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Personal loan EMI calculator
EMI for an unsecured personal loan, usually 1 to 5 years.
Quick answer
A personal loan EMI is the fixed monthly payment on an unsecured loan, which usually has a short tenure and a higher rate. Formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). A ₹3,00,000 personal loan at 14% for 3 years is about ₹10,253 a month.
Read the guide: How to compare personal loan offers by EMI and cost
Monthly EMI
₹10,253
- Total interest
- ₹69,118
- Total payment
- ₹3,69,118
- Interest share of what you pay
- 18.7%
- Principal
- Interest
Year-by-year table
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹1,23,039 | ₹86,447 | ₹36,592 | ₹2,13,553 |
| 2 | ₹1,23,039 | ₹99,357 | ₹23,682 | ₹1,14,196 |
| 3 | ₹1,23,039 | ₹1,14,196 | ₹8,844 | ₹0 |
How is a personal loan EMI calculated?
Personal loans carry no security, so rates are higher than for home or car loans. That makes the tenure choice matter more.
Use the table to see how quickly the balance falls. If you can, repay a lump sum early; the prepayment calculator shows the interest saved.
Remember that processing fees (often 1 to 3%) are not in this calculation.
What is the formula for a personal loan EMI?
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P = loan amount, r = interest rate per year ÷ 12 ÷ 100, n = number of monthly instalments
Can you show a worked example of a personal loan EMI?
A personal loan of ₹3,00,000 at 14% for 3 years: EMI = ₹10,253. You pay ₹3,69,118 in total, which is ₹69,118 of interest.
What is the EMI on a ₹3 lakh personal loan?
Monthly EMI on a personal loan of ₹3,00,000.
| Interest rate | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| 10% | ₹26,375 | ₹13,843 | ₹9,680 | ₹6,374 |
| 12% | ₹26,655 | ₹14,122 | ₹9,964 | ₹6,673 |
| 14% | ₹26,936 | ₹14,404 | ₹10,253 | ₹6,980 |
| 16% | ₹27,219 | ₹14,689 | ₹10,547 | ₹7,295 |
| 18% | ₹27,504 | ₹14,977 | ₹10,846 | ₹7,618 |
Common questions
Why is the personal loan rate higher?
There is no property or vehicle as security, so the lender takes more risk and charges more.
What EMI is safe for my income?
Lenders usually want all your EMIs together to stay under about 40 to 50% of monthly income. See the loan eligibility calculator.
Is a flat rate the same as a reducing rate?
No. A flat rate charges interest on the full amount for the whole tenure, so it costs much more than the same quoted reducing rate. This calculator uses the reducing rate.
Can I prepay a personal loan?
Often yes, after a few EMIs and sometimes with a fee of 2 to 5% of the amount prepaid. Read your agreement first.