EMI is calculated using the formula: EMI = P x R x (1+R)^N / [(1+R)^N - 1], where P is the principal loan amount, R is the monthly interest rate (annual rate / 12 / 100), and N is the tenure in months. Most banks provide an online EMI calculator for quick estimates.

A fixed interest rate remains constant throughout the loan tenure, giving predictable EMIs. A floating rate is linked to the RBI repo rate or the bank's MCLR/EBLR and can change periodically — it may go up or down. Floating rates are usually 1-2% lower than fixed rates initially.

Missing an EMI results in a late payment fee (typically 2-3% of the EMI amount), a negative impact on your CIBIL score, and potential penal interest charges. Consecutive missed EMIs can lead to the loan being classified as NPA and legal recovery action by the lender.

Yes, most loans allow prepayment. For floating-rate loans, RBI has mandated zero prepayment/foreclosure charges for individual borrowers. Fixed-rate loans may attract prepayment charges of 2-5% of the outstanding principal. Check your loan agreement for specific terms.

Typically required: PAN Card, Aadhaar Card, last 3-6 months' salary slips, bank statements for 6 months, Form 16 or ITR for the last 2 years, passport-size photographs, and address proof. Self-employed applicants additionally need business proof and audited financials.

A CIBIL score of 750+ is considered good and increases approval chances with competitive interest rates. Scores between 650-749 may get approval but at higher rates. Below 650, most banks will reject the application. You can improve your score by paying bills on time, keeping credit utilisation low, and maintaining a healthy credit mix.