1. What is the Personal Loan Repayment Calculator?

The Personal Loan Repayment Calculator helps borrowers in India estimate their monthly EMI (Equated Monthly Installment) for personal loans from banks like HDFC, SBI, ICICI, etc. It uses standard loan amortization formulas to provide accurate repayment estimates.

2. How Does the Calculator Work?

The calculator uses the standard loan repayment formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that pays off both principal and interest over time.

3. Importance of Loan Repayment Calculation

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

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.50 for HDFC's typical rate), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical personal loan interest rate in India?
A: Rates vary by bank and borrower profile but typically range from 10.50% to 24% p.a. for major banks like HDFC, SBI, ICICI, etc.

Q2: Are there other charges besides interest?
A: Yes, most banks charge processing fees (0.5-2.5% of loan amount), GST, and possibly prepayment charges.

Q3: How does loan term affect payments?
A: Longer terms reduce monthly EMI but increase total interest paid. Shorter terms have higher EMIs but lower total cost.

Q4: Can I prepay my personal loan?
A: Most banks allow prepayment after 6-12 months, often with a prepayment charge (1-5% of outstanding amount).

Q5: Is the EMI amount fixed for entire tenure?
A: Yes, for fixed-rate loans the EMI remains constant. Floating rate loans may have variable EMIs.