Personal loan EMI calculator
Calculate your personal loan EMI and view the amortization schedule. Pre-filled with typical Indian personal loan defaults.
About personal loan EMI
Personal loans are unsecured — no collateral required — which is why they carry higher rates (10-18%) and shorter tenures (1-5 years) than home or car loans. Common uses include medical emergencies, weddings, debt consolidation, home renovation, and travel. A ₹5 lakh loan at 14% for 3 years costs ₹17,089 per month and ₹1.15 lakh in total interest. Interest rates vary heavily by credit score, employer, and income level.
"The policy will have to remain awake to the possible sources of fragility engendered by the increase in consumption loans and the proliferation of unsecured forms of consumer credit."
How credit score affects personal loan rates
A CIBIL score of 750 or above typically gets the best rates — 10-12%. Scores between 700-749 land around 13-15%. Below 650, most banks reject the application, and those that approve charge 18% or more. Checking your score before applying is free and helps you avoid hard inquiries that further damage it.
Personal loan vs credit card EMI
Personal loan interest (10-18%) is usually much cheaper than credit card revolving interest (36-42% effective annual). If you're carrying a credit card balance, a personal loan to consolidate the debt almost always reduces your total interest cost — run both scenarios in this calculator to compare.
Compare with other loan types
Loan tenure and interest rate affect total cost dramatically. Compare typical EMIs across loan types:
Common Uses
- Home loan affordability check: Before applying for a home loan, calculate the EMI at current rates to confirm it fits within 40–50% of your monthly income.
- Loan comparison: Compare EMIs across banks at different interest rates to identify the lender offering the most affordable monthly outflow.
- Pre-payment planning: Model how a lump-sum part-payment changes the remaining EMI or tenure to plan annual bonus utilisation.
- Car loan budgeting: Determine the on-road price range where the car loan EMI stays within a comfortable monthly budget.
- Personal loan evaluation: Calculate the total interest paid over the loan tenure to evaluate whether the purpose justifies the cost of borrowing.
- Business loan planning: SMEs calculate equipment or working capital loan EMIs to confirm the business cash flow can comfortably service the debt.
- Refinancing analysis: Compare current loan EMI with a refinanced loan at a lower rate to quantify the monthly saving and break-even period.
- Tenure optimisation: Adjust tenure to find the sweet spot between a manageable EMI and minimum total interest paid.
FAQ
What is the interest rate for a personal loan?
Current rates range from 10% to 18% depending on your credit score, employer, and income. Public sector banks are typically cheapest; NBFCs are faster but more expensive.
Can I get a personal loan with a low CIBIL score?
It's difficult below 650. Some NBFCs offer loans to sub-prime borrowers at 20-24% — high enough that you should exhaust every alternative first, including secured loans against gold, FD, or property.
Is personal loan interest tax deductible?
Only in specific cases: used for home renovation (Section 24) or for business (deductible as a business expense). General personal use — weddings, travel, medical — gets no tax benefit.
tool.emi_calc.personal_loan.faq4_q
tool.emi_calc.personal_loan.faq4_a
tool.emi_calc.personal_loan.faq5_q
tool.emi_calc.personal_loan.faq5_a
tool.emi_calc.personal_loan.faq6_q
tool.emi_calc.personal_loan.faq6_a
By the Numbers
- India's total outstanding home loan portfolio crossed ₹27 lakh crore in 2024 (Reserve Bank of India data)
- The average home loan tenure in India is approximately 15–20 years (National Housing Bank)
- Banking norms recommend total EMIs should not exceed 40–50% of monthly gross income (standard RBI guidelines)
- A 1% change in interest rate on a ₹50 lakh, 20-year loan shifts the EMI by approximately ₹3,200