Understand the true cost of a personal loan before you apply.
Personal loans are unsecured, which means the lender has no collateral to fall back on if you default — so interest rates are noticeably higher than secured loans like home or car loans, often ranging from 10% to over 24% per annum depending on your credit profile. Because the rate has such a big impact here, it's worth comparing offers carefully rather than accepting the first one, and this calculator lets you test different rate and tenure combinations in seconds.
Enter the amount you need, the interest rate quoted, and your preferred tenure, and you'll immediately see the EMI, total interest, and total repayment — along with a full amortization table so you know exactly how the balance reduces every month.
The advertised interest rate is rarely the full cost of a personal loan. Processing fees (commonly 1-3% of the loan amount), documentation charges, and sometimes bundled insurance can add meaningfully to what you actually pay. Ask your lender for the Annual Percentage Rate (APR) or effective interest rate, which folds these charges in, and compare that figure — not just the headline rate — across lenders.
Because personal loan tenures are usually short (1 to 5 years), the EMI is more sensitive to the loan amount and rate than to small tenure changes. Use the slider to check whether reducing your loan amount or negotiating even a 1-2% lower rate makes a bigger dent in your EMI.
For example, a ₹3,00,000 personal loan at 14% annual interest over 5 years works out to an EMI of about ₹6,980 a month, with total interest of roughly ₹1,18,829 — a total repayment of about ₹4,18,829.
$6,980
$118,829
$418,829
Principal · 72%
$300,000
Total Interest · 28%
$118,829
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| 1 | $44,553 | $39,213 | $255,447 |
| 2 | $51,206 | $32,559 | $204,241 |
| 3 | $58,854 | $24,912 | $145,388 |
| 4 | $67,643 | $16,123 | $77,745 |
| 5 | $77,745 | $6,021 | $0 |
What credit score do I need for a personal loan?
Most lenders prefer a credit score of 700 or above for the best rates. Scores between 650-700 can still qualify but usually at a higher interest rate, while scores below 650 may face rejection or need a co-applicant.
What is a good interest rate for a personal loan?
Rates below 12% per annum are considered competitive in India, while rates above 18-20% are on the expensive end and usually reflect a lower credit score or a shorter credit history. Always compare the effective rate (including fees), not just the headline rate.
How much processing fee do lenders usually charge?
Processing fees typically range from 1% to 3% of the loan amount, deducted upfront from the disbursed amount. A ₹3,00,000 loan with a 2% processing fee, for instance, means you actually receive ₹2,94,000 while still repaying EMIs calculated on the full ₹3,00,000.
Can I prepay a personal loan without penalty?
Many lenders allow prepayment after a lock-in period of 6-12 months, though some charge a prepayment penalty of 2-5% on the outstanding amount for fixed-rate loans. RBI rules prohibit prepayment penalties on floating-rate loans taken by individual borrowers for non-business purposes.
How much personal loan EMI can I afford?
A common rule of thumb is to keep all your EMIs combined under 40-50% of your net monthly income. Use our loan eligibility calculator to estimate the maximum EMI and loan amount your income can support.