EMI Calculator

EMI (Equated Monthly Installment) is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n – 1), where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly installments. For example, a ₹10 lakh loan at 12% p.a. for 5 years (60 months) gives a monthly EMI of approximately ₹22,244. The initial EMIs have a larger interest component, which gradually decreases as principal repayment increases.

Loan eligibility depends on several factors: (1) Income — higher income allows larger EMIs; banks typically cap EMI at 40–50% of net monthly income. (2) Credit score — a CIBIL score above 750 improves approval chances and may get you lower rates. (3) Existing obligations — current EMIs, credit card dues reduce your available income for new loans. (4) Employment stability — salaried individuals with 2+ years in the same company or self-employed with 3+ years ITR history are preferred. (5) Age — younger borrowers can get longer tenures.

Yes, most loans allow prepayment. For floating-rate loans, RBI has mandated that banks cannot charge prepayment penalties. For fixed-rate loans, banks may charge 2–5% of the outstanding principal as a foreclosure fee. Partial prepayments reduce either your EMI or tenure (you can choose). Even small additional payments can significantly reduce total interest — for instance, paying one extra EMI per year on a 20-year home loan can reduce the tenure by 3–4 years.

For a business loan, you typically need: (1) Identity proof — PAN card, Aadhaar. (2) Address proof — utility bills, rent agreement. (3) Business proof — GST registration, Udyam certificate, trade license. (4) Financial documents — last 2–3 years ITR with computation, audited balance sheets, profit & loss statements. (5) Bank statements — last 12 months of primary business account. (6) KYC of partners/directors. We help with complete documentation — from organizing papers to liaising with the bank.