1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes to a lender at a specified date each calendar month. For FNB personal loans, this includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

• \( P \) — Principal loan amount (ZAR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for compound interest over the loan period, ensuring each payment includes both principal and interest components.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly obligations, compare loan offers, and plan their finances accordingly.

4. Using the Calculator

Tips: Enter the principal amount in ZAR, annual interest rate (without % sign), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI depends on three factors - loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce it.

Q2: How does FNB calculate interest on personal loans?
A: FNB uses reducing balance method where interest is calculated on the outstanding principal each month.

Q3: Can I reduce my EMI payments?
A: You can reduce EMI by either negotiating a lower interest rate or opting for a longer repayment period (though this increases total interest paid).

Q4: Are there any hidden charges in EMI?
A: This calculator shows only principal and interest. FNB may charge processing fees or insurance which aren't included here.

Q5: How accurate is this calculator?
A: This provides a close estimate but actual EMI may vary slightly based on FNB's specific rounding methods and fee structure.