1. What is EMI Calculation?

EMI (Equated Monthly Installment) calculation helps determine the fixed monthly payment amount for a car loan from BDO. It includes both principal and interest components, allowing borrowers to plan their finances effectively.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

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

3. Importance of EMI Calculation

Details: Accurate EMI calculation is crucial for financial planning, budgeting, and ensuring that the loan repayment fits within your monthly expenses without causing financial strain.

4. Using the Calculator

Tips: Enter the principal loan amount in PHP, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI is primarily affected by the loan amount, interest rate, and loan tenure. Higher principal or interest rates increase EMI, while longer tenures reduce it.

Q2: Can I prepay my BDO car loan?
A: Yes, BDO typically allows prepayment, but check for any prepayment penalties or charges in your loan agreement.

Q3: How does down payment affect EMI?
A: A larger down payment reduces the principal amount, which subsequently lowers your monthly EMI payments.

Q4: Are there other charges besides EMI?
A: Yes, car loans may include processing fees, insurance premiums, and other administrative charges that are not included in the EMI calculation.

Q5: Can I change my loan tenure after disbursement?
A: This depends on BDO's policies. Some banks allow tenure changes with revised terms, while others may not permit modifications after disbursement.