Personal Loan Calculator

Personal Loan Calculator

Calculate your personal loan EMI with flexible tenure options, processing fees, and purpose-based interest rates. Personal loans are mostly taken to serve multiple purposes like medical emergency, vacation, relocation, wedding, home renovation, etc.

Loan Details

Typical rate: 10.5% - 24%
₹
₹50,000₹50,00,000
%
8%25%
Years
1 Years7 Years
%
Processing fee: ₹12,500
0%5%

Loan Breakdown

Monthly EMI
₹16,727
Principal Amount
₹5,00,000
Total Interest
₹1,02,165
Total Amount Payable
₹6,02,165

Cost Breakdown

Loan Amount₹5,00,000
Total Interest+₹1,02,165
Processing Fee+₹12,500
Total Cost₹6,14,665

Payment Structure

Principal83.0%
₹5,00,000
Interest17.0%
₹1,02,165
36
Total Payments
20.4%
Interest vs Principal

Personal Loan EMI Calculator

Personal loans are mostly taken to serve multiple purposes like medical emergency, vacation, relocation, wedding, home renovation, etc. Since they are an unsecured loan, they have a relatively higher interest rate and a shorter tenure.

You can use the Personal Loan EMI Calculator to assess the loan and EMI amount that you can pay with ease. By entering your loan amount, rate of interest, and loan tenure, you can calculate your EMI.

Personal loans are typically processed faster than secured loans and don't require collateral, making them a popular choice for immediate financial needs. However, the higher interest rates make it important to plan your repayment carefully.

Key Features of Personal Loans

Unsecured Loan

Personal loans are unsecured, meaning no collateral is required, but this results in higher interest rates.

Flexible Purpose

Can be used for various purposes including medical emergencies, travel, wedding, education, and more.

Quick Processing

Personal loans typically have faster approval and disbursement compared to secured loans.

Shorter Tenure

Usually have shorter tenures (1-7 years) compared to home loans, making them more manageable.

Personal Loan Planning Tips

Check your credit score before applying for better interest rates and approval chances.

Compare offers from multiple lenders including banks and NBFCs to get the best deal.

Consider shorter tenure to save on total interest payments.

Read all terms and conditions carefully, including processing fees and prepayment charges.

Personal Loan EMI Formula - Detailed Calculation

Personal loan EMI calculation includes processing fees and varies based on loan purpose and credit profile:

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Personal Loan Variables:

• P = Principal Amount (₹)

• R = Monthly Interest Rate

• N = Loan Tenure in Months

• Processing Fee = 0.5-5% of loan

Rate Variations:

• Medical: 8.5-16% p.a.

• Education: 8.5-16% p.a.

• Wedding: 10-18% p.a.

• Personal: 10.5-24% p.a.

Personal Loan Calculation Steps:

Step 1: Determine loan amount and purpose

Step 2: Convert annual rate to monthly (Rate ÷ 12 ÷ 100)

Step 3: Calculate tenure in months (Years × 12)

Step 4: Apply EMI formula to get monthly payment

Step 5: Add processing fee to total cost

Example: ₹5 Lakh Personal Loan for Medical Emergency:

Given:

• Loan Amount = ₹5,00,000

• Purpose = Medical Emergency

• Interest Rate = 11% p.a.

• Tenure = 3 years

• Processing Fee = 2%

Calculations:

• R = 11% ÷ 12 ÷ 100 = 0.00917

• N = 3 × 12 = 36 months

• EMI = ₹16,370

• Processing Fee = ₹10,000

• Total Interest = ₹89,320

Result: The monthly EMI for the personal loan is ₹16,370

Personal Loan Specific Considerations:

Unsecured: No collateral required

Higher Rates: Due to unsecured nature

Quick Processing: Faster approval

Flexible Purpose: Multiple uses allowed

Shorter Tenure: 1-7 years typically

Credit Dependent: Rate based on credit score

Interest Rate Factors

Personal loan interest rates vary based on several factors:

Credit Score

Higher credit scores (750+) typically get better interest rates and loan terms.

Income Level

Higher income levels often qualify for better rates and larger loan amounts.

Employment History

Stable employment history and current job tenure can positively impact interest rates.

Loan Purpose

Some purposes like medical emergencies or education may qualify for lower rates.

Personal Loan FAQs

Get answers to commonly asked questions about personal loans, EMI calculations, and loan eligibility.

An EMI (Equated Monthly Installment) calculator is a financial tool that helps you calculate the monthly payment amount for a loan. It considers the principal amount, interest rate, and loan tenure to determine your monthly payment obligation.
Our calculators provide highly accurate estimates based on standard financial formulas. However, actual loan terms may vary based on your credit score, lender policies, and market conditions. Always consult with financial institutions for final terms.
These calculators are designed to help you make informed financial decisions. Use them to compare different loan options, plan your investments, and understand the long-term impact of your financial choices.
Your loan EMI is primarily affected by three factors: the principal amount (loan amount), the interest rate, and the loan tenure. A higher principal or interest rate increases EMI, while a longer tenure reduces it but increases total interest paid.
Shorter tenures mean higher EMIs but lower total interest paid. Longer tenures reduce EMI burden but increase total cost. Choose based on your monthly budget and long-term financial goals.
Fixed rates remain constant throughout the loan tenure, providing payment predictability. Floating rates change with market conditions and can result in varying EMIs over time.
Prepayment reduces your outstanding principal, which can significantly reduce total interest paid and loan tenure. Most lenders allow prepayment with minimal or no charges after a certain period.
You can use the EMI calculator for various types of loans including home loans, car loans, personal loans, education loans, business loans, and credit card loans. The calculator works for any loan that follows the standard EMI structure with principal, interest rate, and tenure.
The debt-to-income (DTI) ratio is crucial for loan approval. It measures your monthly debt payments as a percentage of your monthly income. Most lenders prefer a DTI ratio below 40-50%. A higher DTI ratio indicates higher financial risk and may result in loan rejection, higher interest rates, or reduced loan amounts.
An EMI (Equated Monthly Installment) consists of two main components: Principal amount (part of the original loan amount being repaid) and Interest amount (cost of borrowing). The ratio between these components changes over time - initially, more goes toward interest, and as the loan progresses, more goes toward principal repayment.
Missing EMI payments can have serious consequences including late payment charges, penalty interest rates, negative impact on your credit score, loan account becoming NPA (Non-Performing Asset), potential legal action, and in severe cases, asset seizure (for secured loans). It's important to communicate with your lender if you anticipate payment difficulties.