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Personal Loan For Buying a Car on EMI

Owning a car is no longer just a status symbol but a utilitarian necessity required to navigate the modern urban landscape. Having your own car offers convenience, flexibility, and freedom of mobility. However, purchasing a vehicle outright may not always be feasible for everyone. Therefore, you need to buy your dream car on EMI. This way, you can spread the cost of your vehicle over a specified period and cruise the streets stress-free.  

Allow us to inform you about the various benefits of taking a personal loan to purchase a car on EMI and all the different types of cars you can buy by opting for car loans.

Benefits of Buying a Car on EMI

Loan Amount and Interest Rates: When opting for a car on EMI, the first thing to consider is the loan amount. Nowadays, lenders offer flexible loan amounts based on the price of the car you wish to purchase, ensuring that you can finance the vehicle that best suits your needs. Whether you are eyeing a budget-friendly hatchback or a luxurious sedan, you can avail of competitive interest rates tailored to fit your financial circumstances.

Down Payment and Loan Tenure: The down payment is an essential component of taking a car on EMI. It represents a percentage of the car’s price that you pay upfront, reducing the loan amount and the subsequent monthly installments. Most loan providers offer flexible loan tenures, allowing you to select a duration that suits your preferences. A longer tenure results in smaller monthly payments, while a shorter tenure helps you pay off your debt faster. 

EMI Calculation and Repayment Options: Equated Monthly Instalments (EMIs) are an essential part of buying a car on EMI. EMIs include both the principal amount and the interest, distributed evenly over the loan tenure. You can use Finnable’s Car EMI Calculator to determine the most suitable installment amount based on your required loan amount, interest rate, and tenure. 

Lenders may provide convenient repayment options to ensure hassle-free payment. Whether you prefer automatic deductions, online transfers, or traditional bank deposits,you can find a loan provider who accommodates your preferred method. This way, you can easily manage your finances while repaying your car on EMI

Quick and Easy Loan Processing: By visiting the lender’s website or branch, you can begin your car on EMI application process. Rest assured that your car loan will be processed swiftly, allowing you to hit the road in your dream car without unnecessary delays.

How to Buy a Car on EMI?

With a personal or car loan,  you can purchase a wide variety of cars on EMI. Here are a few of the best options: 

  • Tata Tiago EV: The Tata Tiago EV is an all-electric version of the popular Tata Tiago hatchback. It is designed to offer eco-friendly mobility with zero emissions. The Tiago EV features an electric motor and a high-capacity battery pack, providing a decent driving range on a single charge. 
  • Tata Nexon: The Tata Nexon is a stylish and compact SUV that has gained popularity for its robust build quality, safety features, and competitive pricing. It boasts a striking design with sharp lines and a bold stance. The Nexon offers a choice of petrol and diesel engines, delivering a good balance of performance and fuel efficiency.  
  • Honda City: The Honda City is a well-established name in the mid-size sedan segment known for its refined performance, spaciousness, and premium features. It combines elegance with a sporty design, offering a comfortable and upscale driving experience. The City is equipped with advanced technology and convenience features, such as a touchscreen infotainment system, automatic climate control, and a range of safety features. 
  • KIA Sonet: The KIA Sonet is a compact SUV that has made a strong impact in the competitive subcompact SUV market. It stands out with its modern and dynamic design, featuring bold lines, a muscular stance, and distinctive styling elements. The Sonet offers a range of engine options, including petrol, diesel, and turbocharged petrol engines, catering to different preferences and driving needs. It boasts a feature-rich interior with a touchscreen infotainment system, connected car technology, premium upholstery, and advanced safety features.

How to Calculate your Car EMI using an EMI Calculator?

Here’s how you can calculate your car EMI using the Finnable EMI calculator: 

  • Input the loan amount using the slide bar. Select the total amount you require to purchase your desired car. 
  • Select the loan tenure, that is, the number of months you wish to repay the loan. 
  • Enter the interest rate. Many lenders offer competitive interest rates, which will be provided during the loan application process. Enter the applicable interest rate in the Car EMI calculator. 
  • Click on the ‘Calculate’ button. The EMI calculator will process the information provided and display the monthly EMI amount you will need to pay for your car loan.

How to Apply for a Car Loan

To find out the specific eligibility criteria for buying a car on EMI, visit the lender’s website or physical branch. Follow these steps to apply for a personal loan to purchase a car on EMI: 

Step 1: Sign up and create a borrower’s profile

Step 2: Determine the car and amount of loan you require 

Step 3: Check the lender’s loan eligibility to ensure that you meet all requirements. 

Step 4: Gather and submit all the required documents to the lender.

Key Takeaways

Purchasing a car on EMI presents a viable and convenient option for individuals seeking to own a car without bearing the entire financial burden upfront. With customisable loan amounts, competitive interest rates, and flexible repayment options, good loan providers ensure that your car loan journey is smooth and hassle-free. By availing yourself of their services, you can experience the joy of driving your dream car while managing your finances effectively. 

Frequently Asked Questions (FAQs)

You can buy any car of your choice when you take a car loan. 

The amount of car loan you can avail of depends on a variety of parameters, including your eligibility and car you plan to buy. 

No, most lenders do not require you to submit your driver’s license to get a car loan; however, you may submit it as your identity proof. 

Yes, many loan providers offer unsecured loans so that you can purchase a car on EMI without having to pledge any of your assets.