Find the monthly EMI for a car loan, along with the total interest and total amount you will pay.
Uses the standard reducing-balance EMI formula, the same one banks use for car loans.
Car loans typically run 3-8 years at rates a little above home loans.
EMI: P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
Is a car loan's interest rate usually higher than a home loan?
Yes, usually 1-3 percentage points higher. This is because a car loses value over time, so banks see it as weaker security compared to property.
Should I choose a longer tenure for a lower EMI?
A longer loan period gives you a lower EMI, but you pay more total interest. Cars lose value quickly, so many buyers choose a shorter loan period, so they do not end up owing more than the car is worth.