scheme permits the investors to enjoy growth and income at periodic intervals. Funds are invested in a combination of both equities and fixed-income securities; the proportion is ascertained in advance and divulged in the scheme related offer document. These are suitable for the cautiously aggressive investors. Closed-Ended: Closed-ended schemes have a fixed maturity period and investors can invest only during the initial launch period referred to as the NFO(New Fund Offer) period. On the contrary to open-ended funds, new shares/units are not created by managers to fulfill the demand from investors but the shares can only be bought (and sold) in the secondary market. Capital Protection: The primary objective of this scheme is to seek protection of the principal amount while striving to deliver equitable returns. These invest in high-quality fixed income securities with a minimal exposure to equities with a stipulated maturity period. Fixed Maturity Plans (FMPs): These are the mutual fund schemes with a pre-defined maturity period. These schemes normally consist of debt instruments which have a maturity period relative to the maturity of the scheme, as a result, earning through the interest portion(known as coupons) of the securities in the portfolio. FMPs are usually passively managed i.e. no involvement of active trading of debt instruments in the portfolio. The expenses which are levied on the scheme, are hence, comparatively lower than actively managed schemes. Interval: Interval schemes operate as a combination of open and closed-ended schemes wherein it permits the investors for trading the units at pre-defined intervals. Article Source: https://article.wn.com/view/2017/02/14/Mutual_Fund_Plans_All_you_Need_to_Know/ Mutual Funds are normally advertised by the companies in newspapers, thereby, publishing the date of the launch of the new schemes. The agents and distributors are then contacted by the investors who wish to invest in those mutual fund schemes. These agents and distributors are available throughout the country work towards furnishing the desired information about mutual funds with the provision of application forms as requested by investors.
Even banks and post-offices are actively involved in providing mutual schemes to investors through the facility of an online subscription. Investors are, therefore, required to equip themselves about the objectives of mutual fund investment which infact directly relates to their financial goals. Cost associated with investing in mutual funds Entry and Exit Load: There are some charges levied by mutual fund companies to float, operate and administer a find. These charges are collected from the investors as a percentage of their total investment which are known as loads. There are two types of loads : entry load and exit load. Entry load and exit load are the charges borne by the investors to enter(purchase) the scheme and exit(redeem) the scheme. Entry load now-a-days are not pertinent on any mutual fund schemes whereas exit load varies from 0.50%-3% subject to the holding period by investors. Fees or Fund Management: The mutual fund company levies a fee which is a small percentage of the fund's total value to manage the investments on the behalf of investors. This amount is basically the fund manager's fee for taking care of all the management procedure related to the mutual fund. The fee is chargeable as a percentage of the fund's value on an annual basis. Expense Ratio : The percentage of total assets levied for administering a mutual fund is known as the expense ratio. As returns from bond funds are similar, expenses become a critical factor while comparing bond funds. Transfer/exchange fee : Investors have to bear the transfer fee at the time of shifting their investment from one mutual fund scheme to another one. Best Way to Invest in Mutual Funds in India- Invest through SIP : Systematic Investment plans are the best options to start investing in mutual funds. Every small amount invested on a monthly basis generates the capacity of giving good returns over a specified period of time. For example : An investor putting ₹ 5000 per month through SIP in equity fund with an annualized returns of 12% can fetch ₹ 25 lakhs in 15 years. Invest based on risk appetite: Investors consider to invest depending on their risk taking capability that would yield higher returns. For example : High-risk appetite investors aim to invest in equity funds, moderate risk appetite investors aim to invest in hybrid funds and low-risk investors prefer investing more in debt related funds. Invest in various categories of funds : In several market scenarios, large cap, mid-cap and small-cap funds perform relatively over a specified period of time. Hence, investors would be able to gain maximum returns by investing in different categories of such funds. Invest in sectors that are expected to outperform : High-risk funds such as sector funds are considered by those who are willing to take high risks. Such sectors have the likelihood to outperform in the near future and investors thus prefer to invest in these funds. For example : Infrastructure funds or banking funds are ideal for the investors having a short-term to medium-term horizon of 3 to 5 years. Invest in funds based on one's financial goal: Lack of understanding about mutual funds can often mislead the investors which in turn, leads to choosing the wrong funds or failure of holding the fund for the longer tenure are some of the mishaps encountered while making mutual fund investment decisions. Investors shouldn't rely upon investing just because a mutual fund scheme has given 100% returns in one year. There exists a likelihood of erosion in the capital amount of an investor in case there is a market crash. It is, therefore, advisable to invest based on the financial goal. Use STP for lump sum mutual fund investments : Investing the lump-sum amount in equity funds is one of the biggest mistakes an investor makes. This may possibly be a good strategy taken towards market corrections. However, when markets are booming or when an investor is unaware of the market's direction, the best strategy lies in investing a lump-sum in short-term debt funds or do STP(Systematic Transfer Plan) to equity funds over a stipulated period of time. By doing SIP to equity fund from debt fund leads to risk minimization of investing a lump sum in the mutual fund. Article Source: http://wishfinblogs.kinja.com/mutual-fund-investment-your-suitable-investment-vehicl-1792291491 car is a dream that dominates our thought whenever we hustle around in public transport like bus, metro, and other mediums. The convenience and the style statement that emanate from a car is inexplicable, to say the least. To encash this dream, we usually apply for car loan as it allows us to ride our dream 4-wheeler with easy-to-pay installments. These installments constitute a portion of both interest and principal amount payable on a monthly basis. As far as lenders are concerned, there are plenty in the market ranging from small to large players looking to cater your car need. Different lenders have different offers with respect to interest rate, loan amount, processing fee and others. For example- An interest rate difference of 2%-3% on a 7-year car loan of ₹ 5,00,000 can result in an EMI difference of ₹ 1,000-₹ 1,500. While the difference between the overall interest outgo could be around ₹ 60,000 or so. I hope, you are aware of the critical role that interest rate plays in your car loan journey. Similarly, other factors are also important. So, before opting for a car loan, ensure you are clear of each and every factor associated with the same. Summary of Car Loan Offers at Several Lenders HDFC Bank Car Loan-
SBI Car Loan-
ICICI Bank Car Loan-
Kotak Mahindra Bank Car Loan-
So, these were the offers of top car loan financing companies in India. Keep a close eye on the car loan interest rate, processing fee and other charges to be borne before choosing a car loan offer. Now that you have the information on your hand, we hope you would make a sound decision on the car loan. Owning a home is the most cherished dream of people. But most people drop this idea due to lack of funds. Now there is no need to compromise on your dreams as LIC Housing Finance home loan is there to assist the aspirant home buyers. The company helps the potential home buyers by providing home loans at competitive rates. The company provides the home loan for the purchase, extension, construction and repair of the house. The customer can apply for the housing loan as per his requirement. The details of loan schemes are given below:
LIC Home Loan Details: Loan Amount - The company grants 85% of total cost of the property for loans up to ₹ 20 Lacs; 80% of total cost of the property for loans above ₹ 20 Lacs and up to 75 Lacs; 75% of total cost of the property for loans above ₹ 75 lacs with minimum amount subject to ₹ 1,00,000. Repayment Period - The maximum loan tenure for the salaried individuals is 30 years while for self-employed the repayment term is restricted to 20 years. Processing Fees - The company charges zero percent processing fee on the loans. Mode of Repayment - The loan amount is to be repaid in form of Equated Monthly Installments LIC Housing Loan Interest Rates: The interest rate prevalent on various slabs is given below:
Eligibility Criteria: In order to take the loan, the applicant must meet the standards set by the lending company. The eligibility criteria for availing the benefit of housing loan from LIC Housing Finance is mentioned below:
Documents Required for LIC Home Loans: Loan applicants have to produce the following documents in order to apply for the LIC home loans: 1. General Documents
2. Salaried Applicants In addition to the aforestated documents, salaried applicants must provide the following documents:
3. Self-Employed Applicants Apart from providing general documents, self-employed applicants need to submit the documents as under:
LIC Housing Finance EMI Calculator: The borrower can compute the installment amount he has to pay each month to settle the loan availed using the EMI calculator. The housing loan calculator is an automatic device that aids in the computation of EMI amount. The computed EMI amount constitutes a part of principal repayment amount and interest amount. It even reveals the total repayment amount the borrower will be paying by the end of the loan tenure. It tells how much interest the borrower has to pay on a certain loan amount. The calculator makes the calculation quick and simple. It is easy to use the calculator. The user just has to enter the information regarding the loan amount, tenure and rate of interest in the relevant fields. After processing the data the results will be displayed on the screen. Features & Benefits LIC Housing Finance Home Loan: The features and benefits of the housing loan provided by the company are as follows:
Article Source: http://www.imfaceplate.com/aashnabatra/revamp-your-housing-dreams-with-lic-housing-finance Do you need immediate funds for your daughter’s marriage? Do you want to go on a mini vacation to Milan but don;t have enough money? Do you wish to provide your child with the best education? Want to repair your old house? Do you require urgent money for medical treatment of your family member? Is shortage of finance is forcing you to put everything on hold. If yes, don’t let your dreams and wishes die when axis bank personal loan is there to fulfil them. Yes you read it correctly. Axis bank offers timely loan to eligible applicants who are in need of a financial assistance. The maximum and minimum amount that can be secured from the bank is Rs. 15 lakhs and Rs. 50,000 respectively. The tenure for the same lies in the range of one to five years. You even have the provision to carry over your existing loan from any other bank to Axis bank. You can earn reward points when you obtain a loan from the bank. Check out this article for more information about the product.
Eligibility criteria: In order to eligible for the loan, the applicant should belong to any of these-
Documents required: Completing the documentation work is a very important task while availing a loan. Have a look at the documents needed for a personal loan here-
Interest rates and processing fee: Axis bank offers a personal loan to suitable applicants at an interest rate between 15.50% to 24%. The processing fee for the same is up to 1.5% to 2% of the loan amount availed along with the applicable service taxes. There are no prepayment or foreclosure charges as such. Axis bank personal loan EMI calculator: A wise man has said to always look for the EMI before obtaining a loan. This holds a lot of prominence. After all, you need to be aware about the amount of installments you will be paying each month to repay the amount you have taken. What if the EMI causes a hole in your pocket and disturbs your monthly budget? Calculating the EMI can turn out to be a very complex process for anybody. But why to worry when axis bank personal loan EMI calculator has been made to calculate your installments. The tool gives you information related to your EMI within few seconds. And the best part is you have to simply do nothing but enter your desired loan amount, rate of interest and term period. Then you have to wait for the magic to begin. You will soon get to know about your EMI. still not clear with the tool, let’s make it easier with the help of an example. Suppose Ria Jain, an English Literature professor at the University of Delhi wants to go on a trip to Paris. She approaches Axis bank for a finance of Rs. 2 Lakhs. The bank gives her the same after completing all the formalities, at an interest rate of 16% for a period of five years. Now, let’s check out the magic of this tool. After the instant calculation, you can find out that Ria will have to pay an EMI of Rs. 4,864 each month to fully repay her loan. This hassle free calculation has been only possible due to this very useful EMI calculator. Article Source: https://wishfin.blogspot.in/2017/02/render-all-your-dreams-with-axis-bank.html A mutual fund is an investment which permits all investors to access a well-diversified portfolio of equities, bonds or other securities wherein each investor has a share in the surplus or deficiency of the fund. The allotted units are issued and can be redeemed as required. The fund's Net Asset Value(NAV) is ascertained each day.
The mutual fund companies receive your money and invest it in the financial markets. It is a suitable mechanism for people who wish to invest but scared of the complexities involved in the markets. The beauty of mutual funds is then only when a person with an investible surplus of a few thousand rupees can invest and realize same returns as anyone else. Mutual Funds can be open-ended and closed-ended. But most people acknowledge all mutual funds to be open-ended, while considering closed-ended funds in another category. Open-Ended Funds: These funds are issued and redeemed their shares at any time. They are sold off at the prevailing NAV from and to the mutual fund, on any business day round the year. It generates a high degree of liquidity to investors. Closed-Ended Funds: These funds come up with a fixed maturity period. An investor has the provision of buying these funds only when New Fund Offer(NFO) gets released in the market. Afterward, the redemption of units is possible only at their fixed maturity date. These funds can readily be liquidated by investors through buying and selling them on the exchange where they are listed. Load: This is a form of an expense which is collected from an investor as a percentage of their total investment made towards the fund purchased or sold, referred to as a load. These are the charges required to be paid by an investor in order to float, operate and regulate a fund. Entry load and exit load are the charges levied on the investors to enter(purchase) the scheme and exit(redeem) the scheme. Entry load now-a-days are not applicable on any mutual fund schemes whereas exit load varies from 0.50%-3% depending on the holding period by investors. Benefits of Investing in Mutual Funds India: Small Investments : Even with small denominations as low as few thousand rupees can be used for investment, which is invested across the markets. Professional Management : The professional experts from financial industries manage the money collected in a mutual fund. They assess the markets for selecting best pick investments that reap better returns to investors. Risk Diversification : An investor with a small amount of money can only be able to invest in one or two stocks/bonds, thus increasing risk. However, a mutual fund will diversify the risk by investing in several sound stocks or bonds. A fund usually invests in companies across a broad range of industries, so this leads to spreading of risk. Transparency : Mutual funds provides a complete picture of the investments made by their several schemes and the proportion invested in each category of asset. The information is acquired by the investors in order to assess the right pick for themselves in order to help them achieve their financial goal. Liquidity : Open-ended funds generate liquidity once it gets sold to mutual funds at NAV based prices based on their exit loads whereas closed-ended funds can be sold on the stock exchanges where they are traded. Choice: The funds can be selected from a vast category of mutual fund schemes. This allows the investors to select the best pick as per their risk and return expectations. Systematic Investment Plan: It is a type of investment scheme provided by several mutual fund companies. An investor can invest a small amount at regular intervals (weekly,monthly, quarterly) into their chosen mutual fund. For a retail investor, SIP provides a disciplinary and passive approach to investing for creating wealth in the long-term. Here, the power of compounding rule works well for building wealth. Since the amount is invested periodically (often on monthly basis), it also minimizes the impact of market volatility. Benefits of SIP over Lump-sum investment:
The returns realized through mutual fund investment can be achieved in the following ways: Dividends: The dividends are earned by the unit- holders through mutual funds. The dividends are distributed from the income generated through dividends on stocks and interest on other instruments. Capital Gains : Investors derive capital gains on mutual funds. If the fund sells appreciated value of securities, it earns capital gains. These capital gains are distributed by most of the funds to investors. Profit from higher NAV: The NAV of the fund increases if there is an increase in the value of fund's assets. This way, investors can make the profit by selling back their units to the fund house. Article Source: https://article.wn.com/view/2017/02/09/Get_Started_Investing_in_Mutual_Funds_India/ Riding a car with friends is what we all want to experience on most occasions. But even more important is to remove the hassles of public transport in our day-to-day run from home to office and vice-versa. How can you do that? By buying your own car. For that to happen, you may have to apply for a car loan. Paying the full price of the car may not be feasible for most as it requires to cough out lakhs to crores at one go, depending upon the models one chooses to buy.
A car loan is inevitable so does the cost that comes with the same. The costs of EMI, interest, and others are important considerations for an enjoyable car loan journey. You can calculate all that. Do you know, how? Any answer, buddy? Don't know. It's the car loan calculator that will do all the calculation for you. So, let's get started with the nitty gritty of car loan calculator. What is Car Loan Calculator? Car Loan Calculator is a simple tool to find 'What' and 'How' of a car loan. In simple words, it defines the actual cost to be borne by a borrower towards a loan. But the definition of car loan calculator does not end here. It also says how much loan can you get for your dream 4-wheeler. Further, it demonstrates as to how much you have to pay on interest and principal portions year-on-year till the expiry of the loan tenure. Types of Car Loan Calculator: Based on the variations in functions, there can be different car loan calculators. Basically, these include Car Loan Eligibility Calculator, Car Loan EMI Calculator, and Amortization Calculator. Let's discuss each of them separately. Car Loan Eligibility Calculator: The eligibility calculator determines the amount of loan a lender can disburse you based on your income and savings. Well, the general rule says, more the income greater will be the eligibility. But as different people can have varied saving patterns, the loan eligibility can be higher or lower than one expects to. For example- You earn a salary of ₹ 30,000 per month and save upto ₹ 12,000. The calculator will initially calculate the per lakh EMI on the existing interest rates and the longest repayment tenure. Suppose if you apply for a car loan at SBI, which offers an interest rate of 9.20%-9.25% per annum for a maximum period of 7 years, then per lakh EMI will be 1,619-1,622. The loan eligibility will be calculated via a formula as shown below. Loan Eligibility- ₹ 1,00,000 x savings/per lakh EMI - ₹ 1,00,000 x 12,000/1,619= ₹ 7.41 lakhs - ₹ 1,00,000 x 12,000/1,622= ₹ 7.39 lakhs So, expect to receive a loan worth ₹ 7.39 lakhs-7.41 lakhs to buy your favourite car. Car Loan EMI Calculator: The EMI calculator or say interest calculator will indicate the repayment amounts in terms of principal and interest each month. EMI, an abbreviated form of Equated Monthly Installment, consists of both principal and interest amounts payable towards the loan. There is a formula below by which you can calculate the EMI. [ P x R X (1 + R) ^ N] / [ (1 + R) ^N – 1] P= Principal Amount R=Interest Rate N= Number of Monthly Installments Let us take an example to understand the function of the calculator. Example- Shivam wants to apply for a 5-year car loan of ₹ 7 lakhs at HDFC Bank, which offers him the same at 9.65% per annum based on his eligibility. The indicative EMI will be ₹ 14,753, while interest outgo and overall repayments are expected to be ₹ 1,85,760 and ₹ 8,85,760. Car Loan Amortization Calculator: The amortization calculator enables you to get an idea of the interest and principal repayments, while also indicating the outstanding balance of the loan each year. The year-on-year track of loan repayments can help you plan your loan journey better. Benefits of Car Loan Calculator: The benefits of car loan calculator can be gauged from the points below.
Article Source: https://article.wn.com/view/2017/02/09/Did_You_Know_These_Facts_About_Car_Loan_Calculator/ |
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