1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a car loan from BOB Financial. It includes both principal and interest components, calculated to ensure the loan is repaid in full over the specified tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula accounts for compound interest and spreads payments equally over the loan period.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps in financial planning, comparing loan offers, and ensuring the installment fits your monthly budget before committing to a car purchase.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate (as offered by BOB Financial), and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my car loan EMI?
A: EMI depends on loan amount, interest rate, and tenure. Higher amount/rate increases EMI, while longer tenure reduces EMI but increases total interest.

Q2: Does BOB Financial offer fixed or floating rates?
A: BOB Financial offers both options. Fixed rates keep EMI constant, while floating rates may change with market conditions.

Q3: Are there any prepayment charges?
A: BOB Financial may charge prepayment penalties for fixed-rate loans. Check current terms as policies may change.

Q4: What's the maximum loan tenure available?
A: Typically 7 years for new cars and 5 years for used cars, but may vary based on loan amount and vehicle age.

Q5: What documents are required for BOB Financial car loan?
A: Generally includes ID proof, address proof, income documents, and vehicle details. Exact requirements may vary.