1. What is EMI Calculation?

EMI (Equated Monthly Installment) calculation determines the fixed monthly payment amount for a car loan from Punjab National Bank (PNB), consisting of both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( N \) — Number of monthly installments (tenure in years × 12)
• \( EMI \) — Equated Monthly Installment (INR)

Explanation: The formula calculates the fixed monthly payment that pays off the loan principal and interest over the specified tenure.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand repayment obligations, and choose the right loan tenure for PNB car loans.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect EMI amount?
A: EMI depends on principal amount, interest rate, and loan tenure. Higher principal or rate increases EMI, while longer tenure reduces it.

Q2: Does PNB offer flexible EMI options?
A: Yes, PNB provides various tenure options and may offer special interest rates for car loans based on credit profile.

Q3: Are there additional charges in PNB car loans?
A: Processing fees, documentation charges, and insurance may apply. Consult with PNB for complete cost details.

Q4: Can I prepay my PNB car loan?
A: Most banks including PNB allow prepayment, though prepayment charges may apply. Check current PNB policies.

Q5: How does interest rate affect total repayment?
A: Higher interest rates increase both EMI and total interest paid over the loan tenure.