Is EMI calculated differently for commercial car loans vs. personal car loans?

I want to finance a car for my small business. Will the EMI be calculated differently for this car vs. a personal-use vehicle?

Answer provided by
Eric Schad
Answered on Mar 08, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
The EMI, or equated monthly installment, is the fixed payment you make each month on your car. To determine EMI, you simply add the monthly interest and the monthly principal payment. The amount of principal and interest will vary during the life of the loan, but the overall monthly payment will remain the same.
As far as commercial car loans and personal car loans go, the EMI is calculated in the same way with the vehicle acting as collateral.

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