Personal Loan EMI Calculator
Estimate your monthly installments, total interest cost, and amortization schedule for unsecured personal loans in India. Model your borrowing before applying to avoid over-leveraging your monthly income.
Monthly EMI
₹9,964
3 yr loan at 12% p.a.
Principal
₹3,00,000
Total Interest
₹58,715
Total Payable
₹3,58,715
Estimates only. Actual EMI varies by lender.
How Personal Loan EMIs Work in India
Unlike home or auto loans, personal loans are unsecured borrowings — meaning they require no collateral, hypothecation, or mortgage. Because the lender bears higher default risk, personal loan interest rates are notably higher (typically 10.5% to 22% p.a.) and tenures are shorter (1 to 5 years).
Every monthly EMI you pay is split between two components:
- Interest Payment: The charge levied by the bank for utilizing borrowed capital, calculated on the outstanding balance.
- Principal Repayment: The portion that directly reduces your remaining loan obligation.
Sample Personal Loan Scenarios: Impact of Tenure on Total Interest
Consider a ₹5,00,000 personal loan at an interest rate of 12% per annum across varying repayment tenures:
| Loan Amount | Tenure | Interest Rate | Monthly EMI | Total Interest Paid | Total Outflow |
|---|---|---|---|---|---|
| ₹5,00,000 | 2 Years (24 mos) | 12.0% p.a. | ₹23,537 | ₹64,881 | ₹5,64,881 |
| ₹5,00,000 | 3 Years (36 mos) | 12.0% p.a. | ₹16,607 | ₹97,858 | ₹5,97,858 |
| ₹5,00,000 | 5 Years (60 mos) | 12.0% p.a. | ₹11,122 | ₹1,67,333 | ₹6,67,333 |
Current Indicative Personal Loan Rates in India (2025)
| Lender | Interest Rate Range (p.a.) | Processing Fee | Maximum Tenure |
|---|---|---|---|
| State Bank of India (SBI) | 10.55% – 14.50% | Nil to 1.50% | 72 Months |
| HDFC Bank | 10.75% – 16.00% | Up to ₹4,999 + GST | 60 Months |
| ICICI Bank | 10.85% – 16.25% | Up to 2.50% + GST | 60 Months |
| Axis Bank | 10.99% – 18.00% | 1.50% – 2.00% | 60 Months |
| Kotak Mahindra Bank | 10.99% – 16.99% | Up to 3.00% + GST | 60 Months |
| Bajaj Finserv Personal Loan | 11.00% – 22.00% | Up to 3.93% + GST | 60 Months |
The Flat vs. Reducing Balance Interest Trap
Borrowers are often misled by marketing claims of "flat 6% interest rate" on personal loans. Understanding the mathematical difference is vital:
⚠️ Flat Interest Rate Trap
Interest is calculated on the full initial loan amount throughout the loan tenure, even when you have already repaid 90% of the loan. A 7% flat rate is equivalent to approximately a 13% to 14% reducing balance rate.
✅ Reducing Balance Rate (CarHaven Standard)
Interest is charged only on the principal outstanding at the beginning of each monthly cycle. As you pay down the principal, the monthly interest charge decreases consistently.