What is the 20/10/4 rule when taking a car loan ?

1.This is a thumb rule used while buying a car on a loan.

2. 20% of the onroad price of the car should be paid as down payment while booking the vehicle.

3.The EMI should not be more than 10% of the monthly income.

4.The loan tenure should be for a maximum of four years.

5.This rule will vary from individual to individual, according to their monthly income and other liabilities.