A personal loan is an unsecured loan: you don't pledge anything, so lenders charge more than for a home or car loan. Rates range widely, from about 10% for people with strong credit to over 20% for others. This calculator shows your EMI and total interest, so you can compare offers before you sign.
How to use the personal loan EMI calculator
- Enter the loan amount.
- Enter the interest rate offered (the reducing-balance rate, not a flat rate).
- Choose the tenure, usually 1 to 5 years.
Example
A ₹3,00,000 personal loan at 12% for 3 years:
- Monthly EMI = ₹9,964
- Total interest = ₹58,715
- Total payment = ₹3,58,715
How the rate changes the cost
₹3 lakh for 3 years:
| Interest rate | Monthly EMI | Total interest |
|---|---|---|
| 10.5% | ₹9,751 | ₹51,026 |
| 12% | ₹9,964 | ₹58,715 |
| 14% | ₹10,253 | ₹69,118 |
| 16% | ₹10,547 | ₹79,696 |
| 18% | ₹10,846 | ₹90,446 |
| 24% | ₹11,770 | ₹1,23,715 |
The difference between 10.5% and 24% is more than ₹72,000 on the same loan. Your credit score is the biggest factor in the rate you get.
Before you take a personal loan
- Watch out for flat rates. A "10% flat" offer really costs about 18% a year. Convert it with the flat vs reducing rate calculator.
- Count the fees. Processing fees of 1–3% plus GST are common, and some lenders add insurance.
- Check prepayment and foreclosure charges. Fixed-rate personal loans often charge a fee to close early.
- Borrow only what you need, for the shortest tenure you can afford.
- Clearing credit card debt? A personal loan at 12–16% is far cheaper than card interest of 40% or more. See the credit card payoff calculator.
FAQ
What is the EMI for a ₹3 lakh personal loan?
At 12% for 3 years, the EMI is ₹9,964. At 10.5% it is ₹9,751, and at 16% ₹10,547.
How can I get a lower interest rate?
Keep a good credit score (usually 750 or above), have a stable job and income, and compare offers from your own bank and others. Existing customers often get better rates.
Can I prepay a personal loan?
Usually yes, after a few EMIs, but many lenders charge a foreclosure fee on fixed-rate loans. Read the Key Facts Statement before signing.
Is a personal loan better than a credit card EMI?
Often yes, because personal loan rates are usually lower. Compare the full cost of both, including processing fees.