Personal Loan Calculator.
Calculate your exact monthly EMI, total interest, full amortization schedule and compare India's top lenders — in seconds.
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How to Use
Enter Loan Details
Input your desired loan amount, the annual interest rate quoted by your lender, and the repayment tenure in months or years.
Add Processing Fee
Enter the processing fee percentage (typically 0.5–2%) to see the true total cost of your loan, not just the EMI.
View Full Breakdown
Instantly see monthly EMI, total interest, amortization schedule, and principal-vs-interest breakdown chart.
EMI Formula
Standard Reducing Balance Formula
EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]
Principal loan amount (in ₹)
Monthly interest rate = Annual Rate ÷ 12 ÷ 100
Tenure in months
Quick Example: ₹5 Lakh @ 12% for 36 Months
- 01r = 12 ÷ 12 ÷ 100 = 0.01 (monthly rate)
- 02n = 36 months
- 03(1 + 0.01)³⁶ = 1.43077
- 04EMI = 500000 × 0.01 × 1.43077 ÷ (1.43077 − 1)
- 05EMI = 7153.85 ÷ 0.43077 ≈ ₹16,607
Monthly EMI: ₹16,607 | Total Interest: ₹97,852 | Total Repayment: ₹5,97,852
You pay 19.6% extra over the principal — keep this in mind when borrowing.
EMI Reference Table
Common personal loan scenarios in India — use this to quickly estimate your EMI before using the full calculator above.
| Loan Amount | Rate | Tenure | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|---|---|
| ₹1.00 L | 10.5% | 12 mo | ₹8,815 | ₹5,778 | ₹1.06 L |
| ₹2.00 L | 11% | 24 mo | ₹9,322 | ₹23,718 | ₹2.24 L |
| ₹3.00 L | 11.5% | 36 mo | ₹9,893 | ₹56,141 | ₹3.56 L |
| ₹5.00 L | 12% | 36 mo | ₹16,607 | ₹97,858 | ₹5.98 L |
| ₹5.00 L | 12% | 60 mo | ₹11,122 | ₹1.67 L | ₹6.67 L |
| ₹10.00 L | 12.5% | 60 mo | ₹22,498 | ₹3.50 L | ₹13.50 L |
| ₹10.00 L | 13% | 84 mo | ₹18,192 | ₹5.28 L | ₹15.28 L |
| ₹20.00 L | 13.5% | 120 mo | ₹30,455 | ₹16.55 L | ₹36.55 L |
| ₹30.00 L | 14% | 120 mo | ₹46,580 | ₹25.90 L | ₹55.90 L |
| ₹50.00 L | 15% | 180 mo | ₹69,979 | ₹75.96 L | ₹1.26 Cr |
Complete Guide
A personal loan is one of the most versatile financial products available in India today. Unlike home loans or car loans that are tied to a specific asset, a personal loan can be used for virtually any purpose — medical emergencies, home renovation, wedding expenses, travel, debt consolidation, or even starting a small business. In 2026, India's personal loan market has reached unprecedented scale, with disbursements exceeding ₹10 lakh crore annually, driven by digital lending platforms, faster approvals, and competitive interest rates.
Understanding your personal loan EMI before applying is not just prudent — it's essential. The Equated Monthly Instalment determines your monthly cash flow commitment for the entire loan tenure. A miscalculation or oversight can strain your budget significantly. Our personal loan EMI calculator uses the standard reducing balance (diminishing balance) formula mandated by RBI for all scheduled commercial banks, ensuring the results you see match exactly what your bank will charge.
Pro Tip: Always compare the Annual Percentage Rate (APR), not just the interest rate. APR includes processing fees, insurance premiums, and other charges, giving you a true picture of the loan's cost. A loan at 11% with 2% processing fee can cost more than one at 11.5% with 0.5% processing fee for shorter tenures.
How Personal Loan Interest Works in India
All reputable banks and NBFCs in India use the reducing balance method to calculate personal loan interest. Under this method, interest is charged only on the outstanding principal, not the original loan amount. This is significantly cheaper than the flat rate method, which calculates interest on the entire principal throughout the tenure. When comparing loan offers, always confirm whether the rate quoted is on a flat or reducing balance basis — a 10% flat rate is equivalent to approximately 18–19% reducing balance.
In the reducing balance method, your monthly EMI remains constant, but the composition changes with each instalment. In the first month, a larger portion goes toward interest (because the outstanding principal is highest). With each subsequent payment, the interest component decreases and the principal component increases. By the final few EMIs, you're paying almost entirely toward principal. This is why prepayment saves the most interest in the early months of the loan.
Personal Loan Eligibility: What Lenders Actually Check
Loan eligibility in India is determined by a combination of factors that lenders weigh differently. Your CIBIL score is the first filter — most banks require a minimum of 700, with 750+ getting you the best rates. Your score reflects your credit history: payment track record, credit utilization (keep it below 30%), loan mix, credit age, and number of recent inquiries.
Income is the second critical factor. Most lenders use a Fixed Obligation to Income Ratio (FOIR) — your total monthly debt obligations (including the new EMI) should not exceed 40–50% of your net monthly income. If your take-home is ₹80,000, your total EMIs including the new loan should ideally stay below ₹32,000–₹40,000. Lenders also consider employment stability: salaried employees with 2+ years at the same company and government/PSU employees get preferential treatment.
Important: Avoid Multiple Loan Applications
Every loan application triggers a hard inquiry on your CIBIL report, temporarily lowering your score by 3–7 points. Multiple applications within a short period signal desperation to lenders and can result in rejections. Use our calculator to identify the right loan amount and tenure, then approach only 1–2 lenders with the best fit for your profile.
5 Strategies to Minimize Personal Loan Costs
Improve Your CIBIL Score Before Applying
Even a 25-point improvement (say, 725 to 750) can reduce your interest rate by 0.5–1%, saving thousands over the loan tenure. Pay off small outstanding debts, reduce credit card utilization, and wait 3–6 months before applying.
Negotiate — Especially if You're an Existing Customer
Banks offer better rates to customers with salary accounts, fixed deposits, or existing loans with them. Use competing offers as leverage. A simple conversation with your relationship manager can often lower the rate by 0.25–0.5%.
Choose the Right Tenure
Don't blindly pick the longest tenure for the lowest EMI. Calculate the total interest paid across different tenures — the difference can be substantial. Pick the shortest tenure where the EMI stays within 35–40% of your net monthly income.
Make Part-Prepayments in Year 1
The interest component is highest in early months. Making even a small lump-sum prepayment (like your annual bonus) in the first 12–18 months dramatically reduces total interest. Always check prepayment penalty terms first.
Consider Balance Transfer After 12 Months
If rates have fallen since you took your loan, or your credit profile has improved significantly, a balance transfer to a lower-rate lender can save meaningful money. Calculate break-even after accounting for processing fees of the new loan.
Personal Loan vs. Other Credit Options
Before taking a personal loan, it's worth comparing alternatives. Credit card EMI conversions are convenient but often more expensive (effective rates of 14–26% p.a. after fees). Gold loans offer lower rates (7–12%) but require collateral. Loan against securities (shares, mutual funds) offers rates of 9–12% but requires investment holdings. For most middle-class Indians needing ₹1–10 lakh for 12–60 months, a personal loan from a scheduled bank remains the most cost-effective and simplest option — provided your credit profile qualifies for competitive rates.
The personal lending landscape in India has transformed dramatically. Fintechs like MoneyTap, KreditBee, LazyPay, and Navi have democratized access, offering loans within minutes via app-based processes. However, these convenience lenders typically charge 18–36% p.a. — significantly higher than traditional banks. Use them only for small, short-term needs when speed is paramount, not as a default option for larger loans.
How to Use the Amortization Schedule
Our calculator generates a complete amortization schedule — a month-by-month table showing exactly how much of each EMI reduces your outstanding principal versus how much is paid as interest. This schedule is your roadmap for smart loan management. Use it to identify the optimal time to make prepayments (early in the tenure for maximum interest savings), plan your cash flows, and track your loan paydown progress. You can also use it to negotiate with your lender if the schedule they provide doesn't match — discrepancies could indicate hidden charges.
Lender Comparison
All calculations based on ₹5,00,000 loan for 60 months. Rates are indicative — check directly with lender for current offers.
| Lender | Rate (p.a.) | EMI / Mo | Processing Fee | Total Interest | Approval |
|---|---|---|---|---|---|
| HDFC BankBest | 10.5% | ₹10,747 | 1% (₹5,000) | ₹1.45 L | 4 hrs |
| ICICI Bank | 10.75% | ₹10,809 | 1.5% (₹7,500) | ₹1.49 L | 3 hrs |
| Kotak Mahindra | 10.99% | ₹10,869 | 1.25% (₹6,250) | ₹1.52 L | 5 hrs |
| Tata Capital | 10.99% | ₹10,869 | 2% (₹10,000) | ₹1.52 L | 4 hrs |
| SBI Personal | 11% | ₹10,871 | 0.5% (₹2,500) | ₹1.52 L | 24 hrs |
| Axis Bank | 11.25% | ₹10,934 | 1% (₹5,000) | ₹1.56 L | 6 hrs |
| IndusInd Bank | 12% | ₹11,122 | 2.5% (₹12,500) | ₹1.67 L | 12 hrs |
| Bajaj Finserv | 13% | ₹11,377 | 2% (₹10,000) | ₹1.83 L | 2 hrs |
| * Based on ₹5.00 L loan for 60 months. Rates indicative; check lender website for latest offers. | |||||
Interest vs Tenure
Longer tenure dramatically increases total interest. This chart shows why choosing the shortest affordable tenure is always the smartest move.
Interest Cost vs Tenure
₹5.00 L loan at 12% p.a. — longer tenure = more interest
Worked Examples
Example 1: Medical Emergency
Loan: ₹3.00 L | Rate: 11% p.a. | Tenure: 24 months
- 01Monthly rate (r) = 11% ÷ 12 ÷ 100 = 0.9167%
- 02EMI = ₹3.00 L × 0.009167 × (1.009167)^24 ÷ ((1.009167)^24 - 1)
- 03(1.009167)^24 = 1.2434
- 04EMI = 300000 × 0.009167 × 1.2434 ÷ 0.2434 = ₹13,982
Monthly EMI: ₹13,982 | Total Interest: ₹35,576
Total repayment = ₹3.36 L — you pay 11.9% extra as interest.
Example 2: Home Renovation
Loan: ₹7.00 L | Rate: 12.5% p.a. | Tenure: 48 months
- 01Monthly rate (r) = 12.5% ÷ 12 ÷ 100 = 1.0417%
- 02EMI = ₹7.00 L × 0.010417 × (1.010417)^48 ÷ ((1.010417)^48 - 1)
- 03(1.010417)^48 = 1.6436
- 04EMI = ₹18,606
Monthly EMI: ₹18,606 | Total Interest: ₹1.93 L
Over 48 months, total outgo = ₹8.93 L. Consider prepaying after 12–18 months to save significantly.
Example 3: Debt Consolidation
Loan: ₹15.00 L | Rate: 13% p.a. | Tenure: 60 months
- 01Monthly rate (r) = 13% ÷ 12 ÷ 100 = 1.0833%
- 02EMI = ₹15.00 L × 0.010833 × (1.010833)^60 ÷ ((1.010833)^60 - 1)
- 03(1.010833)^60 = 1.9080
- 04EMI = ₹34,130
Monthly EMI: ₹34,130 | Total Interest: ₹5.48 L
Interest burden over 5 years = ₹5.48 L. Negotiating even 0.5% lower rate saves ₹22,962.
Personal Loan FAQ Hub
Everything you need to know about personal loans, EMI, and smart borrowing in India.
1. What is a personal loan EMI?
A personal loan EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your loan. Each EMI comprises two parts: the principal repayment and the interest component. In the early months, most of the EMI goes toward interest; over time, the principal portion increases.
2. What is the formula for calculating personal loan EMI?
EMI = P × r × (1+r)^n / ((1+r)^n − 1). Here, P = Principal, r = Monthly interest rate (Annual rate ÷ 12 ÷ 100), n = Tenure in months. For example, a ₹5 lakh loan at 12% p.a. for 36 months gives EMI ≈ ₹16,607.
3. What is the current personal loan interest rate in India 2026?
As of 2026, personal loan rates range from 10.5% to 24% p.a. SBI starts at 11%, HDFC Bank from 10.5%. The best rates go to salaried employees with CIBIL scores above 750.
4. How does tenure affect my EMI?
Longer tenure reduces monthly EMI but significantly increases total interest. A ₹5L loan at 12% p.a.: 12 months = EMI ₹44,424 (interest ₹33,088) vs. 60 months = EMI ₹11,122 (interest ₹1,67,320).
5. What is the minimum CIBIL score required for a personal loan?
Most banks require CIBIL 700+. A score of 750+ gets you the best interest rates. Below 700 may result in rejection or higher rates. Pay EMIs on time to improve your score.
6. What is a processing fee on a personal loan?
A one-time charge of 0.5–3% of the loan amount, deducted from disbursement. On ₹5 lakh with 1% fee, you pay ₹5,000. Always factor this into total cost.
7. Can I prepay my personal loan?
Yes, but lenders may charge 2–5% prepayment penalty. RBI mandates zero penalty on floating-rate loans. Check foreclosure terms before signing. Prepaying early saves significant interest.
8. What documents are needed for a personal loan?
KYC (Aadhaar, PAN), income proof (salary slips / ITR), bank statements (6 months), address proof, employment certificate, and photos. Requirements vary by lender.
9. How is personal loan eligibility calculated?
Based on: net monthly income (EMI ≤ 40–50% of income), CIBIL score, employer category, age (21–58), existing EMIs, and job stability (1–2 years minimum).
10. What is the difference between flat rate and reducing balance rate?
Flat rate charges interest on the entire principal throughout. Reducing balance charges only on the outstanding amount — much cheaper. A 10% flat rate ≈ 18–19% reducing balance. Always confirm which method applies.
11. Is personal loan interest tax deductible?
Not directly. However, if used for home renovation (Sec 24b) or business purposes, you may claim deductions. Consult a tax advisor for your specific situation.
12. What happens if I miss an EMI?
Late payment penalty (₹500–₹1,000 or 2% of EMI), CIBIL score drop, and potential legal action after repeated defaults. Contact your lender immediately if you face difficulty.
13. How do I reduce my personal loan EMI?
Improve CIBIL score for lower rate, extend tenure, make partial prepayment, do a balance transfer to a lower-rate lender, or refinance when rates fall.
14. What is a balance transfer for personal loan?
Moving your outstanding balance to a new lender at a lower rate. Makes sense when new rate is 1–1.5% lower, tenure remaining > 12 months, and processing fee < interest savings.
15. What is the EMI for a ₹1 lakh personal loan?
At 12% p.a.: 12 months = ₹8,885/mo (total interest ₹6,620), 24 months = ₹4,707/mo (₹12,968 interest), 36 months = ₹3,321/mo (₹19,556 interest), 60 months = ₹2,224/mo (₹33,464 interest).
16. Can I get a personal loan with low salary?
Yes. Many lenders approve loans for ₹15,000–₹25,000/month salary, especially government employees. Amount limited to 10–15x monthly salary. NBFCs and fintechs offer small loans with simpler eligibility.
17. What is an amortization schedule?
A complete table showing principal and interest breakdown of each EMI. Helps you track how much of each payment reduces your balance. Our calculator generates the full schedule automatically.
18. Personal loan vs credit card EMI — which is better?
Personal loans (10.5–18% p.a.) are almost always cheaper than credit card EMIs (12–40% effective). For amounts above ₹50,000 and tenure over 12 months, personal loans save significant interest.
19. What is the maximum personal loan I can get?
Most banks offer up to ₹25–50 lakh for regular customers. Premium customers with high income and excellent credit can get up to ₹1 crore. Amount depends on income (typically 20–27x monthly salary), credit profile, and employer.
20. How long does personal loan approval take?
Digital-first lenders (HDFC, ICICI, Bajaj) approve within 2–4 hours. Traditional banks take 1–3 working days. Pre-approved offers for existing customers are instantaneous. Documents must be in order for quick approval.