EMI Calculator For PMEGP Loan

PMEGP EMI Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (EMI):

Total Payment:

Total Interest:

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1. What is PMEGP Loan EMI?

The PMEGP (Prime Minister's Employment Generation Programme) loan EMI is the fixed monthly payment a borrower makes to repay their loan. It includes both principal and interest components, calculated using standard amortization formulas.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (INR)
\( r \) — Monthly interest rate (annual rate divided by 12 and converted to decimal)
\( n \) — Loan tenure in months
\( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed payment amount that will completely pay off the loan over its term, including interest.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, assessing loan affordability, and comparing different loan options under the PMEGP scheme.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan tenure in years. The calculator will show monthly EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is special about PMEGP loan interest rates?
A: PMEGP loans often have subsidized interest rates from the government to promote entrepreneurship, making them more affordable than regular loans.

Q2: Are there any processing fees for PMEGP loans?
A: Typically, PMEGP loans have minimal or no processing fees, but check with the implementing agency for exact details.

Q3: What is the maximum loan amount under PMEGP?
A: The maximum project cost coverage varies (usually up to ₹25 lakh for manufacturing and ₹10 lakh for service sector), with margin money subsidy from the government.

Q4: Can I prepay my PMEGP loan?
A: Prepayment terms depend on the lending bank's policies, though government-subsidized loans may have specific conditions.

Q5: How does the subsidy affect my EMI?
A: The subsidy reduces the effective interest rate you pay, resulting in lower EMIs compared to regular loans at market rates.