Question 1

How is EMI calculated?

Accepted Answer

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the principal, R is the monthly interest rate (annual ÷ 12 ÷ 100), and N is the tenure in months. The calculator above does this instantly for any loan type.

Question 2

Which type of loan has the lowest interest rate in India?

Accepted Answer

Loan against FD is the cheapest (~7–9%), followed by home loan (~8.4–9.5%), gold loan (~8.75–11%), car loan (~8.7–10.5%), personal loan (~10.5–24%), and credit card loan (~12–18%).

Question 3

How do I find the best bank for my loan?

Accepted Answer

Use the comparison and recommendations above. The Smart EMI Finder ranks lenders by effective rate, total cost, and approval speed for your specific income, tenure, and amount — no affiliate bias.

Question 4

What is the difference between fixed and floating interest rates?

Accepted Answer

Fixed rates stay constant for the entire tenure; floating rates reset with the RBI Repo Rate. RBI rules forbid prepayment penalties on floating-rate retail loans, which is why most Indian borrowers prefer floating.

Question 5

Can I prepay my loan to save interest?

Accepted Answer

Yes — on floating-rate retail loans, you can prepay any amount any time with zero penalty. Use the Prepayment Planning section above to see how much interest you'd save by paying extra each month or making a one-time lump-sum payment.

Question 6

How often are the bank rates updated on FundGenie?

Accepted Answer

Rates are reviewed and updated regularly from official bank pages. Each lender card shows the 'last updated' date so you can confirm freshness before applying.

Question 7

Are the recommendations affiliate-driven?

Accepted Answer

No. The Smart EMI Finder uses a deterministic scoring formula (60% effective rate, 25% total cost, 15% approval speed) filtered by eligibility. We do not earn commissions from any lender.

Question 8

What is the FOIR rule for loan eligibility?

Accepted Answer

Fixed Obligation to Income Ratio. Banks typically cap your total EMIs (existing + new) at 40–50% of your net monthly income. Higher CIBIL scores can push that ceiling closer to 60% at some private banks.

Smart EMI Finder & Loan Calculator India 1970

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