Personal Loan EMI Calculator India
A personal loan can be used for a wide range of expenses, including medical expenses, education, weddings, travel, home renovation, emergencies, debt consolidation and other personal requirements.
Before taking a personal loan, it is important to understand the monthly EMI and the total interest payable. The OneIndia Personal Loan EMI Calculator lets you estimate these figures by entering the loan amount, interest rate and repayment tenure.
How to use the Personal Loan EMI Calculator
Enter the amount you want to borrow, the expected annual interest rate and the repayment period. The calculator immediately estimates the monthly EMI, total interest and total repayment.
- Enter the personal loan amount.
- Enter the annual interest rate.
- Select the repayment tenure.
- Check the estimated monthly EMI.
- Compare total interest with the loan amount.
- Review the yearly amortization schedule.
Personal Loan EMI Formula
Personal loan EMI is generally calculated using the reducing-balance method.
In this formula:
- P = principal or personal loan amount
- r = monthly interest rate
- n = total number of monthly instalments
Personal Loan EMI Example
Suppose you borrow ₹10 lakh at an annual interest rate of 11% for 5 years. The calculator converts the annual rate into a monthly rate and calculates the EMI over 60 monthly instalments.
The resulting EMI is an estimate. Your actual personal loan cost can differ depending on the lender, interest rate, processing fees, insurance and other applicable charges.
What affects personal loan EMI?
Three major factors determine the EMI of a personal loan: loan amount, interest rate and loan tenure.
1. Loan amount
Borrowing a larger amount generally results in a higher EMI. Before applying, consider whether you actually need the full amount or whether a smaller loan would meet your requirement.
2. Interest rate
A higher interest rate generally increases both the monthly EMI and total interest paid. Comparing loan offers can therefore be important when choosing a personal loan.
3. Loan tenure
A longer repayment period generally lowers the monthly EMI because the loan is spread over more months. However, the total interest paid can be substantially higher.
Short tenure vs long tenure personal loan
A short-tenure personal loan usually has a higher monthly EMI but can reduce the total interest cost. A long-tenure loan can make monthly payments easier to manage but may result in more interest over the complete repayment period.
The right tenure depends on your monthly income, existing financial commitments and ability to comfortably make the EMI payments.
Can I use a personal loan for any purpose?
Personal loans are generally unsecured loans and can be used for many legitimate personal expenses, subject to the terms and conditions of the lender.
Common uses include weddings, medical expenses, education, travel, home renovation, large purchases and emergency expenses.
Personal loan EMI and affordability
A personal loan EMI should be considered together with your existing financial commitments. If you already have a home loan, car loan, credit card balances or other EMIs, adding another loan increases your monthly obligations.
Instead of selecting a loan simply because the EMI appears affordable, compare the total repayment amount and interest cost as well.
Personal Loan Amortization Schedule
The table below provides an estimated year-by-year breakdown of principal repayment, interest paid, yearly payments and remaining loan balance.
| Year | Principal Paid | Interest Paid | Yearly Payment | Outstanding Balance |
|---|