Loan Payment Formula:
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This calculator computes monthly payments for loans in India using current interest rates. It helps borrowers understand their repayment obligations for home loans, personal loans, and other credit products.
The calculator uses the standard loan payment formula:
Where:
Explanation: The formula accounts for compound interest over the loan term to calculate fixed monthly payments that fully amortize the loan.
Details: As of today, typical interest rates in India are:
Tips: Enter principal amount in INR, annual interest rate (e.g., 7.50 for 7.5%), and loan term in years. The calculator provides monthly payment, total repayment amount, and total interest paid.
Q1: Does this include processing fees or other charges?
A: No, this calculates only the EMI based on principal and interest. Additional charges may apply.
Q2: How often are EMIs typically paid in India?
A: Equated Monthly Installments (EMIs) are paid monthly, usually through auto-debit from the borrower's account.
Q3: Can I prepay my loan to reduce interest?
A: Most Indian lenders allow prepayment, though some charge prepayment penalties, especially in fixed-rate loans.
Q4: How does loan tenure affect my payments?
A: Longer tenures reduce monthly payments but increase total interest paid. Shorter tenures have higher EMIs but lower total cost.
Q5: Are there tax benefits on home loan EMIs?
A: Yes, under Section 80C (principal) and Section 24 (interest) of Income Tax Act, subject to conditions.