1. What is the Personal Loan Payment Formula?

The Personal Loan Payment Formula (PMT) calculates the fixed monthly payment required to repay a loan over a specified term, including interest. It's used by Indian Bank and other financial institutions to determine loan repayment amounts.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of monthly payments (loan term in years × 12)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that pays off both principal and interest over time.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and financial planning. It allows you to compare loan offers and choose terms that fit your financial situation.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (without the % sign), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate for Indian Bank personal loans?
A: Rates vary but typically range from 10.25% to 17.00% per annum depending on credit score and other factors.

Q2: What is the maximum loan term available?
A: Indian Bank offers personal loans with terms up to 5-7 years, depending on the loan purpose and amount.

Q3: Are there any prepayment charges?
A: Indian Bank may charge 0-2% for prepayment, depending on the loan terms and timing of prepayment.

Q4: What factors affect my eligibility?
A: Income, credit score, employment history, existing debts, and relationship with the bank all affect eligibility.

Q5: Can I get a personal loan without salary slips?
A: Some banks may offer loans based on bank statements or alternative income proof, but requirements vary.