1. What is the EMI Calculation Formula?

The EMI (Equated Monthly Installment) calculation formula helps determine the fixed payment amount a borrower makes each month to repay a loan. Paisabazaar offers personal loans with interest rates starting at 10.50% p.a. from HDFC.

2. How Does the Calculator Work?

The calculator uses the standard 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 and interest components of the loan, with interest being front-loaded in the initial payments.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, compare loan offers, and plan their finances accordingly before taking a loan.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (starting at 10.50% for HDFC through Paisabazaar), and loan term in months (1-60). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for Paisabazaar personal loans?
A: Rates start at 10.50% p.a. for HDFC Bank customers through Paisabazaar platform.

Q2: What is the maximum loan tenure available?
A: Most lenders offer personal loans for up to 5 years (60 months) through Paisabazaar.

Q3: Does the EMI include all charges?
A: EMI includes principal and interest. Processing fees (0.5-2.5%) are charged separately upfront.

Q4: Can I prepay my personal loan?
A: Most lenders allow prepayment after 6-12 months, often with 2-5% prepayment charges.

Q5: How does credit score affect my interest rate?
A: Higher credit scores (750+) typically qualify for lower interest rates on Paisabazaar.