Personal Loan EMI Calculator — Know Your Monthly Payments — India 2026
Calculate personal loan EMI for any amount from Rs 50000 to Rs 40 lakh. Compare interest rates across HDFC ICICI SBI Bajaj Finserv and other lenders.
Personal loans are unsecured loans meaning you do not need to pledge any asset as collateral. This makes them convenient for emergencies weddings home renovation medical expenses or debt consolidation. However personal loan interest rates are higher than secured loans typically ranging from 10.50% to 24% depending on your credit score and income. Calculate your EMI before applying to ensure the monthly payment fits comfortably within your budget.
What is the EMI for a 5 lakh personal loan?
For a personal loan of Rs 5 lakh at 12% interest for 3 years the monthly EMI would be approximately Rs 16607. The total interest paid over the tenure would be about Rs 97852. If you extend the tenure to 5 years the EMI drops to Rs 11122 but total interest increases to Rs 1.67 lakh.
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Personal Loan EMI Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| Interest Rate Range | 10.50% - 24% per annum |
| Typical Loan Amount | Rs 50000 - Rs 40 lakh |
| Maximum Tenure | 5 years (60 months) |
| Processing Fee | 1% - 3% of loan amount |
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Use Calculator NowFrequently Asked Questions
What is the EMI for a 5 lakh personal loan?
For a personal loan of Rs 5 lakh at 12% interest for 3 years the monthly EMI would be approximately Rs 16607. The total interest paid over the tenure would be about Rs 97852. If you extend the tenure to 5 years the EMI drops to Rs 11122 but total interest increases to Rs 1.67 lakh.
How is personal loan interest calculated?
Personal loan interest is calculated on the reducing balance method. Each month your EMI pays off some principal and some interest. In the early months a larger portion goes toward interest and as the principal reduces more of your EMI goes toward principal repayment. This is why prepaying early saves more interest.
Can I prepay my personal loan early?
Yes most banks allow personal loan prepayment after 6-12 months. Some banks charge a foreclosure fee of 2-5% of the outstanding principal while others like SBI offer zero prepayment charges for floating rate loans. Always check the prepayment terms before signing your loan agreement.
How is EMI calculated?
EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 1200), and n is the tenure in months. This gives you the fixed monthly payment that covers both principal repayment and interest.
Should I choose a longer or shorter loan tenure?
A shorter tenure means higher EMI but significantly less total interest paid. For example, on a Rs 50 lakh loan at 8.5%, choosing 15 years over 20 years saves approximately Rs 12 lakh in interest but increases your EMI by about Rs 14,000. Choose the shortest tenure your budget allows.
Can I prepay my loan to reduce interest?
Yes, making prepayments is one of the smartest financial moves. RBI mandates zero prepayment penalty on floating rate home loans. Even small annual prepayments of Rs 1-2 lakh can save Rs 10-20 lakh in total interest and reduce your tenure by years.
What CIBIL score do I need for a loan?
Most banks require a minimum CIBIL score of 700 for loan approval. A score above 750 helps secure better interest rates. Scores between 650-700 may still get approved but at 0.5-1% higher rates. Below 650, approval becomes difficult with mainstream banks.
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Last updated: March 2026