This topic describes the tool which enables customers to gain an estimate of their regular loan repayments (EMIs).

The EMI Calculator, available only to existing customers of the bank. Customers can also view the loan repayment schedule.

If the loan product, for which the customer is accessing the EMI calculator, supports preferential interest rates, then on entering the loan amount, tenure and on selecting a preferred interest rate type (if applicable), the customer can view the relationship benefit percentage along with the break up of the effective interest rate that will be applicable on the loan, if the customer decides to apply for it. This interest rate will be lower than the regular interest rate applicable on the loan. A preferential interest rate is generally available to customers who have existing accounts, investments, or a strong history with the bank and is offered as a reward for the customer’s engagement with the bank. This exclusive benefit ensures that the financial trust in the bank translates into more affordable borrowing options.

If the bank customer is not eligible for the special interest rate, then the rate of interest provided to them will not be preferential and the regular interest rates will apply.

The Relationship-Based Pricing feature is configurable for specific Personal Loan products from the backend.

This feature is only supported with Oracle Baking Retail Lending (OBRL) as the Loan Host System.

Figure 1-3 EMI Calculator

Description of "Figure 1-3 EMI Calculator"

Note:

The fields which are marked as Required are mandatory.

For more information on fields, refer to the field description table.

Table 1-3 EMI Calculator - Field Description

Field Name	Description
Loan Amount	The amount of loan that the customer wishes to avail.
Loan Tenure	The tenure of the loan.
Interest Rate Type	The type of interest rate to be applied on the loan i.e. fixed or floating. Note: In case only one type of interest rate is defined for the loan product, then this field will be a read only field and the interest rate type applicable will be displayed against it.

1. In the Loan Amount field, enter the loan amount that is to be borrowed.
2. In the Loan Tenure lists and field, define the term of the loan in years, months and/or days.
3. From the Interest Rate Type field, select the type of interest rate you want to be applied on the loan.
4. Click Calculate to view the Effective Interest Rate.
5. Click Show Interest Breakup to view the interest breakup.
   A drawer displaying the loan interest breakup will be displayed.

   Figure 1-4 EMI Calculator- Interest Breakup

   
   

   
   Description of "Figure 1-4 EMI Calculator- Interest Breakup"

   
   
6. Click View Repayment Schedule to check the detailed EMI schedule and installment breakdown.

   Figure 1-5 EMI Calculator- Repayment Schedule

   
   

   
   Description of "Figure 1-5 EMI Calculator- Repayment Schedule"

   
   
7. Click on Apply Now to proceed with the loan application process.

   The kickoff page for the loan product application is displayed. Details of the loan application are covered in later sections.

   This seamless process ensures that eligible customers automatically receive better loan terms based on their banking relationship, making borrowing more affordable and convenient.