1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. For Ford Motor Credit Philippines, this includes both principal and interest components of your auto loan.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (PHP)
• \( r \) — 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. Importance of EMI Calculation

Details: Calculating your EMI helps in financial planning, understanding your monthly obligations, and comparing different loan offers from Ford Motor Credit Philippines.

4. Using the Calculator

Tips: Enter the loan amount in PHP, annual interest rate (as offered by Ford Motor Credit), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does Ford Motor Credit Philippines offer?
A: Rates vary based on credit score, loan term, and vehicle model. Typically ranges from 6% to 15% annually.

Q2: What is the maximum loan term available?
A: Ford Motor Credit Philippines usually offers terms from 12 to 60 months, depending on the vehicle.

Q3: Are there any processing fees?
A: Yes, there may be processing fees (typically 1-3% of loan amount) and other charges. Consult with Ford Motor Credit for exact fees.

Q4: Can I prepay my loan?
A: Prepayment options and penalties vary. Check your loan agreement for prepayment terms.

Q5: How does this differ from bank auto loans?
A: Ford Motor Credit may offer special promotions and rates for Ford vehicles that banks don't provide.