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Union Bank of India Car Loan EMI Calculator

One need not think twice before taking a car loan today. It is one of the most accessible financial assistance available in the market. With many car loan options floating in the market, owning a car has become easier than ever before. It has become affordable to buy a car of your own choice. Financial help given by banks such as Union Bank of India car loan allows you to calculate the Equated Monthly Instalments (EMIs) to be paid back towards the loan. The monthly outflow can be determined with the Union Bank of India Car Loan EMI Calculator. This advance planning helps you manage the overall financial situation during the term of the loan without having to give up any other financial obligations. Read on for more information on car loans and the Union Bank loan calculator.

What is a Car Loan EMI calculator?

A car loan EMI calculator helps you decide the monthly payments of your car loan and thereby manage your overall finances during the period of the loan. This car loan calculator is available on all major bank websites and leading financial services provider like www.creditmantri.com. It is quite simple to use as you need to feed in the loan amount, interest rate applicable and the time period of the loan. It will show the expected monthly instalments that will be required to be paid. You can also use many permutations and combinations of the loan amount, interest rate and loan term period to arrive at a comfortable monthly payment.

What is a car loan and how is an EMI calculated?

A car loan is simply money borrowed to buy a car. You might not have enough funds to purchase a car of your choice. A bank or a lending institution lends the money that is required to buy a car and you can return the principal amount with interest over a period of time in monthly instalments. Normally, the car that you buy is treated as the security for the loan. This means you do not have to provide a collateral for the car loan. In case you are not able to repay the loan amount, the lender or the bank has the right to take back the car from you and sell it to close the loan.

The monthly instalments or the Equated Monthly Instalments (EMIs) are decided on the basis of the principal amount being taken as loan, the duration of the car loan and the interest rate applicable. The EMI is a fixed amount during the tenure of the loan and can be calculated through the Union Bank loan calculator. The rate of interest at which you would be taking the car loan is an important component of the monthly outflow. As you start repaying the loan amount, the interest component starts decreasing and the principal amount becomes the largest part to be repaid.

EMIs are calculated on the basis of your loan eligibility, current interest rates prevailing in the market, principal amount that you intend to take and the duration of the loan. You can work out the expected EMIs by using the Union Bank loan calculator and ensure that it does not affect your financial status during the course of the loan.

How does Union Bank of India car loan calculator work?

The Union Bank EMI calculator helps you understand the monthly payments to be made to close the loan taken. It is quite a simple tool to use wherein the principal amount being borrowed, interest rate applicable and the intended period of loan (in months) is to be entered. The EMI calculator shows the estimated monthly payment to be done. Additionally, the car loan EMI calculator shows the average rate of interest that you would be paying and the interest being paid on a monthly basis. You can also request for a regular Union Bank car loan statement to keep track of payments and balance loan amount.

Features of Union Bank of India car loan EMI calculator

  • The Union Bank EMI calculator is simple and easy to understand. You would just need to feed the required figures and the EMI calculator throws up the monthly payments.
  • If the tenure of the loan is longer, then your EMI would be lesser on a monthly basis. You can change the tenure of the car loan and calculate the EMIs to suit your own needs.
  • The Union Bank car loan interest rates are quite competitive in the market. Hence, it helps you get one of the lowest EMIs (per lakh) amongst other car loans.
  • You can also change the principal amount or interest rate or the duration of the loan on the Union Bank EMI calculator many times over till you can reach a comfortable EMI for your loan.
  • The Union Bank car loan EMI calculator is available for usage free of cost on their website.

Factors affecting Car Loan EMI Calculator

Principal amount of Loan

You must calculate your current financial situation in terms of regular income, debts to be paid and other financial obligations before borrowing a car loan. It is important to estimate the total amount of loan to be taken as this needs to be repaid with interest over a period of time. While the amount will be paid through EMIs, it should not become a burden in the future. Union Bank car loan offers financing upto 85% on the on-road price of the car.

Duration of the loan

The loan tenure, that is, the period in which you will repay the loan amount with the interest is one of the most critical factors. If the loan tenure is less, then your EMIs will be higher. In case, you are looking to keep your monthly expenses low, then it is advisable to take a longer duration of car loan. The maximum tenure of the car loan offered by Union Bank is 84 months.

Rate of Interest

Any loan that you take from the bank attracts a particular interest rate with which you can repay the loan amount. Essentially, you will be paying a certain amount over and above the principal amount of loan that you are borrowing. Union Bank car loan offers flat interest rate currently. This means the interest amount payable remains the same during the entire course of the loan and does not get affected by market conditions. This is an advantage if you are looking at a fixed amount payable every month.

Why does your credit score matter?

While it is easy to apply for Union Bank car loan online, it is very important to assess your eligibility for taking this loan. The single most important criteria used by all banks is to check for your credit score. If your credit score is low, it is suggested that you first repay all your existing debts and then apply for a car loan. This will help in avoiding a rejection on your car loan application.

You can very conveniently check your credit score online through bank websites or financial service providers like www.creditmantri.com. There are many criteria for determining your credit score. A credit score assessment takes into account your current liabilities like home loans, personal loans etc. and your credit history like loan repayments, credit card payments etc. It also assesses your financial positions on the basis of your current regular income. If you have a good credit score, it helps in negotiating better car loan terms with the bank. The overall assessment of your current financial situation helps in budgeting for your future financial requirements too.

Growing Demand for cars in India

The car market in India has changed leaps and bounds in the last decade. With a fast growing economy and population, it is not a surprise that all global car brands want a piece of this market. This allows a numerous car model options available to the buyer of today. And not just purchase a car, after sales service and maintenance schemes have become influencing factors in buying a car.

This is also fuelled with the growth of car loans in the country making the ownership of a 4-wheeler more affordable. For example, one call to the Union Bank car loan customer care will give you all details of a car loan and representative is assigned to you to make the entire experience with the bank a hassle free one.

People also have easy access to new car models coming into the market and hence, are able to have the foresight to manage their finances to buy a car. It is also safe to say that the easy availability of car loans has a direct impact on the car sales growth in the country. Potential owners are aware that car dealerships have tie-ups with banks and financial institutions to quickly turn aid purchase decisions. One can easily access information on both cars and loans at the tip of the fingers by visiting their websites, mobile applications, social media or toll free number.

Car loan EMI calculator summary

Even though you may be eligible for a car loan, it is very important to ascertain your monthly payments once the loan is taken. You can easily calculate this through the EMI calculator available with banks and financial service providers like CreditMantri. The website offers different types of financial calculators like Personal Loan calculator and Income Tax calculator. It is quite easy to use this tool to arrive at your monthly outflow for repaying the loan amount. It also shows a detailed break-up of the monthly payment like loan amount and interest components. One can use this EMI calculator many time over, using different loan amounts, duration and interest rate to check your capacity for borrowing.

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