The loan said 10 percent.
You are paying about 17.
17.3
The true reducing balance cost of a car loan sold to you as flat 10 percent. Same rupees, same EMI. The word flat hid seven whole points.
A friend sent me a car loan offer this week, pretty pleased with it. Ten percent flat, lower than the bank, about to sign. I asked him to forget the rate for a second and send me the EMI and the tenure instead. Punched it into a sheet. The rate he was actually paying was not ten. It was almost seventeen.