1. What is Car Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to the lender each month for their car loan. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly EMI payment
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan over its term.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment and plan their budget accordingly before taking a car loan.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate in percentage, and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is BOB Bank's current car loan interest rate?
A: Interest rates vary based on credit profile and loan terms. Check BOB Bank's official website or contact them for current rates.

Q2: Are there any additional charges besides EMI?
A: There may be processing fees, insurance, and other charges. Consult with BOB Bank for complete details.

Q3: Can I prepay my car loan?
A: Most banks including BOB allow prepayment, sometimes with charges. Check your loan agreement for details.

Q4: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q5: Is EMI fixed for the entire loan period?
A: For fixed-rate loans, EMI remains constant. For floating-rate loans, EMI may change with interest rate fluctuations.