Personal Loan EMI Calculator

Quick answer

Personal loan EMI is based on the standard reducing-balance formula. Indian personal loan rates are 11-24% in 2026 — much higher than home or car loans because personal loans are unsecured.

What is Personal Loan?

Personal loans are unsecured — no collateral, just based on your income and credit score. That makes them flexible (use for anything) but expensive (11-24% interest). Best used for genuine emergencies or short-term needs that cannot be covered another way.

Tenure ranges from 12 to 84 months (1-7 years). Loan amounts depend on income and credit score; ₹50K to ₹40L is the typical range for retail customers.

Compare carefully before borrowing: most credit card rates (36-42%) are higher than personal loans, but a 6-month grace period or balance transfer offer can flip that. Always run both options through the calculator.

Standard EMI formula

Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

P: Principal—loan amount approved
r: Monthly rate—annual rate / 12 / 100
n: Months—tenure × 12

Worked example

Loan₹5,00,000

Rate12%

Tenure3 years

EMI ≈ ₹16,608

➜ Monthly EMI: ~₹16,608

How to use this calculator

Three sliders: loan amount, rate, tenure.

Enter loan amount
The amount approved or applied for.
Enter rate
11-13% for prime customers; up to 24% for high-risk profiles.
Set tenure
1-7 years. Shorter tenure → lower interest but higher EMI.

Personal loan scenarios

Medical emergency

Quick disbursement (24-48 hours) makes personal loans useful for unexpected hospital bills.

Wedding expenses

₹5-15 lakh weddings often use personal loans. Calculate affordability against existing budget first.

Home renovation

Smaller renovations not covered by home loan top-ups can be financed via personal loan.

Debt consolidation

Replacing 36% credit card debt with 14% personal loan saves significant interest.

Common mistakes to avoid

Judging affordability by EMI alone

A ₹5 lakh loan at 14% for 5 years has a friendly-looking ₹11,634 EMI but ₹1.98 lakh of total interest — 40% of what you borrowed. Check the total interest figure this calculator shows, not just the monthly number.

Taking the first offer from your salary-account bank

Rates vary 3-6 percentage points between lenders for the same borrower. Pull your CIBIL score first (free once a year), then compare 3-4 offers — a 2% rate difference on ₹5 lakh over 5 years is roughly ₹30,000.

Rolling credit-card dues into repeated personal loans

If this is a debt-consolidation loan, close the cards or cut their limits after consolidating. Consolidating and then re-maxing the cards doubles the debt — the most common personal-loan trap.

Glossary

Unsecured loan: No collateral required. Faster approval but higher rates.
Secured loan: Backed by collateral like property or gold. Lower rates.
Disbursement: Time from approval to money in your account. Personal loans: 24-48 hours typical.
Pre-closure: Repaying the full balance before tenure ends. May incur 2-5% penalty depending on bank.

Frequently asked questions

What interest rate do personal loans charge in India?

Personal loan rates in India typically range from 10.5% to 24% per annum depending on your credit score, income, and lender. Salaried borrowers with CIBIL scores above 750 get the best rates — usually 10.5–14% from major banks.

How is personal loan EMI calculated?

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly rate (annual ÷ 12 ÷ 100), and n is tenure in months. A ₹5 lakh loan at 14% for 5 years costs about ₹11,634/month.

What tenure should I pick for a personal loan?

The shortest tenure you can comfortably afford. Longer tenures lower the EMI but sharply raise total interest — a ₹5 lakh loan at 14% costs ₹1.63 lakh interest over 5 years but only ₹78,000 over 2 years. Most lenders offer 1–5 years.

Can I prepay a personal loan?

Yes, but most banks charge a prepayment penalty of 2–5% of the outstanding amount on fixed-rate personal loans, and many enforce a 6–12 month lock-in before allowing foreclosure. RBI bars prepayment penalties only on floating-rate loans to individuals.

Does a personal loan affect my credit score?

Taking one adds to your credit mix and, if paid on time, builds your score. But the hard enquiry at application dips your score a few points, and missing even one EMI can drop it 50–100 points. Keep total EMIs under 40–50% of net income.

Disclaimer: Results are estimates based on the inputs you provide. They are not professional advice. For consequential decisions — financial, tax, medical, or legal — verify with a qualified professional.