1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a vehicle loan. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (ZAR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified term.

3. About Close Brothers Motor Finance

Details: Close Brothers Motor Finance is a leading vehicle finance provider in South Africa, offering flexible financing solutions for new and used cars.

4. Using the Calculator

Tips: Enter the loan amount in ZAR, annual interest rate (as offered by Close Brothers), and loan term in months (typically 12-84 months for vehicle loans).

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does Close Brothers offer?
A: Rates vary based on credit profile, loan term, and vehicle type. Current rates typically range between 9% to 20% APR.

Q2: Are there additional fees with Close Brothers loans?
A: There may be initiation fees, service fees, and insurance costs. These are not included in the EMI calculation.

Q3: Can I pay off my loan early?
A: Close Brothers may allow early settlement, sometimes with an early termination fee. Contact them for specifics.

Q4: How does the interest rate affect my payments?
A: Higher rates increase both your monthly payment and total interest paid. Even a 1% difference can significantly impact total cost.

Q5: What loan terms are available?
A: Close Brothers typically offers terms from 12 to 84 months (7 years), with longer terms reducing monthly payments but increasing total interest.