1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month until the loan is fully paid off. It consists of both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment that would completely pay off the loan over its term, accounting for compound interest.

3. About IndusInd Bank Personal Loans

Details: IndusInd Bank offers personal loans with competitive interest rates through Groww platform. Loan amounts, interest rates, and tenures vary based on applicant's credit profile.

4. Using the Calculator

Tips: Enter principal amount in Rs, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: The three main factors are principal amount, interest rate, and loan tenure. Higher principal/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q2: How does prepayment affect my EMI?
A: Prepayment reduces principal, which can either lower your EMI or shorten your loan tenure, depending on the terms of your loan agreement.

Q3: What is the typical interest rate for IndusInd personal loans?
A: Interest rates typically range from 10.49% to 24% p.a. depending on credit score, income, and other factors.

Q4: Are there any processing fees?
A: Yes, IndusInd Bank may charge processing fees up to 3% of the loan amount plus GST.

Q5: Can I get a personal loan without salary slip?
A: Some programs may allow alternative income proof, but typically salary slips or bank statements are required for salaried individuals.