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EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay your car loan. It includes both principal repayment and interest charges. The EMI amount depends on the loan amount, interest rate, and loan tenure.

Car loan EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the loan amount (vehicle price minus down payment), r is the monthly interest rate (annual rate / 12 / 100), and n is the total number of monthly installments.

In Fixed EMI, you pay the same amount every month throughout the loan tenure. The interest is calculated on the original loan amount. In Reducing (Normal) EMI, the interest is calculated on the outstanding principal balance, which decreases with each payment. Reducing EMI generally results in lower total interest paid over the loan period.

Several factors influence your car loan interest rate: your credit score, loan tenure, down payment amount, the vehicle type (new or used), your income and employment stability, the lender's policies, and current market conditions. A higher credit score and larger down payment typically result in a lower interest rate.

Yes, a higher down payment is generally beneficial. It reduces your loan amount, which means lower EMIs and less total interest paid. Most lenders recommend a down payment of at least 20% of the vehicle price. A higher down payment also improves your chances of loan approval and may help you get a better interest rate.

An amortization schedule is a detailed table that shows the breakdown of each EMI payment over the entire loan period. It displays how much of each payment goes toward the principal and how much goes toward interest. In the early months, a larger portion goes to interest, while in later months, more goes to principal repayment.