The author has left out one major factor: Whether the loan balance is monthly reducing or annual reducing.
The samples he has shown (eg: 36 EMIs of Rs 12,240 for a 5 lakhs loan with 1 lakhs down payment) are actually annual reducing balance. The same loan with monthly reducing balance will have an EMI of Rs 11,988 only. So this factor is important.
The author has missed one catch in the multile EMI advance scheme. As he has explained, the scheme works this way, for 5 lakhs loan the EMI (15,300) is calculated for the interest rate for 3 years. Then you are requied to pay 6 EMIs in advance (Rs 91800).
So effectively the loan is for an amount of Rs 408200 for a tenure of 2.5 years whereas the EMI is calculated for 5 lakhs for a tenure of 3 years. This will make the effective interest rate very high (almost 7% instead of 5%)
In other words, if you opt for a down payment of Rs 91800 (ie loan amount is Rs 408200) and a tenure of 2.5 years, the EMI would be only Rs 14,811 instead of 15,300. So never fall for a multiple advance EMI payment.
