How to interpret your result
Monthly EMI is your fixed monthly payment; Total Interest is the true cost of borrowing over the full tenure; Total Repayment (principal + interest) is what you'll pay back in all. A longer tenure lowers your EMI but raises total interest — don't choose a tenure on EMI affordability alone without checking what it does to the total cost.
Personal loans carry no collateral and the widest rate range of any common loan type (roughly 10–24% p.a.) — your actual rate depends heavily on your CIBIL score and existing EMI obligations, so treat the rate you enter as a starting estimate to confirm against your specific offer, not a market average.
This calculator assumes a standard reducing-balance EMI schedule. If your lender quotes a flat-rate loan instead, your actual interest cost will run noticeably higher than the reducing-balance figure shown here for the same headline rate — always ask which method applies before comparing offers.
Personal loan EMI: what you're actually paying
A personal loan is an unsecured loan — no collateral needed. Banks and NBFCs charge higher rates than home or car loans to compensate for that risk. Understanding the EMI and total interest before signing is critical.
How personal loan EMI is calculated
The EMI formula is the same as any amortised loan:
EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ – 1]
Where: P = principal, r = monthly rate (annual rate ÷ 12 ÷ 100), n = tenure in months
At 14% p.a. over 5 years, roughly 40% of total repayment is interest. At 20% p.a., that rises to 57%.
Typical personal loan rates in India (2025)
See typical rates by lender type above.
5 ways to reduce your personal loan cost
- Negotiate rate before disbursement — banks have headroom, especially for existing account holders
- Prepay when possible — RBI allows prepayment after 12 months; saves significant interest
- Opt for shorter tenure — EMI is higher but total interest drops sharply
- Balance transfer — switch to a lender offering lower rates; check processing fee math
- Borrow only what you need — interest on the margin you don't use still accrues