Calculate EMI, total cost and see how different rates and tenures affect your personal loan repayment.
750+ gets the best rates (10–11%). Below 650 = rejection or 18%+. Check your CIBIL free at CIBIL or Paisa Bazaar before applying.
Prepayment penalty (2–5%), late payment fees (₹1,000–₹3,000/month), and ECS bounce charges add significantly to true cost.
Instant apps with "no CIBIL check" often charge 36–60% annualised. Only borrow from RBI-regulated banks and registered NBFCs.
Compare loans using APR (Annual Percentage Rate), not just the headline rate. It includes all fees and gives a fair comparison across lenders.
Personal loans are among the most widely used unsecured credit products in India, with outstanding balances crossing Rs 11 lakh crore by the end of FY 2023-24 according to RBI data. Unlike home or car loans, personal loans require no collateral and are disbursed quickly - sometimes within hours on digital platforms. They are commonly used for medical emergencies, weddings, home renovation, higher education fees, and debt consolidation. Interest rates typically range from 10.5% to 24% per annum depending on the lender and borrower's CIBIL score.
EMI (Equated Monthly Instalment) is calculated using the standard reducing-balance formula: EMI = P x R x (1+R)^N / ((1+R)^N - 1), where P is the principal, R is the monthly interest rate, and N is the number of months. On a Rs 5 lakh loan at 14% per annum for 3 years, the EMI works out to approximately Rs 17,089 - with total interest paid reaching around Rs 1.15 lakh. SEBI and RBI regulations require lenders to display the effective annual rate (EAR) and total repayment amount prominently in all loan agreements.
This calculator lets you adjust the principal, interest rate, and tenure to compare scenarios side by side. A longer tenure reduces monthly EMI but significantly increases total interest paid. Use the amortisation schedule to understand exactly how much principal versus interest you pay each month - crucial when evaluating prepayment options offered by banks like SBI, HDFC, and ICICI, or NBFCs like Bajaj Finserv and Tata Capital.