1. What is the EMI Calculation Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount made by a borrower to a lender at a specified date each calendar month. This calculator uses the standard EMI formula used by Groww for house loans.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

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

Explanation: The formula accounts for both principal repayment and interest payment components in each EMI.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment and plan their budget accordingly when taking a house loan.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Groww Malaysia?
A: This calculator uses the standard EMI formula used by Groww, but is not specific to Malaysia.

Q2: What's included in the EMI payment?
A: EMI includes both principal repayment and interest payment components.

Q3: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q4: Are there other charges not included in EMI?
A: Yes, processing fees, insurance, and other charges may apply but aren't included in this calculation.

Q5: Can I prepay my loan?
A: Most lenders allow prepayment, which can reduce total interest, but may have prepayment charges.