Personal Loan EMI Calculator

What decides your personal loan EMI

A personal loan is unsecured: there is no collateral, so the interest rate depends mainly on your income, employer and credit score. The EMI depends on three things: the amount, the rate and the tenure. This calculator uses the reducing-balance method banks use, so you can check any quote in seconds.

Watch the total interest, not just the EMI

Lenders often highlight a small EMI by stretching the tenure. A ₹5 lakh loan at 12% costs about ₹1 lakh in interest over 3 years, but more than ₹1.6 lakh over 5 years. Look at the "Total interest" row before choosing a tenure, and pick the shortest one whose EMI you can comfortably pay.

Compare offers properly

• Interest rate type: make sure the quoted rate is a reducing-balance rate. A "flat rate" looks lower but costs much more.
• Processing fee: often 1–3% plus GST, deducted from the amount you receive.
• Prepayment rules: some lenders charge for early closure or allow it only after a lock-in.
• Lending apps: borrow only from RBI-regulated banks and NBFCs, and check the app's lending partner.

Borrow what you can repay

A common guideline is to keep all your EMIs together under 40–50% of your take-home pay. If you already have a home or car loan, add those EMIs before deciding. To see how part-payments shorten the loan, try the loan prepayment calculator. If you own gold, a gold loan is often cheaper than an unsecured personal loan. For home or car loans, use the EMI calculator.

Your credit score and the rate

A score of 750 or more usually gets the best personal loan rates. Check your score before applying, fix any errors in your credit report, and avoid applying with many lenders at once, since each hard enquiry can lower your score for a while.