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Calculate your personal loan EMI, total interest, and total repayment amount. Compare rates from SBI, HDFC, ICICI, and Axis Bank with yearly amortization schedule.
Typical personal loan range: ₹50,000 to ₹40 Lakhs
Personal loan rates in India typically range from 10.5% to 24% p.a.
Most banks offer personal loans for 1 to 5 years; some extend up to 7 years.
Monthly EMI
₹16,369
Total Interest Payable
₹89,297
Total Payment
₹5,89,297
Effective Interest Rate
₹18
%
A Personal Loan EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay your personal loan. It includes both the principal amount and the interest accrued. Since personal loans are typically unsecured, interest rates are higher than home loans and tenures are shorter, usually ranging from 1 to 5 years (and up to 7 years with some lenders).
Unlike home or car loans, personal loans do not require collateral, which makes them ideal for medical emergencies, weddings, travel, debt consolidation, or home renovation. However, the higher interest rate reflects the increased risk for the lender.
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
Credit Score (CIBIL)
A score above 750 can get you the lowest advertised rates. Scores below 650 may lead to rejection or significantly higher rates.
Monthly Income
Higher stable income improves eligibility and negotiating power for better rates.
Employer Profile
Employees of reputed companies or government sectors often get preferential rates due to perceived income stability.
Existing Relationship
Salary account holders or existing customers may receive relationship discounts on interest rates and processing fees.
Loan Amount & Tenure
Higher loan amounts or longer tenures may sometimes attract slightly different rates depending on the lender's risk assessment.
Debt-to-Income Ratio
If your existing EMIs consume a large portion of your income, lenders may charge a higher rate to compensate for risk.
| Feature | Personal Loan | Credit Card |
|---|---|---|
| Interest Rate | 10.5% - 24% p.a. | 24% - 48% p.a. |
| Loan Amount | ₹50,000 - ₹40 Lakhs | Up to credit limit |
| Tenure | 1 - 7 years | Revolving / EMI plans up to 3 years |
| Processing Fee | 0.5% - 3% | Usually none for purchases |
| Disbursal | 1-7 working days | Instant |
| Impact on Credit Score | Hard inquiry, long-term account | Utilization ratio heavily impacts score |
How is personal loan EMI calculated?
Personal loan EMI is calculated using the standard reducing balance method. The formula is EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is the principal, R is the monthly interest rate, and N is the number of months.
What is the typical interest rate for personal loans in India?
As of 2025, personal loan interest rates in India typically start from around 10.5% for borrowers with excellent credit profiles and can go up to 24% or more depending on the lender and risk assessment.
Can I prepay my personal loan?
Yes, most banks allow prepayment or foreclosure of personal loans. However, some lenders charge a prepayment penalty (usually 2-5% of the outstanding principal) if you prepay within a specified lock-in period.
Does personal loan EMI include GST?
The EMI itself consists of principal and interest only. However, processing fees and other charges may attract GST at 18%. The EMI amount displayed by banks usually does not include GST on fees.
How does my CIBIL score affect personal loan approval?
Your CIBIL score is one of the most critical factors. A score above 750 significantly improves approval chances and helps you secure the lowest rates. Scores below 600 may result in rejection or very high interest rates.
What is the maximum tenure for a personal loan in India?
Most banks and NBFCs offer personal loans with tenures ranging from 12 months to 60 months (5 years). A few lenders may extend this up to 84 months (7 years) for select customers or loan products.
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