1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For car loans, EMI payments include both principal and interest components.

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 calculates the fixed monthly payment that would pay off the loan over its term with interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly obligations and plan their finances accordingly. It's essential for budgeting and loan comparison.

4. Using the Calculator

Tips: Enter the principal amount in ZAR, annual interest rate in percentage, and loan tenure in months. 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 loan term. Higher amounts, rates, or shorter terms increase EMI.

Q2: How does FNB determine interest rates?
A: Rates depend on credit score, loan amount, tenure, and current market conditions. Better credit scores get lower rates.

Q3: Can I prepay my FNB car loan?
A: Yes, but prepayment penalties may apply. Check your loan agreement for details.

Q4: Are there other car loan charges?
A: Additional costs may include initiation fees, monthly service fees, and credit insurance.

Q5: How accurate is this calculator?
A: This provides estimates. Actual EMI may vary based on FNB's final approval terms and any additional fees.