Personal Loan Calculator
EMI and total repayment for unsecured loans.
Inputs
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
Same amortising-loan formula as other EMI calculators, but personal loans carry higher annual rates (often 10–24%) and shorter tenures (typically 12–60 months) because they are unsecured — the bank has no collateral to recover.
Worked example
A ₹5,00,000 personal loan at 14% over 3 years gives an EMI of about ₹17,089 — total repayment near ₹6.15 lakh, with ₹1.15 lakh in interest. At 14% the interest share is noticeable even on a 36-month tenure, which is why personal loans are best kept short.
Where this can give the wrong answer
- Processing fees (often 1–3% of loan amount plus GST) aren't added to P — the effective cost is higher than the rate alone suggests.
- Prepayment penalties on personal loans vary by lender; this calculator assumes no prepayments and a fixed rate for the full tenure.
- Flat-rate quoting is common in marketing ('14% flat') but converts to a higher reducing-balance APR — enter the reducing rate your sanction letter states, not the flat headline.
FAQ
- Personal loans charge higher interest because they're unsecured, and tenures are shorter — both factors push up the monthly instalment. A ₹5 lakh home loan over 20 years might have a lower EMI than the same principal over 3 years at 14%.