Idbi Bank Personal Loan

Personal Loan Payment Formula:

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

Monthly Payment (PMT):

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1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment (PMT) required to repay a loan over a specified term. The formula accounts for the principal amount, interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the standard loan payment 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 ÷ 12)
\( n \) — Number of monthly payments
\( PMT \) — Monthly payment amount (INR)

Explanation: The formula calculates the fixed payment needed each month to pay off the loan with interest by the end of the term.

3. About IDBI Bank Personal Loans

Details: IDBI Bank offers personal loans starting at 10.50% interest rate. Loan amounts and terms vary based on creditworthiness and other factors.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.50 for 10.5%), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for IDBI personal loans?
A: Rates start at 10.50% p.a. but may vary based on credit profile and other factors.

Q2: How is the monthly interest rate calculated?
A: The annual rate is divided by 12 (months) to get the monthly rate.

Q3: Does this include processing fees?
A: No, this calculation only includes principal and interest. Additional fees may apply.

Q4: What loan terms are available?
A: IDBI Bank typically offers personal loans with terms from 12 to 60 months.

Q5: Can I prepay my loan?
A: Most personal loans allow prepayment, sometimes with prepayment charges. Check with the bank.