Personal Loan EMI Calculator

A personal loan is an unsecured loan that can be used for various purposes like medical emergencies, home renovation, wedding expenses, debt consolidation, or any other personal financial need. Our calculator helps you estimate your monthly EMI payments.

Key Features of Personal Loans

• No Collateral Required: Personal loans are unsecured, no need to pledge any assets
• Quick Disbursal: Funds typically disbursed within 24-48 hours of approval
• Flexible Usage: Can be used for any legitimate personal or business purpose
• Fixed Interest Rates: Most personal loans have fixed interest rates throughout the tenure
• Fixed Tenure: Repayment period typically ranges from 1 to 7 years

How Personal Loan EMI is Calculated

EMI is calculated using the formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where: P = Principal loan amount, R = Monthly interest rate (Annual Rate/12/100), N = Number of monthly installments

Interest Rates by Bank Type

• Public Sector Banks: 10-16% per annum
• Private Banks: 10.5-18% per annum
• NBFCs: 12-24% per annum
• Fintech Lenders: 11-20% per annum

Additional Charges

• Processing Fee: 1-3% of loan amount (up to ₹10,000-₹25,000)
• Prepayment Charges: 2-5% if closed before tenure (may be NIL for some banks)
• Late Payment Fee: ₹500-₹1,000 per instance
• Cheque Bounce Charges: ₹300-₹750 per bounce

Eligibility Criteria

• Age: 21-60 years (may vary by lender)
• Income: Minimum ₹15,000-₹25,000 per month
• Credit Score: Minimum 750 for best rates (650+ for approval)
• Employment: Salaried: 2+ years work experience | Self-employed: 3+ years business
• Documents: ID proof, address proof, income proof, bank statements

Tips for Getting the Best Deal

• Compare interest rates from multiple lenders before applying
• Maintain a good credit score (750+) for lower interest rates
• Choose the shortest tenure you can afford to minimize interest
• Read all terms and conditions, especially prepayment clauses
• Negotiate processing fees and try to get them waived
• Set up auto-debit to avoid late payment charges