How to use the personal loan EMI calculator
- Enter the loan amount, the rate offered and the tenure. The defaults are an example, not a live rate.
- Add your take-home pay to check the EMI fits your budget.
- In the true cost panel, enter the processing fee to see the APR you really pay.
- Enter the foreclosure charge and when you might close the loan to see if it saves money.
- Add each lender's offer to the comparison table.
Personal loan EMI on ₹5 lakh
| Tenure | 11% | 14% | 18% |
|---|---|---|---|
| 1 year | ₹44,191 | ₹44,894 | ₹45,840 |
| 2 years | ₹23,304 | ₹24,006 | ₹24,962 |
| 3 years | ₹16,369 | ₹17,089 | ₹18,076 |
| 4 years | ₹12,923 | ₹13,663 | ₹14,687 |
| 5 years | ₹10,871 | ₹11,634 | ₹12,697 |
Rates are examples across the usual range; your offer depends on your credit score, income and lender.
What a processing fee really costs
| Fee | Fee with GST | Amount you receive | APR |
|---|---|---|---|
| 0% | ₹0 | ₹5,00,000 | 12.00% |
| 1% | ₹5,900 | ₹4,94,100 | 12.83% |
| 2% | ₹11,800 | ₹4,88,200 | 13.67% |
| 3% | ₹17,700 | ₹4,82,300 | 14.53% |
₹5 lakh at 12% for 3 years. The APR is the reducing rate on the money you actually receive, so it captures the fee.
Foreclosure and part-prepayment
- Floating-rate loans to individuals for personal use carry no pre-payment charges (RBI, for loans from 1 January 2026).
- Fixed-rate personal loans can carry a foreclosure fee, and GST is added to it. Many lenders also need a minimum number of EMIs first.
- Prepaying early saves the most, because interest is highest in the first months. Test it in the prepayment planner above or the loan prepayment calculator.
- Undisclosed charges cannot be levied: check the sanction letter and key facts statement.
Frequently asked questions
How is personal loan EMI calculated?
Banks and NBFCs use the reducing-balance formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). For ₹5 lakh at 12% over 3 years the EMI is ₹16,607 and the total interest ₹97,858.
What is the real cost of a personal loan with a processing fee?
The fee, plus 18% GST, is usually deducted from the amount paid out, but you repay EMIs on the full loan. A 2% fee on ₹5 lakh at 12% for 3 years means you receive ₹4,88,200, which raises the annual cost (APR) to about 13.67%. Lenders must show the APR in the key facts statement.
Can I foreclose a personal loan without charges?
It depends on the rate type. Under RBI's Pre-payment Charges on Loans Directions, 2025, lenders cannot levy pre-payment charges on floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026. Most personal loans are fixed-rate, and on those lenders may charge a foreclosure fee (often a few percent of the outstanding, plus GST) if it is disclosed in the loan agreement and key facts statement.
What is the difference between a flat and a reducing rate?
A flat rate charges interest on the full loan for the whole tenure; a reducing rate charges it only on what you still owe. A 12% flat rate on ₹5 lakh for 3 years gives an EMI of ₹18,889, the same as a reducing rate of about 21.2%. Always ask for the reducing rate or APR.
What credit score do I need for a personal loan?
Personal loans are unsecured, so the rate depends heavily on your credit score, income and employer. A CIBIL score of 750 or above usually gets the best offers; below about 700, expect higher rates or a smaller loan. Several applications in a short time can lower your score, so compare offers before applying.
Is personal loan interest tax deductible?
Not when the money is spent on personal needs. If the loan is used to buy or build a house, or for business, the interest may be deductible under those rules, provided you can show how the money was used.