1. What is Personal Loan EMI?

The Personal Loan EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to the lender each month. It includes both principal and interest components, calculated to pay off the loan over the specified term.

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)

Note: Groww app offers personal loans with rates starting at 10.50% p.a. for HDFC.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly obligations, plan finances, and choose loan terms that fit their budget.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.50 for 10.5%), 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 Groww personal loans?
A: Rates start at 10.50% p.a. for HDFC through the Groww app.

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

Q3: Are there any prepayment charges?
A: This depends on the lender's policy. Check with your specific lender for prepayment terms.

Q4: What factors affect personal loan approval?
A: Credit score, income, employment history, and existing debts are key factors lenders consider.

Q5: Can I change my loan term after approval?
A: Typically, loan terms are fixed at disbursement. Some lenders may allow restructuring with fees.