Personal Loan EMI Calculator
Unsecured loan EMI, total interest and all-in cost including processing fee.
Year-wise amortization schedule
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | ₹1,44,079 | ₹60,987 | ₹3,55,921 |
| 2 | ₹1,65,596 | ₹39,470 | ₹1,90,326 |
| 3 | ₹1,90,326 | ₹14,740 | ₹0 |
A personal loan is unsecured borrowing repaid in fixed monthly instalments, and its EMI is calculated on a reducing balance just like any other loan. This calculator adds the piece most tools leave out — the processing fee — so you see the true cost of borrowing rather than only the interest.
Personal loans carry the highest rates of any mainstream retail loan in India, typically 11–24%, because the lender has no collateral to fall back on. A one or two percent processing fee deducted up front adds to that, so comparing offers on EMI alone can be misleading. Use the sliders to see how rate, tenure and fee together move the total cost.
How the personal loan EMI and total cost are calculated
The EMI uses the standard reducing-balance formula: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly rate (annual ÷ 12 ÷ 100) and n the tenure in months. The processing fee is a flat percentage of the sanctioned amount: fee = loan × fee% ÷ 100. Total cost of the loan = total interest + processing fee.
Take ₹5,00,000 at 14% for 3 years. Here r = 0.011667 and n = 36, so the EMI works out to ₹17,089 and you repay ₹6,15,197 in all — ₹1,15,197 of it interest. Add a 2% processing fee of ₹10,000 and the loan costs you ₹1,25,197, which is 25% of the amount you borrowed for just three years of credit.
How to use this calculator
- Set the loan amount you actually need — personal loans have no end-use restriction, but every extra rupee costs 12–24% a year.
- Enter the rate the lender quoted you, not the 'starting from' rate in the advertisement.
- Pick the tenure. A longer tenure lowers the EMI but raises total interest steeply at these rates.
- Move the processing fee slider to whatever the sanction letter states — 1–3% plus GST is the norm.
- Compare the 'total cost of loan' figure across lenders; that single number captures rate, tenure and fee together.
Personal loan rates, fees and eligibility in India
Banks price personal loans on your credit score, employer category and income stability. A score above 750 with a salaried job at a listed company typically gets 11–14%, while scores in the 650–700 band are quoted 18–24% or declined outright. Most lenders also want the total of all your EMIs to stay under 40–50% of net monthly income, which caps how much you can borrow regardless of the rate.
Watch the charges beyond interest. The processing fee of 1–3% plus 18% GST is deducted from the disbursal, so you receive less than the sanctioned amount while paying EMI on the full figure. Prepayment or foreclosure charges of 2–5% of the outstanding principal are common on fixed-rate personal loans, and are often barred entirely for the first 6–12 months. Personal loan interest carries no tax deduction unless the money is demonstrably used to buy or build a house, fund a business, or purchase an asset — keep the paper trail if you plan to claim it.
Frequently asked questions
What is a good personal loan interest rate in India?
Anything at or below about 12% is a strong offer for an unsecured loan. Rates generally run 11–24%, with the lowest going to salaried borrowers who have a credit score above 750 and a stable employer; below 700, expect quotes near the top of that range.
How does the processing fee affect the real cost?
The fee is deducted from the disbursal, so on a ₹5,00,000 loan with a 2% fee you receive ₹4,90,000 but pay EMI on the full ₹5,00,000. That effectively raises the cost of a three-year loan by roughly one percentage point of annual interest.
Should I choose a longer tenure to reduce my EMI?
Only if the EMI would otherwise strain your budget. On ₹5,00,000 at 14%, stretching from 3 to 5 years cuts the EMI from ₹17,089 to ₹11,634 but raises total interest from ₹1,15,197 to ₹1,98,048 — you pay ₹82,851 extra for the breathing room.
Can I prepay or foreclose a personal loan?
Most lenders allow it after 6 to 12 EMIs, charging 2–5% of the outstanding principal as a foreclosure fee. Since personal loan interest is front-loaded, prepaying is usually still worth it in the first half of the tenure even after the charge.
Is personal loan interest tax deductible?
Not by default, because the loan has no specified end use. If you can document that the money went into buying or constructing a house, into a business, or into acquiring an asset, the interest may be claimed under Section 24(b) or as a business expense respectively.
How much personal loan can I get on my salary?
Most lenders cap total EMIs, including any existing loans, at 40–50% of your net monthly income, and sanction 10–24 times your monthly salary depending on profile. A ₹1,00,000 monthly take-home with no other EMIs typically supports a loan of ₹15–20 lakh.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.