Loan EMI & Repayment

The formula for EMI calculation:

EMI=P×r×(1+r)n(1+r)n−1EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n – 1}

Where:

• P = Loan amount (Principal)
• r = Monthly interest rate (Annual Rate / 12 / 100)
• n = Loan tenure (in months)

For a ₹1 lakh personal loan, your EMI will depend on the interest rate and loan duration. It can be around ₹2,174 per month for 5 years or ₹8,838 per month for 1 year.

For a ₹2 lakh personal loan with a 1-year tenure at 10.99% interest, the EMI will be around ₹17,676. The amount may change based on the interest rate and loan duration.

For a ₹5 lakh loan with a 10% interest rate and a 5-year tenure, the EMI will be approximately ₹10,623.52. ​​The amount changes based on the interest rate and loan duration.

The monthly repayment for a ₹5,000 loan depends on the interest rate and loan tenure. For a 1-year loan with a 10% interest rate, the EMI would be around ₹458.

The full form of EMI is Equated Monthly Installment.

To qualify for an EMI, you need to be an Indian citizen, have a steady income, and meet the lender’s eligibility requirements, which usually include a minimum age and credit score.

EMI repayment is the fixed monthly amount a borrower pays to the lender, which includes both the loan principal and the interest, over a set period.

After a loan repayment, the EMI is recalculated based on the remaining principal amount, which is reduced by the repaid amount, and the loan tenure is updated accordingly.

Loan repayment is the process of paying back the money you borrowed, along with interest, in regular payments over a set period.

Yes, most lenders automatically deduct your loan EMI from your bank account on the due date using an auto-debit or NACH (National Automated Clearing House) system.

To calculate loan repayments, use the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N-1], where P is the principal, R is the monthly interest rate, and N is the loan tenure in months. You can also use a free online EMI calculator.

Yes, missing even 1 EMI payment can hurt your CIBIL score, as lenders report missed payments to credit bureaus, lowering your credit score.

“Installment” is a general term for any payment made in parts, while EMI (Equated Monthly Installment) refers to a fixed monthly payment made towards a loan, covering both the principal and interest.

The two main types of EMI repayment methods are EMI in Advance and EMI in Arrears. With EMI in Advance, you pay the EMI before the loan disbursement, while with EMI in Arrears, you pay the EMI after the loan disbursement.

Yes, you can typically cancel an EMI (Equated Monthly Installment) by paying off the full outstanding amount, a process known as “foreclosure” or “pre-closing the loan.” You just need to contact your lender and make a one-time payment for the remaining balance, including any interest or fees.

A loan repayment plan specifies the terms of how you’ll repay the loan, including the total amount, interest rate, loan duration, and a detailed breakdown of each payment throughout the loan period.

To calculate EMI in Excel, use the PMT function with this formula: =PMT(rate, nper, pv), where “rate” is the monthly interest rate, “nper” is the number of payments, and “pv” is the loan amount.

Full payment clears the loan quickly, avoiding interest costs. EMI allows flexibility, spreading payments over time, but may cost more due to interest. Choose based on financial comfort.