Personal Loan EMI Calculator

What is Personal Loan EMI?

Personal Loan EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay your personal loan. Unlike home loans or car loans, personal loans are unsecured loans, meaning they don't require any collateral. This makes them convenient for various purposes like medical emergencies, weddings, travel, home renovation, or debt consolidation.

The EMI amount remains constant throughout the loan tenure, making it easier for borrowers to plan their monthly budgets. Each EMI payment consists of two components: the principal amount and the interest. In the early stages of the loan, a larger portion of your EMI goes towards interest, while in later stages, more goes towards principal repayment.

Personal loans in India typically have interest rates ranging from 10% to 24% per annum, depending on the lender, your credit score, income, and employment type. Understanding your EMI before taking a loan helps you assess affordability and choose the right loan amount and tenure.

How Personal Loan EMI is Calculated

The Personal Loan EMI is calculated using a standard mathematical formula that takes into account the principal amount, interest rate, and loan tenure. Here's the formula:

Where:

• P = Principal loan amount (the amount you borrow)
• R = Monthly interest rate (Annual rate divided by 12 and then by 100)
• N = Loan tenure in months

Example Personal Loan EMI Calculation

For a personal loan of ₹5,00,000 at 12% for 36 months:

• Monthly EMI: ₹16,607
• Total Interest Payable: ₹97,852
• Total Amount Payable: ₹5,97,852

Factors Affecting Personal Loan EMI

• Loan Amount: Higher loan amounts result in higher EMIs
• Interest Rate: Rates vary from 10% to 24% based on your credit score
• Loan Tenure: Longer tenures reduce EMI but increase total interest
• Credit Score: A CIBIL score above 750 helps negotiate better rates
• Employment Type: Salaried individuals often get lower rates

Benefits of Using Personal Loan EMI Calculator

• Know your exact EMI before applying
• Compare different loan options easily
• Plan your monthly budget effectively
• Understand total interest payable
• Save time with instant calculations

Personal Loan Eligibility Criteria

Most banks and NBFCs in India have similar eligibility criteria:

• Age: 21-60 years (salaried), 25-65 years (self-employed)
• Minimum Income: ₹25,000/month (salaried), ₹3 lakh/year (self-employed)
• Work Experience: 1-2 years (salaried), 3+ years (self-employed)
• Credit Score: 700+ for better approval chances
• Loan Amount: ₹50,000 to ₹40 lakh based on eligibility