This personal loan EMI calculator shows the monthly instalment, the total interest and the processing fee on an unsecured personal loan. Personal loans cost more than home or car loans, so seeing the full rupee cost before you accept an offer is worth a minute.
It opens with ₹5 lakh at 12% for 4 years. Type the rate and tenure from your offer, and the fee percentage if there is one, and compare offers on total cost.
At a glance
- Example loan₹5 lakh at 12% for 4 years
- EMI₹13,167 a month
- Total interest₹1,32,012
- TenureUsually 1 to 5 years
- SecurityNone, so rates depend heavily on your credit score
- FeeOften 0.5% to 3% plus 18% GST
How to use the personal loan EMI calculator
Type the loan amount, the yearly interest rate and the tenure in years. For a tenure given in months, turn it into years first: 18 months is 1.5 years, 30 months is 2.5 years. Then type the processing fee percentage.
The result shows four things: the EMI, the total interest, the total payable and the fee with GST. Lenders usually take the fee out of the amount they send you, so on a ₹5 lakh loan with a 2% fee you receive about ₹4,88,200 but repay EMIs on the full ₹5 lakh. That makes the true cost higher than the rate suggests.
Tenure options for a ₹5 lakh personal loan
| At 12% | EMI | Total interest |
|---|---|---|
| 3 years | ₹16,607 | ₹97,858 |
| 4 years | ₹13,167 | ₹1,32,012 |
| 5 years | ₹11,122 | ₹1,67,333 |
Each extra year saves a few thousand on the EMI and adds about ₹35,000 of interest. Personal loan rates are high, so the shortest tenure you can handle saves the most. If you expect a bonus, a shorter tenure plus a part payment later can work better than a long loan.
Comparing two personal loan offers
Say Offer A is 12% with no fee and Offer B is 11.5% with a 2% fee, both ₹5 lakh for 4 years. Offer B's EMI is about ₹125 lower, which saves roughly ₹6,000 over the loan. But its fee plus GST is ₹11,800. Offer A is cheaper overall.
Run each offer through the personal loan interest calculator and compare total payable plus fee. Also ask about:
- Foreclosure charges if you close early, and how long you must wait before you can.
- Part payment rules.
- Insurance added to the loan.
- Whether the rate is fixed for the whole tenure.
What decides your personal loan rate
There is no collateral, so the lender prices the loan on how likely you are to repay:
- Credit score: a strong score and clean repayment history get the lowest rates.
- Income and employer: salaried staff at well known employers usually get better terms.
- Existing EMIs: lenders check what share of your pay already goes to EMIs. The personal loan eligibility calculator estimates your limit.
- Relationship: a salary account with the lender sometimes earns a pre approved offer.
Rates for the same person can differ widely between lenders, so it pays to compare.
Personal loan or another option
A personal loan is quick and flexible but costly. Before you take one, check if something cheaper fits:
- A gold loan is secured and often cheaper for short needs.
- A loan or overdraft against your own FD usually costs 1 to 2% above the FD rate. See the overdraft interest calculator.
- A top up on an existing home loan can carry a home loan rate.
- For a purchase, a no cost EMI can work if the extra charges are small.
Avoid using a personal loan to repay a credit card unless the new loan's total cost is clearly lower and you stop using the card.
Closing a personal loan early
Many lenders allow foreclosure after 6 to 12 EMIs, with a charge of a few percent of the outstanding amount plus GST. Personal loans to individuals at floating rates cannot carry prepayment charges under RBI rules, but most personal loans are fixed rate. The loan foreclosure calculator shows the amount needed to close and whether the saving beats the charge.
Borrow only what you need and can repay. If EMIs are already hard to meet, speak to your lender early about restructuring rather than missing payments, which hurts your credit score.
Frequently asked questions
What is the EMI for a ₹5 lakh personal loan?
At 12% it is ₹13,167 for 4 years, ₹16,607 for 3 years and ₹11,122 for 5 years. Use the personal loan calculator with your own rate.
How do I calculate personal loan EMI in months?
Divide the months by 12 and type the result as years. 18 months is 1.5 and 30 months is 2.5. The EMI formula then uses the right number of months.
Is the processing fee added to the EMI?
No. It is usually deducted from the amount paid to you. You repay EMIs on the full loan, so the fee raises your real cost.
Can I get a personal loan with a low credit score?
Some lenders do lend, but at much higher rates and smaller amounts. Improving your score first by paying all dues on time can save a lot.
Is personal loan interest a reducing rate?
Bank and NBFC personal loans are usually on a reducing balance. Some small lenders quote flat rates. Always ask, and convert a flat rate before comparing.
Does a personal loan EMI change during the loan?
Most personal loans have a fixed rate, so the EMI stays the same. If yours is floating, the EMI or tenure can change when the benchmark moves.