1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates your fixed monthly payment for an auto loan. It considers the principal amount, interest rate, and loan tenure to determine your monthly payment amount.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (ZAR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for compound interest over the loan period, spreading both principal and interest payments evenly across all months.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, compare loan offers, and plan their budgets effectively before taking an auto loan.

4. Using the Calculator

Tips: Enter the principal amount in ZAR, annual interest rate (percentage), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI depends on three main factors - loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q2: How does FNB determine interest rates?
A: FNB considers your credit score, income, loan amount, vehicle type, and current market rates when determining your auto loan interest rate.

Q3: Can I prepay my FNB auto loan?
A: FNB typically allows prepayment, but there may be prepayment penalties or fees. Check your loan agreement for specific terms.

Q4: What's included in the principal amount?
A: The principal is the actual loan amount you borrow to purchase the vehicle, excluding interest and any additional fees or insurance costs.

Q5: How accurate is this calculator?
A: This provides a close estimate, but your actual EMI may vary slightly based on FNB's specific calculation methods and any additional fees.