1. What is Personal Loan EMI?

The Personal Loan EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes each month to repay their loan. It includes both principal and interest components, calculated using the standard amortization formula.

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 ÷ 12 ÷ 100)
• \( n \) — Loan term in months
• \( PMT \) — Monthly payment amount (INR)

Example: For ₹1,00,000 loan at 10.85% p.a. for 12 months, the monthly EMI would be ₹8,840.98.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, compare loan offers from different banks (like ICICI, HDFC, SBI), and ensure the EMI fits within their monthly budget.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.85 for 10.85%), and loan term in months (1-60). All values must be valid (principal ≥ 1000, rate > 0, term 1-60).

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for personal loans in India?
A: Rates vary by bank and borrower profile, typically ranging from 10.5% to 24% p.a. (2024 rates).

Q2: How does EMI change with loan tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: What are common personal loan tenures in India?
A: Most banks offer 1-5 years (12-60 months) for personal loans.

Q4: Are there prepayment charges?
A: Many Indian banks charge 2-5% for prepayment, though some offer free prepayment after 6-12 EMIs.

Q5: What factors affect personal loan eligibility?
A: Credit score (CIBIL), income, employment stability, existing debts, and relationship with the bank.