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?
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Answered on Mar 08, 2021
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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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