Personal loan EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). A ₹5 lakh personal loan at 14% for 3 years has an EMI of ₹17,089 and total interest of ₹1.15 lakh. A 2% processing fee adds ₹10,000 upfront, pushing the effective APR closer to ~15.6%. Always compare EMI + processing fee + prepayment penalty across at least three lenders.
About this calculator
A personal loan calculator computes your monthly EMI and the total amount you repay over the loan tenure, including a processing fee that most banks charge upfront. Personal loans are unsecured — meaning no collateral — which is why their interest rates are significantly higher than home or car loans, typically 10.5–24% per annum in India.
The true cost of a personal loan is higher than just the interest rate. A 1% processing fee on a ₹5 lakh loan adds ₹5,000 upfront, which effectively raises the annualized cost of the loan. This calculator shows the total disbursed amount after the fee, so you know exactly what you are working with.
Common uses
- Calculate monthly EMI for medical emergencies, wedding expenses, or travel loans
- Compare personal loan offers by finding the lowest total cost including processing fees
- Decide between a shorter and longer tenure to balance EMI affordability and total interest
- Estimate how much personal loan you can afford based on your monthly take-home salary
- Check the effective interest rate after accounting for the processing fee
Frequently asked questions
What is the interest rate on a personal loan in India?
Personal loan rates in India typically range from 10.5% to 24% per annum depending on the bank, your credit score, employer, and salary. Salaried employees at large corporations with CIBIL scores above 750 get the best rates. NBFCs and fintech lenders may offer faster approvals but at higher rates, sometimes exceeding 24%.
How does the processing fee affect personal loan cost?
The processing fee (typically 0.5–3% of the loan amount) is usually deducted upfront from the disbursed amount. So if you take a ₹5 lakh loan with a 1% processing fee, you actually receive ₹4.95 lakh but repay EMIs based on ₹5 lakh. This makes the effective APR higher than the stated interest rate.
What tenure should I choose for a personal loan?
Personal loans are typically available for 1–5 years. A shorter tenure saves significant interest. A ₹5 lakh loan at 14% for 2 years costs about ₹76,000 in interest, while the same loan over 5 years costs about ₹2 lakh. Choose the shortest tenure where the EMI stays within 40% of your in-hand monthly income.
Does prepaying a personal loan incur charges?
Most banks charge a prepayment penalty of 2–4% on the outstanding balance if you foreclose the loan within the first 12 months. After that, many banks waive the penalty. Check the specific terms with your lender. RBI regulations prohibit floating-rate loan prepayment charges, but personal loans are usually at fixed rates.