1. What is EMI Calculation?

EMI (Equated Monthly Installment) calculation determines the fixed monthly payment amount for a home loan from Punjab National Bank. It includes both principal repayment and interest components spread over the loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( N \) — Number of monthly installments (tenure in years × 12)
• \( EMI \) — Equated Monthly Installment (INR)

Explanation: The formula calculates the fixed monthly payment that pays off both principal and interest over the loan term.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand total loan cost, and make informed decisions about loan affordability and tenure.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect EMI amount?
A: EMI depends on principal amount, interest rate, and loan tenure. Higher principal or interest rate increases EMI, while longer tenure reduces it.

Q2: How does PNB calculate interest?
A: PNB uses reducing balance method where interest is calculated on the outstanding principal each month.

Q3: Can I prepay my PNB home loan?
A: Yes, PNB allows prepayment with certain conditions and may charge prepayment penalty in some cases.

Q4: What is the maximum tenure for PNB home loans?
A: Typically up to 30 years, subject to age and other eligibility criteria at loan maturity.

Q5: Are there any hidden charges in PNB home loans?
A: PNB charges processing fees, administrative charges, and possible prepayment penalties. Always check the loan agreement for all charges.