In today's time, car is not a status symbol but has become a necessity for the people. To buy it, salaried people especially take car loan etc., so that they do not have to pay lakhs of rupees in lump sum. But along with repaying the loan, a good amount of interest also has to be paid and in such a situation the car purchased becomes quite expensive. The longer the tenure of the loan, the higher the interest.
Now that the festival of Holi is coming. People make such purchases in view of the various offers during the festive season. If you are also thinking of buying a car on this occasion and also want to take a loan for it, then know here a method by which you can easily calculate the entire cost of the loan including the interest paid to the bank. You just have to do a little work.
If you are planning to buy a car by taking a loan from the bank, then first of all you should visit various banks and find out about cheap loans. Wherever you can get a loan with better interest rates, take the loan only from there. Apart from this, you should get SIP done for at least 75 percent of the EMI amount of whatever loan you are taking. Get this SIP done for the same period for which you are taking the car loan. With this formula, you can easily recover the entire amount that you have paid to the bank as car loan including interest.
Suppose you have taken a loan of Rs 8 lakh from the bank to buy a car worth Rs 12 lakh. You took this loan from a bank for 5 years and you have to repay this loan at 7.9 percent interest. In such a situation, along with the principal amount of Rs 8 lakh, you will have to pay interest of Rs 1,70,971. In this case, you will pay a total of Rs 9,70,971. For this you will have to pay Rs 16,183 every month as monthly EMI.
In such a situation, if you start a SIP of 75 percent of Rs 16,183 i.e. Rs 12,137. The estimated average return in SIP is considered to be around 12 percent. In such a situation, if you invest Rs 12,137 every month in mutual funds through SIP, then according to 12 percent return, you will collect a total of Rs 10,01,137. In this way, you can easily recover your loan along with interest in 5 years.
The financial rule says that if you are going to buy a car, then the price of the car should not be more than half of your annual package. If you are buying a car worth Rs 12 lakh, then your package should be at least Rs 24 lakh. Keeping this in mind, if you buy a car, your household budget will not get disturbed due to it.
