1. What is the 2 Lakhs Loan Calculator?

This calculator helps you determine the monthly payments (EMI) for a ₹2,00,000 personal loan in India, based on the interest rate and loan term. It shows your total repayment amount and total interest paid over the loan period.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (EMI)
• \( 200000 \) — Principal loan amount (₹2 lakhs)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, including both principal and interest.

3. Importance of Loan Calculation

Details: Understanding your EMI helps in financial planning, comparing loan offers, and ensuring the payments fit within your budget before committing to a loan.

4. Using the Calculator

Tips: Enter the annual interest rate (as offered by your bank), loan term in years (1-30 years). The calculator will show your EMI, total repayment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical interest rate for ₹2 lakh personal loans?
A: Rates vary (10-24% annually) based on credit score, lender, and loan type. Check with multiple banks/NBFCs.

Q2: How does loan term affect my payments?
A: Longer terms reduce EMI but increase total interest paid. Shorter terms mean higher EMI but less interest overall.

Q3: Are there other charges besides interest?
A: Yes, lenders may charge processing fees (0.5-2.5% of loan amount), prepayment penalties, or late fees.

Q4: Can I prepay my loan?
A: Most lenders allow prepayment after 6-12 EMIs, sometimes with a penalty (1-5% of outstanding amount).

Q5: How can I reduce my EMI burden?
A: Improve credit score for better rates, opt for longer tenure, or consider smaller loan amounts.