Personal Loan EMI
Estimate your monthly EMI for short-term unsecured personal loans.
Personal Loan EMI
Calculation Summary
Breakdown Amortization Schedule
| Year | Total Payment | Principal Repaid | Interest Charges | Ending Balance |
|---|---|---|---|---|
| Year 1 | ₹1,33,467 | ₹77,645 | ₹55,822 | ₹4,22,355 |
| Year 2 | ₹1,33,467 | ₹87,492 | ₹45,974 | ₹3,34,862 |
| Year 3 | ₹1,33,467 | ₹98,589 | ₹34,878 | ₹2,36,274 |
| Year 4 | ₹1,33,467 | ₹1,11,092 | ₹22,374 | ₹1,25,181 |
| Year 5 | ₹1,33,467 | ₹1,25,181 | ₹8,285 | ₹0 |
How Personal Loan EMI Is Calculated
A personal loan EMI uses the same reducing-balance formula as any amortizing loan: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. Because personal loans are unsecured, lenders charge a materially higher rate than home or car loans to offset the lack of collateral.
Worked Example
On a ₹5,00,000 personal loan at 12% annual interest over 5 years (60 months):
- Monthly EMI = ₹11,122
- Total interest paid over the tenure = ₹1,67,333
- Total amount repaid = ₹6,67,333
Personal Loan EMI at 12% for Common Loan Amounts
| Loan Amount | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| ₹2,00,000 | ₹17,770 | ₹6,643 | ₹4,449 |
| ₹5,00,000 | ₹44,424 | ₹16,607 | ₹11,122 |
| ₹10,00,000 | ₹88,849 | ₹33,214 | ₹22,244 |
Monthly EMI figures at a flat 12% annual reducing-balance rate. Use the calculator above for your exact rate and tenure.
Frequently Asked Questions
What interest rate can I expect on a personal loan?
Personal loans are unsecured, so lenders charge a higher rate than secured loans like home or car loans — typically 10.5% to 24% per annum in India, depending on your credit score, income, and the lender. A score above 750 and a stable salaried income usually qualify you for the lower end of that range.
Why is my personal loan EMI so much higher than a home loan EMI for the same amount?
Because personal loans carry both a higher interest rate and a much shorter tenure (usually 1 to 5 years, versus 15 to 30 years for a home loan). Both factors push the EMI up — the shorter the tenure, the more principal you repay each month, and the higher rate adds more interest on top.
Is there a prepayment penalty on a personal loan?
Often, yes. Unlike floating-rate home loans, personal loans are not covered by the RBI’s ban on prepayment penalties for individual borrowers. Most banks and NBFCs charge a foreclosure fee of 2% to 5% of the outstanding balance if you close the loan early, so check your sanction letter before planning to prepay.
Does applying for a personal loan affect my credit score?
Each application triggers a hard inquiry on your credit report, which can cause a small, temporary dip of a few points. Multiple applications within a short period compound this effect and can signal credit-hungry behavior to lenders, so it’s best to compare offers first and apply to only one or two lenders.
What documents are needed for a personal loan?
Most lenders ask for KYC documents (PAN and Aadhaar), the last 3 months of salary slips or ITR for the self-employed, 6 months of bank statements, and a passport-size photo. Pre-approved offers for existing bank customers often need minimal paperwork since the bank already has your income and repayment history on file.