1. What is Personal Loan EMI?

The EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. Personal loans in India from banks like SBI (10.49% p.a.), HDFC (10.50% p.a.), etc., use this calculation method.

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 repayment and interest payment components in each EMI.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan finances, and compare loan offers from different banks.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.5 for 10.5%), and loan term in years. The calculator will show EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What are typical personal loan interest rates in India?
A: Rates vary but typically range from 10.49% p.a. (SBI) to 10.50% p.a. (HDFC) and higher for other lenders.

Q2: How does loan term affect EMI?
A: Longer terms reduce EMI but increase total interest paid. Shorter terms increase EMI but reduce total interest.

Q3: Are there prepayment charges?
A: Many Indian banks charge 2-5% for prepayment or foreclosure; check with your lender.

Q4: What's the maximum personal loan amount?
A: Typically up to ₹25-30 lakhs depending on income, credit score, and lender policies.

Q5: How to reduce EMI burden?
A: Consider increasing loan term, negotiating lower interest rate, or making part prepayments when possible.