1. What is Personal Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. Personal loans through Groww platform offer competitive rates starting at 10.50% p.a.

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, in decimal)
• \( n \) — Loan term in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed monthly payment that completely pays off the loan over its term, including both principal and interest components.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand the total cost of borrowing, and compare different loan offers.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (minimum 10.50%), and loan term in years. The calculator will show your monthly EMI, total interest, and total payment.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for Groww personal loans?
A: The current minimum interest rate is 10.50% per annum, though actual rates may vary based on credit profile.

Q2: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures mean higher EMIs but lower total interest.

Q3: Are there any prepayment charges?
A: This depends on the lender's policy. Many lenders allow partial or full prepayment after a certain period, sometimes with charges.

Q4: What factors affect personal loan eligibility?
A: Income, credit score, employment history, existing debts, and relationship with the lender are key factors.

Q5: Can I change my EMI amount after taking the loan?
A: Generally no, unless you opt for loan restructuring or refinancing, which may have associated costs.