Personal Loan Calculator
Calculate personal loan EMI, total interest, and repayment schedule instantly.
💳 What is a Personal Loan?
A personal loan is an unsecured loan offered by banks and NBFCs (Non-Banking Financial Companies) for any personal purpose - medical emergencies, weddings, travel, home renovation, debt consolidation, or any other need. Unlike a home loan or car loan, a personal loan is not backed by any collateral, which is why interest rates are higher - typically between 10% and 36% per annum in India.
Personal loan repayment happens through equal monthly instalments (EMIs) over a fixed tenure, usually 1 to 7 years. Each EMI comprises a principal component and an interest component. In the early months, most of the EMI goes toward interest; in later months, more goes toward the principal (this is how reducing-balance interest works).
Use this calculator to understand exactly how much you will pay monthly and in total, and to compare different loan scenarios before applying.
📐 Personal Loan EMI Formula
EMI = [P × R × (1+R)N] / [(1+R)N − 1]
P = Principal loan amount (₹)
R = Monthly interest rate = Annual rate ÷ 12 ÷ 100
N = Tenure in months = Years × 12
Total Interest = (EMI × N) − P. This is the total cost of borrowing. Total Payable = P + Total Interest.
📖 How to Use This Calculator
Steps
1
Select a purpose tab to auto-fill typical values for that loan type.
2
Adjust the sliders to match your actual loan amount, rate, and tenure.
3
Click Calculate EMI to see monthly payment, total interest, and a pie chart breakdown.
💡 Example Calculations
Example 1 - Medical Emergency (₹2L at 16% for 2 years)
1
R = 16/12/100 = 0.01333 | N = 24 months
2
EMI = [2,00,000 × 0.01333 × (1.01333)24] / [(1.01333)24 − 1]
Monthly EMI = ₹9,730 | Total Interest = ₹33,520 | Total = ₹2,33,520
Try this example →Example 2 - Wedding Loan (₹5L at 14% for 3 years)
1
R = 14/12/100 = 0.01167 | N = 36 months
Monthly EMI = ₹17,088 | Total Interest = ₹1,15,168 | Total = ₹6,15,168
Try this example →❓ Frequently Asked Questions
What credit score is needed for a personal loan?
Most lenders in India require a minimum CIBIL score of 700–750 for personal loan approval. A score above 750 generally qualifies for the best interest rates. Scores between 650–700 may still get approval but at higher rates. Below 650, approval is difficult and interest rates are very high. You can check your CIBIL score free once a year at cibil.com.
What credit score do I need for a personal loan?
Most banks require a minimum CIBIL score of 700-750 for personal loan approval. Scores above 750 typically qualify for the lowest rates (10.5-12%). Scores between 650-700 may still get approval at higher rates (16-22%). Below 650, approval is difficult - focus on improving your score before applying.
What is the processing fee on a personal loan?
Processing fees typically range from 1-3% of the loan amount. On a Rs 5 lakh loan at 2%, you pay Rs 10,000 upfront. This is non-refundable even if you repay early. Always factor processing fees into the true cost. The effective interest rate (considering fees) is always higher than the stated rate.
How do I reduce my personal loan interest?
Three strategies: (1) Improve your credit score before applying - even 30 points can reduce rates by 1-2%. (2) Apply with a co-applicant with good credit. (3) Negotiate - if you have a salary account or long relationship with a bank, ask for rate concessions. Also compare offers from NBFCs, which sometimes offer lower rates than large banks.
How does a personal loan differ from a credit card?
A personal loan gives you a lump sum upfront with a fixed interest rate and repayment schedule. Interest accrues from day one on the full amount. A credit card gives you a revolving credit line with 0% interest if paid in full monthly - but very high rates (36–48% p.a.) if you revolve a balance. For larger expenses you plan to repay over 1–3 years, a personal loan is usually cheaper. For short-term float, a credit card with full monthly repayment is better.
Should I take a longer or shorter tenure for a personal loan?
Shorter tenure = higher EMI but significantly lower total interest paid. Longer tenure = lower EMI but much more interest over the life of the loan. For example, ₹3 lakh at 14% for 2 years costs about ₹23,000 in interest total, while the same loan for 5 years costs about ₹1.21 lakh - over 5× more. Always opt for the shortest tenure your budget allows.
What are processing fees and how do they affect the cost?
Most lenders charge a processing fee of 1%–3% of the loan amount, deducted upfront from the disbursed amount. This effectively increases your cost of borrowing. For example, a ₹5 lakh loan with 2% processing fee means you receive ₹4.9 lakh but pay EMI on the full ₹5 lakh. Always factor processing fees into your total cost comparison when shopping for a personal loan.
How much personal loan can I get on a ₹40,000 salary?
Lenders typically approve personal loans up to 10–20 times your net monthly salary, subject to existing EMI obligations. On ₹40,000 salary with no existing EMIs, you can expect loan approval of ₹4–7 lakhs. Your total EMI obligations including the new loan should not exceed 40–50% of net income. On ₹40K salary, that means a maximum new EMI of ₹16,000–₹20,000. At 14% for 3 years, a ₹5L loan has an EMI of approximately ₹17,100.
Personal loan vs credit card - which is cheaper for a large expense?
For large expenses above ₹1 lakh, a personal loan is almost always cheaper than revolving credit card debt. Credit cards charge 36–42% per annum on unpaid balances. Personal loans cost 10–24%. For ₹2L over 12 months: personal loan at 14% = total interest ≈ ₹15,600; credit card revolving balance at 36% = total interest ≈ ₹40,000+. Use personal loans for planned large expenses; use credit cards only if you will pay the full outstanding balance before the due date each month.
What is a good interest rate for a personal loan?
Personal loan rates in India range from 10% to 24% depending on the lender and your credit profile. Rates below 12% are excellent; 12-16% is average; above 18% is high. Always compare the effective annual rate (EAR) rather than just the nominal rate, especially for loans with processing fees.
How does a personal loan affect my credit score?
Applying for a personal loan triggers a hard inquiry, temporarily lowering your score by 5-10 points. However, making timely payments builds credit history positively over time. Maintaining a low credit utilization ratio and avoiding multiple loan applications simultaneously helps protect your score.