1. What is the Personal Loan Payment Formula?

The Personal Loan Payment Formula calculates the fixed monthly payment (PMT) required to repay a loan over a specified term. This formula is used by L&T Finance and other lenders to determine monthly installment amounts.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: The formula accounts for both principal repayment and interest charges, with payments being equal each month (amortizing loan).

3. Importance of Loan Payment Calculation

Details: Accurate payment calculation helps borrowers understand their repayment obligations, compare loan offers, and plan their finances accordingly.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for L&T personal loans?
A: Interest rates vary based on credit profile but typically range from 10% to 24% per annum.

Q2: Are there any processing fees for L&T personal loans?
A: Yes, L&T Finance typically charges a processing fee of 1-2% of the loan amount plus GST.

Q3: What is the maximum loan term available?
A: L&T Finance usually offers personal loans with terms ranging from 12 to 60 months.

Q4: Does this calculator include insurance or other charges?
A: No, this calculates only the principal and interest components. Actual payments may include additional charges.

Q5: Can I prepay my L&T personal loan?
A: Yes, but prepayment charges may apply depending on the loan terms and timing of prepayment.