A car loan calculator is a utility tool that people use to determine the monthly instalments that they have to pay to the lender. It provides a complete overview of every instalment one has to pay throughout the tenure of the loan. There are many benefits of using a car loan calculator such as they are very easy to use and you can get an overview of the instalments sitting at the comfort of your home. You can alter the numbers to determine the cost range to which you can afford a car by looking at the monthly instalments. You can budget and manage your funds in advance by looking at the monthly EMI you will have to pay. The most important benefit of the car loan calculator is that you can compare the interest amount and the difference depending on the tenure of the interest. So, you get an idea about the tenure of the loan you are comfortable with.

A car loan calculator is very easy to use and can be operated by anyone. You have to input the basic data that you are being asked by the calculator and as soon as you enter the data an algorithm runs and you get to know all the details you wanted to know. It requires you to input the Car price and the down payment amount. Next, you have to mention the rate at which the lender is offering you the loan and at last, you have to mention the tenure of the loan according to your comfort. As soon as you enter the details an algorithm runs and all of the vital details are displayed. The details contain the monthly amount that you will be paying the lender and the total payable amount. The details also contain the total repayment and the interest that you will be paying on the principal amount.

The best approach to get the best deal is to compare the annual percentage rate, the interest rate, and the duration rate instead of just comparing the monthly payment. You should look for the lowest instalments but to achieve that don’t increase the loan tenure unreasonably high else you might end up paying a huge amount as the interest on the principal amount. After determining the tenure, rate and monthly instalments look for the fees and other hidden charges that you will have to pay during the loan tenure. Make sure you have read the documents carefully as sometimes they may apply some hidden charges that you might end up paying for no reason. Look throughout the entire contract carefully and agree to the terms if you are fully satisfied with them. These charges might seem insignificant but it makes a huge difference in the total payable sum so make sure there are no hidden charges in the contract.

There can be many types of additional charges while taking a personal loan in the UAE. A late payment fee is charged when you are late in submitting an EMI. The amount is generally pre-decided for a late fee. Next, there is a processing fee which is the cost of administration-related tasks. The cost of this is very low, generally around 1% of the amount. Then comes the early settlement fee that you are liable to pay if you pay the loan before the allotted time. This might sound wrong as you are paying back the loan earlier still have to pay a penalty but the reason for this is that the lender covers the interest lost on the duration of the remaining time. Then comes the disbursement fee which is paid to the lender so he/she considers you a borrower. The next one is the credit insurance fee which you can claim if you fail on paying the loan in the allotted time frame. If you wish to cancel the loan after it is approved then you might have to pay a charge. It depends entirely on the lender. These are some of the common charges that are charged while applying for a personal loan in the UAE.

Let’s first have a look at the required documents to be considered eligible for a car loan in UAE. The documents include Original Emirates Id, Proof of Income, Valid passport/visa, driving license, 3-6 months of bank statement, valuation certificate of the car, insurance policy, and the registration number of the car. These are the documents that you will be required to have before you apply for the loan. Let’s have a look at the process that includes, firstly you have to choose a car for which you will be taking a loan then check if you fit in the eligibility criteria for a loan to that car and if there is a green light then finalize the loan amount, tenure and the EMI. Upload the required documents for the car loan and if all of the documents are verified then the loan is approved and the funds are released.