1. What is the EMI Calculation?

The EMI (Equated Monthly Installment) calculation helps determine the fixed monthly payment amount for a loan from Bandhan Bank, including both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

• \( P \) — Principal loan amount (currency)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment required to pay off a loan over the specified tenure at the given interest rate.

3. Importance of EMI Calculation

Details: Accurate EMI calculation is crucial for financial planning, budgeting, and understanding the total cost of borrowing from Bandhan Bank.

4. Using the Calculator

Tips: Enter the principal amount in currency, 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 EMI amount is determined by three main factors: loan amount, interest rate, and loan tenure.

Q2: Can I reduce my EMI amount?
A: Yes, you can reduce your EMI by either opting for a longer tenure or negotiating a lower interest rate with Bandhan Bank.

Q3: How does prepayment affect my EMI?
A: Prepayment reduces your principal amount, which can either reduce your EMI or shorten your loan tenure.

Q4: Are there any hidden charges in EMI calculation?
A: This calculator shows only the principal and interest components. Actual EMI may include processing fees and other charges as per Bandhan Bank's policy.

Q5: Is the interest rate fixed or floating?
A: Bandhan Bank offers both fixed and floating interest rate options. This calculator assumes a fixed interest rate for the entire loan tenure.