How to Calculate EMIs for Used Car Loan

See how to check the EMIs of your used car loan. Discover how to use online EMI calculators and read about the factors that influence your EMIs.
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How to Calculate EMIs for Used Car Loan
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5 min read
25 July 2023

Loans for used cars have become a popular choice for many car buyers over the last few years. This is mainly because of how cost-effective and easy to apply they tend to be.

As attractive as they may seem, it is important that you understand the details of your equated monthly instalments (EMI). This will go a long way in ensuring a smooth and stress-free journey to owning your dream car.

How to calculate your Loan EMIs

Calculating your used car loan EMI is a straightforward process that involves three key components: the loan amount, the interest rate, and the loan tenure.

The formula for EMI calculation is:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

Where:
EMI = equated monthly installment
P = principal Loan amount
R = monthly interest rate (annual interest rate divided by 12)
N = number of monthly installments (Loan tenure in months)

Additional read: All you need to know about used car loan

How to use the online EMI Calculator

Using an online EMI calculator can help you simplify the calculation process of your EMIs. Here is how to use an online EMI calculator:

  1. Visit the used car loan EMI calculator on our website
  2. Enter the loan amount that you intend to borrow
  3. Input the applicable interest rate
  4. Select the loan tenure (in months) from the range of 12 months to 84 months
  5. Your EMI, along with the total interest and total amount payable will be displayed

Factors that impact your EMIs

Several factors influence the amount of your used car loan EMIs. Understanding these factors can help you make informed decisions while choosing a loan:

  • Loan amount: The higher the loan amount, the bigger the EMIs will be.
  • Interest rate: A higher interest rate will result in bigger EMIs, while a lower rate will reduce the monthly instalments.
  • Loan tenure: Extending the loan tenure will lower your monthly EMIs, but it may lead to higher overall interest payments.
  • Down payment: A larger down payment can reduce the loan amount, resulting in lower EMIs.
  • Credit Score: Your creditworthiness affects the interest rate offered by lenders, and your EMI terms.

By understanding the EMI details, you can make informed decisions and decide your loan amount accordingly. Bajaj Finance offers a used car loan of up to Rs. 1.02 crore with competitive interest rates.

Additional read: Is a used car loan a smart choice?

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals. 

You can use the Bajaj Finserv App to: 

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  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions. 
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs. 
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators 
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Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

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