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EMI Formula:
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EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. It's used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
The calculator uses the EMI formula:
Where:
Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan over its term, including both principal and interest components.
Details: Understanding your EMI helps in financial planning, budgeting, and determining loan affordability. It allows borrowers to compare different loan offers and choose the most suitable option.
Tips: Enter the principal amount in BDT, annual interest rate as a percentage, and loan term in years. All values must be positive numbers.
Q1: What factors affect my EMI amount?
A: The EMI amount is primarily determined by three factors: loan amount, interest rate, and loan tenure. Higher loan amounts and interest rates increase EMI, while longer tenures reduce it.
Q2: Can I prepay my BRAC Bank loan?
A: Yes, BRAC Bank typically allows prepayment of loans, though there may be prepayment charges. Check with the bank for specific terms and conditions.
Q3: What is the typical loan tenure offered by BRAC Bank?
A: BRAC Bank offers various loan products with tenures typically ranging from 1 to 20 years, depending on the loan type and purpose.
Q4: Are there any hidden charges in BRAC Bank loans?
A: While BRAC Bank is transparent about charges, it's important to inquire about processing fees, late payment charges, and any other applicable fees before taking a loan.
Q5: How does BRAC Bank determine interest rates?
A: Interest rates depend on various factors including loan type, amount, tenure, borrower's credit profile, and market conditions.