1. What is EMI Calculation?

EMI (Equated Monthly Installment) calculation helps determine the fixed monthly payment amount for a loan from Prime Bank in Bangladesh. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment required to repay a loan over a specified period, accounting for both principal and interest.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand repayment obligations, and choose the right loan terms that fit their budget.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Prime Bank loans?
A: Interest rates vary by loan type and customer profile. Check with Prime Bank for current rates.

Q2: Can I prepay my loan with Prime Bank?
A: Prepayment policies vary. Contact Prime Bank for specific terms and conditions regarding early repayment.

Q3: Are there any processing fees for Prime Bank loans?
A: Most loans include processing fees. Consult with Prime Bank for detailed fee structure.

Q4: What happens if I miss an EMI payment?
A: Late payments may incur penalties and affect your credit score. Contact Prime Bank immediately if you anticipate payment difficulties.

Q5: Can I change my loan tenure after disbursement?
A: Loan tenure changes typically require bank approval and may involve restructuring fees. Contact Prime Bank for options.