Please check with the Bank if you have loan a car before.

2.9% is flat rate per year. just make it simple. dont use EIR.

FD also by 4% per year. so.. is just as simple as 4% vs 2.9%. just that u cannot take out FD anytime to pay car loan.

that's why. best way to do is. using ur flexi house loan. you can take out your money any time. and the rate you can save in housing is at least 4.2%

Bank will use EIR for their back end calculation. that's for them to distribute the payment proportionately.

to customer. is as simple as 2.9% per annual.

That's why, as i said. bank use EIR for back end. coz your contract with them is 5yrs example. your interest for 5years will be 5 x 2.9%. if second year you want to void contract and expect bank only earn you 2.9% for the first year. then that's not the way.

2.9% per year is as what bank already told you. and you need to fulfill the contract maturity.

try to check your own car loan.

if you said u want 5years. so 5x2.9%. is that the total amount you pay??