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