Personal Loan EMI Calculator India 2026
Compute your monthly EMI, total interest payable, and year-wise amortisation for any personal loan. Current rates: 9.9% to 36% p.a. from top lenders. Use sliders below to model your loan.
Loan details
Year-wise amortisation
| Year | Principal Paid | Interest Paid | Outstanding Balance |
|---|---|---|---|
| Year 1 | ₹1,47,208 | ₹52,078 | ₹3,52,792 |
| Year 2 | ₹1,65,877 | ₹33,408 | ₹1,86,915 |
| Year 3 | ₹1,86,915 | ₹12,371 | ₹0 |
Smart borrowing tips
- EMI formula: P × r × (1+r)^n ÷ ((1+r)^n − 1) where r = monthly rate, n = months
- Personal loan tenure: typically 1–7 years; longer tenure = lower EMI but more total interest
- Compare actual APR (all-in cost) not just interest rate — processing fees add 1–3%
- Prepayment: most lenders allow after 6–12 months; saves significant interest on long tenures
- Salary = 3× EMI rule: banks typically cap EMI at 40–50% of net monthly take-home
- Loan against FD or securities: rates are 1–3% lower than personal loan — consider first
Watch-outs
- •Reducing balance rate is not the same as flat rate — a '12% flat' loan is effectively ~22% reducing
- •Processing fee (1–3% of loan amount) is often deducted upfront — actual disbursement is less than applied amount
- •Insurance bundling: some lenders bundle life/health insurance with the loan — it's optional, decline if not needed
- •Part-prepayment charges: some lenders (especially NBFCs) charge 2–5% on prepaid principal — check before prepaying
- •Multiple applications = multiple hard inquiries on CIBIL — compare rates using Paisabazaar/BankBazaar before applying
Personal Loan FAQ
What is the EMI formula for personal loans?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1). Where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of monthly instalments. Example: ₹5L loan at 12% for 3 years: r = 12/12/100 = 0.01; n = 36. EMI = 5,00,000 × 0.01 × (1.01)^36 ÷ ((1.01)^36 − 1) = ₹16,607/month.
What credit score do I need for a personal loan?
Most major banks (SBI, HDFC, ICICI) require a CIBIL score of 720–750+ for personal loan approval. NBFCs and digital lenders (Bajaj Finserv, Tata Capital, Navi, MoneyView) may approve at 650–680 but with higher interest rates. Below 650, options are limited to gold loans, loan against FD, or credit-builder products.
What is the maximum personal loan amount I can get?
Most lenders cap personal loans at 10–20× your net monthly salary for salaried employees. Maximum EMI they allow is typically 40–50% of net monthly income (existing EMIs are subtracted first). For self-employed, income proof from ITR for last 2 years is the basis. Practical cap for salaried employees: ₹40L–₹50L at top banks; lower for NBFCs. For very high incomes, loan against securities offers better terms.
Is it better to prepay a personal loan or invest the surplus?
Compare: personal loan rate vs expected investment return. If your loan rate is 14% and investment return (FD, PPF, debt MF) is 7%, prepay — guaranteed 14% savings beats 7% return. If loan rate is 11% and you're investing in equity MF expecting 12%+, continuing the loan while investing may work. Also factor in prepayment charges (0–5%) and your marginal tax rate on investment returns. High-rate personal loans (>14%) should almost always be prepaid first.
What documents are needed for a personal loan?
Salaried: PAN, Aadhaar, last 3 months salary slips, last 6 months bank statement, latest Form 16, employment proof. Self-employed: PAN, Aadhaar, GST registration, last 2 years ITR with computation, last 12 months bank statement, CA-certified balance sheet. Digital lenders (Navi, MoneyView) do completely paperless via DigiLocker — just PAN + Aadhaar + video KYC.
What is the difference between flat rate and reducing balance rate?
Flat rate: interest computed on the original principal throughout the tenure. Reducing balance: interest computed on outstanding principal, which reduces each month as you pay EMI. A '12% flat rate' is equivalent to approximately 21–22% reducing balance. RBI mandates banks to quote APR (annual percentage rate) on reducing balance basis for comparison. Always confirm which rate is being quoted — a lower flat rate can be more expensive than a higher reducing rate.