Personal Loan EMI Calculator

EMI (Equated Monthly Installment) is the fixed amount you pay monthly to repay your loan. It includes both principal and interest components.

EMI is calculated using the formula: P × R × (1 + R)^N / [(1 + R)^N - 1], where:
P = Principal loan amount
R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
N = Total number of months

Your EMI amount is influenced by three main factors:
• Loan amount: Higher loan amount means higher EMI
• Interest rate: Higher interest rate increases EMI
• Loan tenure: Longer tenure reduces EMI but increases total interest

You can reduce your EMI by:
• Extending the loan tenure (though this increases total interest)
• Negotiating a lower interest rate
• Making a larger down payment to reduce the loan amount
• Maintaining a good credit score to qualify for better rates

Common requirements include:
• Identity proof (Aadhaar, PAN card)
• Address proof (utility bills, passport)
• Income proof (salary slips, bank statements)
• Employment details
• Credit score report

Yes, most banks allow prepayment of personal loans. However, there might be:
• Prepayment charges (usually 2-5% of outstanding amount)
• Minimum lock-in period before prepayment is allowed
• Minimum prepayment amount requirements

Financial experts recommend keeping your total EMIs within 40-50% of your monthly income. This includes all loans (personal, home, car, etc.). A higher ratio might strain your finances and affect your ability to save.