Q.A vehicle loan of ₹3,00,000 is taken at 18% per annum, to be repaid in 12 monthly instalments. Find the EMI.

Vehicle loans commonly carry a higher rate than home loans; convert the higher annual rate to its monthly equivalent and apply the same EMI formula.

$(1.015)^{12}=1.195618$. …

Here $P=₹3{,}00{,}000$, annual rate $18\%$, tenure $n=12$ months.

Step 1 — Convert the annual rate to a monthly rate.

Step 2 — Compute $(1+r)^n$.

Step 3 — Apply the EMI formula. …

Because the personal loan and home loan Worked Examples above both used $r=0.01$ (a $12\%$ annual rate), a student may carry that same monthly rate over here out of habit — always re-read the specific loan's own quo …