You may be a child, or you may be an adult; the idea of owning a car will surely amuse you. However, the financing part of this luxury does put a toll on your monthly expenses. There are several cases, where people opt for car loans, but end up straining their monthly budget.
Before you decide to buy a car, make sure you check a few factors like budget, fuel economy, periodic maintenance cost, and the most important of all, the amount of loan EMI. Whenever you will opt for this luxury of owning a private set of wheels, you will need to make adjustments in the monthly expenses.
For instance, your usable monthly income is Rs.50,000 and you have decided to buy a car in the range of Rs.5 lakh to Rs.6 Lakh. Initially, when you approach the car dealer, you will be asked to pay around 20% of total car amount in cash. For a car of 5 lakh, you are required to pay 1 lakh as down payment. Assuming that you pay1 lakh, you are now required to borrow a car loan of Rs. 4 lakh. Generally, companies like Magma Fincorp are known to charge 12% on car loans, along with some processing charge.
Based on the principal amount of 4 lakh, borrowed at 12% interest rate, you are required to pay Rs. 8898 as monthly installment. This figure is calculated for the maximum loan tenure of 5 years or 60 months. Apart from loan EMI, fuel expenses, tolls, and monthly maintenance will cost you around four thousand to five thousand. In this, you need to keep aside approximately Fifteen thousand every month for keeping the car.
So, before buying a car, you are required to adjust the calculated amount from your monthly expense budget. Only then it will be easy for you to enjoy the luxury of owning a car.
Car is also having their own importance in present scenario, as it would keep you safe from outer environment in every season. Also made your travel simple, time saving and safe. Everyones wish that they could have their own favorite car. But not possible for all due to their financial condition. Easyloansindia is the best online loan provider in India, one can search and apply for any types of loans through their online application. Their website can provide you best option for car loan with lowest emi.
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