Car loan Calculator UAE

A car loan calculator helps you compute the car loan EMIs anytime and anywhere. Enter a few inputs such as loan amount, tenure and estimated interest rate and you will figure out how much money you are going to spend on the car loan. Make an informed decision by calculating the estimated car loan EMIs with this handy tool.

What is a Car Loan Calculator? 

A car loan calculator is an online tool that helps you to determine your EMIs and the interest rates you will pay during the car loan tenure. It has a simple and user-friendly interface that allows you to plan your budget efficiently.

It offers insight into how much funding you need to buy your dream car. Put some few inputs- loan amount, loan interest rate, and loan tenure, it will quickly provide you with the accurate EMI amount.

Before planning a car loan, it’s important to calculate the Equated Monthly Instalments (EMIs) with the use of a car EMI calculator.

The Formula of Calculating a Car Loan

The standard formula for calculating an auto loan is as follows:

E = P x R x (1+R)^N / {(1+R)^N – 1}

The components stand for-

• E = Monthly payable EMI
• P = Principal amount
• R = Interest rate
• N = Car loan tenure

Note: You can calculate the EMI based on fixed and floating interest rates.

How to Use Policybazaar.ae’s Car Loan Calculator?

Here is how you can use a car loan calculator on the digital platform of Policybazaar.ae -

• Click on the ‘Banking Products’ drop-down on our homepage.
• Under ‘Financial Calculators’, choose ‘Car Loan Calculator’.
• Enter your car price, down payment, loan tenure, and interest rate in this car loan EMI calculator.
• On providing the mentioned details, you will immediately get the results.

Note: Besides the instalment amount, you will also get the total amount of interest as well as the total payable amount (principal + interest) on your screen.

Benefits of Using Car Loan Calculator UAE

Here are some of the top benefits offered by car loan EMI calculator:

• Budget Planning

The primary objective of using a loan calculator is to plan a budget. When buying an expensive car, you obviously require a substantial loan.

With a car loan interest calculator, you can get a clear picture of how much amount you need to pay towards a car loan. This will enable you to plan future finances appropriately.

• Time-Saving

You don’t need to waste your valuable time calculating the complex car loan finances manually. An EMI calculator offers quick results after putting in some basic inputs and saves you precious hours.

• Accuracy 

Unlike manual calculators, an online car loan finance calculator gives accurate results. On the basis of the result, you can make the financial decision to buy a car.

• Easy to Use

Car loan EMI calculator UAE is available online and can be accessed from anywhere. By entering a few inputs such as loan amount, estimated interest rates, and loan duration you can get the result instantly.

• Comparison 

It’s easy to compare various car loan options from various lenders using a car loan calculator. This way you can choose the most appropriate loan option to finance a car.

Which Factors Can Affect Your Car Loan EMI?

The following factors can influence your car loan EMI:

• credit Score - Your credit score plays a key role in determining the car loan interest rate. A credit score defines your creditworthiness and reduces the risk factors for lenders.

• Car Loan Tenure - Another factor impacting your car loan EMI is the loan tenure. Shorter loan tenure means low interest rates but higher monthly payments. On the other hand, long tenures come with low EMIs but high interest rates.

• Down Payment - A down payment is the amount you initially made while purchasing a car. A higher down payment amount contributes to low interest rates and risk for the lender. Furthermore, you can save more on car loan interest.

• Income and Employment History - A good work history combined with a steady income helps to ensure reduced EMIs. Lenders, however, evaluate your employment history and income to determine your ability to repay the loan. On the basis of this, your monthly car loan EMI is determined.

Accuracy of Car Loan Calculator UAE

Calculating car finance is such a complex task, but it can be easy with the use of a car loan calculator. The results derived from the online loan calculators are based on inputs such as loan tenure, interest rates, and loan amount. Consequently, it’s highly accurate.

However, the actual car loan EMIs can be varied as lenders add additional components to the sum amount, such as processing fees. For initial calculations and planning a budget, car loan calculators are worthwhile.

Note: It is recommended to consult with a loan advisor or bank for a detailed breakdown of car loan EMIs

Frequently Asked Questions