Vehicle mortgage loan refers to a loan obtained from some financial institutions or automobile consumer loan companies using the borrower's or a third party's car or a self-purchased car as collateral. The loan amount is generally 70% of the vehicle's appraised value. Many borrowers have asked, how much is the interest on a car mortgage? Teach you how to calculate loan interest in one minute!

What is the interest rate on a car mortgage?

The interest rate range for car mortgage loans is roughly 0, but most car mortgage loan interest rates are based on monthly interest rates. The bank is in the middle and the financial institutions are more than 1 minute apart. The formula for calculating interest is: Interest = Loan principal * Loan interest rate * Loan term.

Generally speaking, banks will require the age, mileage and vehicle valuation of the loan vehicle, but financial institutions will require the vehicle to be registered in the name of the lender, have a license plate, and be unsecured.

Loans can be used for business purposes such as purchasing raw materials and goods, or for consumer purposes such as car purchases, renovations, travel, and weddings. Bank vehicle mortgage loans are generally not allowed to be used for purposes such as buying a house, studying abroad, investing in financial securities, etc.

General car loan interest rates are slightly higher than bank benchmark interest rates. Ordinary bank car loan interest rates generally increase by 10% based on the bank's benchmark interest rate. The bank's base annual interest rate is one year, and the one-year car loan interest rate is one year. Assume that the borrower applies for a car mortgage of 100,000 yuan and repays it in one year. If the annual interest rate is equal to the principal and interest, the total interest is RMB, the total repayment is RMB, and the monthly repayment is RMB. According to the average principal repayment method, the total interest is RMB, the total repayment is RMB, the first month's repayment is 8843 yuan, and the repayment amount decreases month by month.