Question 1

How is EMI calculated?

Accepted Answer

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 loan tenure in months.

Question 2

What is the EMI on a ₹10 lakh personal loan?

Accepted Answer

At 10.5% p.a. for 3 years, the EMI on a ₹10 lakh personal loan is approximately ₹32,502/month. At 12% for 5 years it is approximately ₹22,244/month. Use LoanIQ's free EMI calculator to get the exact figure for your loan details.

Question 3

What is the EMI for a ₹50 lakh home loan?

Accepted Answer

At 8.5% p.a. for 20 years, the EMI on a ₹50 lakh home loan is approximately ₹43,391/month. At 9% for 20 years it is approximately ₹44,986/month.

Question 4

How can I reduce my EMI?

Accepted Answer

You can reduce your EMI by: (1) extending the loan tenure, (2) negotiating a lower interest rate, (3) making a larger down payment to reduce the principal, or (4) making prepayments on the principal during the loan term.

Plan your monthly payment.