How is the monthly EMI calculated for my lending?

Modified on Fri, 21 Nov at 11:22 AM

The monthly EMI is calculated based on the number of days the lending is active and the amount lent.

Particulars	Details
Lending Amount (Principal)	₹2,000
Interest Rate	48% p.a.
Tenure	2 months
Disbursal Date	1st October 2025
Closure Date	1st December 2025
No.of.days the amount is lent	61
Facilitation Fee	2% of Principal (i.e., ₹40)
Interest Calculation	(2000 × 48 ÷ 100 × 61 ÷ 360) = 162.66
Total Receivable Amount after fee deduction	2162.66-40=2122.66
Monthly Receivable Amount	₹1,061 per month

Note: The formula used to calculate interest is

Interest Formula: Interest = Principal × Interest Rate × Number of Days ÷ 360

Disbursal Date: The date on which the lent amount is disbursed to the borrower. Please note that the lending amount and the disbursed amount may differ.

Closure Date: The date on which the loan is expected to be fully closed.

Fees (Facilitation Fee / Collection Fee): These fees are charged only on the principal amount that has been repaid.

Please note that the fees are calculated on the principal amount but are deducted gradually as the borrower’s repayments are received.

Disclaimer: Actual returns may vary based on loan performance. The figures provided are for illustrative purposes only and should not be treated as a guarantee.