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About the Personal Loan EMI Calculator
Personal loans are unsecured, so lenders price them on your credit profile alone. Rates in India run from about 10.5% for salaried applicants at large banks to well over 20% at fintech lenders.
Because tenures are short — usually one to five years — the EMI is high relative to the amount borrowed, but the total interest is far smaller than on a long secured loan. Always compare the total payable, and watch the processing fee, which is typically 1–3% deducted from the disbursal.
The formula
Every bank and NBFC in India uses this reducing-balance formula. Interest is charged only on the outstanding balance, so the interest share of each EMI falls as the loan runs down while the principal share rises.
Things worth knowing
Frequently asked questions
Rates are set by your credit score, employer category and income. A score above 750 with a listed employer usually attracts the lender's best published rate; below 700, expect a significant premium or a decline.
No. It is unsecured, which is precisely why the rate is higher than on a home or property loan. Nothing is pledged, but a default damages your credit record severely.
Pre-approved offers can be disbursed within hours. A fresh application with income documents typically takes one to three working days.
Usually after a lock-in of 6–12 EMIs. RBI bars prepayment charges on floating-rate loans to individuals, but most personal loans are fixed-rate, so a 2–5% charge is common — check your sanction letter.
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