When it comes to used car loan repayment, the maximum tenure offered by many lending institutions in India is 5 years. However, this may vary with different lenders.
The tenure of your used car loan is one of the most important factors that affect your EMIs. It is therefore essential to know the repayment period before applying for a loan.
If you choose a longer tenure, you will be able to keep your EMIs low. Although a longer repayment period will reduce your EMI, it increases the total cost of your loan by increasing the total interest outlay. However, if you choose a shorter repayment period, you will have to pay a large EMI every month.
Before choosing your repayment term, make sure you find out what EMI you can easily afford to pay every month. You can use the used car loan EMI calculator to identify the loan EMI. This online tool helps you determine the exact principal amount with the interest rate and EMI payable over a specific repayment period. In short, it helps you analyze how much your outgoing EMI will be.
After knowing your outgoing EMI, you can choose a tenure of up to 60 months as per your repayment capacity.