Frequently Asked Questions
1. What is Personal Loan EMI?
EMI (Equated Monthly Instalment) for a personal loan is the fixed amount you pay every month towards repaying your loan. It includes both the principal and interest components, and the amount remains the same throughout the repayment tenure, making budgeting easy and predictable.
2. How is Personal Loan EMI Calculated?
Personal Loan EMI 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 divided by 12)
- N is the loan tenure in months
Federal Bank’s Personal Loan EMI Calculator simplifies this for you—just enter the loan amount, interest rate, and tenure to get instant results.
3. What are the Factors that affect Personal Loan EMI amount?
Several factors influence your EMI:
- Loan Amount: Higher the loan, higher the EMI.
- Interest Rate: A lower interest rate reduces your EMI.
- Tenure: Longer tenures reduce monthly EMI but may increase overall interest paid.
- Processing Fees & Other Charges: Though not part of EMI, these affect the total repayment cost.
4. Is this calculator only for Federal Bank personal loans?
No. While designed for Federal Bank customers, our EMI calculator can be used to estimate EMIs for any personal loan by adjusting the loan amount, interest rate, and tenure. It’s a helpful tool for comparing options before you decide.
5. What are the Benefits of using the Federal Bank Personal Loan EMI Calculator?
- Quick & Easy: Instantly get accurate EMI estimates.
- Comparison-Friendly: Test different loan amounts, rates, and tenures.
- Financial Planning: Helps you budget your monthly expenses better.
- User-Friendly Interface: Designed for simplicity and convenience.
6. How is the Personal Loan EMI to be paid?
Your EMI will be automatically deducted every month from your linked Federal Bank savings account on the due date. You just need to ensure sufficient balance in the account. Alternatively, standing instructions or post-dated cheques can also be used, based on your convenience.