People opting for car loans have increased in huge numbers because of reducing rates and easing of the process. Most of the banks offer car loans at competitive rates and highly flexible loan tenure. The State Bank of India is one of those banks that provide car loans at highly affordable rates. The processing of the loan application is also very quick and all the process has been digitised. The bank has a reputation of disbursing the loan amount very quickly.
SBI offers its customers the SBI EMI Calculator that helps to calculate and plan the car loan. Using this calculator the applicant can check how much he needs to pay the equated monthly instalment (EMI) and the total interest amount that has to be paid over the tenure of the loan. Using the calculator is an extremely easy process. The user just needs to fill in the required details and the EMI and interest payable is displayed on the screen.
Here is the detailed process to use the SBI car loan EMI calculator:
- The user needs to fill the total loan amount that he wants to take to purchase his car. It is worth noting here that the total amount of the vehicle need not be entered.
- In the next box, the user needs to enter the loan tenure. This tenure should be entered in the number of months for which the loan has to be taken.
- In the last box, the user has input the interest rate that the bank has proposed. The interest rate depends highly on the financial history of the applicant and his previous engagement with the bank. A person with a better financial history, wherein he has cleared his dues on time and has cleared all his credits, gets the loan at a lower interest rate than the person who has frequently defaulted in credit repayments.
- Once these details are fed in the calculator, the user has to click the calculate button.
- The calculator then calculates the EMI amount and the total interest amount for the input set of data.
- In case the user wants to re-enter the details, he has to press the reset button. Once this button is pressed, the data is flushed and the user can input fresh data again in the calculator.
In order to get the car loan from SBI at lower interest rate, the applicant should ensure that he has a sound credit history. It will help him to get the loan at low interest rates. Another deciding factor for lower interest rate is the past relationship of the applicant with the bank. If the applicant has been a loyal customer of the bank and has availed its services like savings account, credit card, etc., he is likely to get the loan at lower interest rate.
The car loan EMI calculator helps the applicant to find out the amount he would have to pay per month and the total interest that would be needed to be repaid during the loan tenure. It helps the applicant to plan his car loan accordingly so that he does not put extra strain on his daily finances.
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