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Personal Loan EMI Calculator India — FY 2025-26

Calculate your personal loan EMI instantly. See how your CIBIL score impacts the interest rate, compare the true cost across credit score tiers, and check if a balance transfer to a lower rate saves money after processing fees. Updated with March 2026 bank rates and RBI rules.

Personal loans typically range from ₹50,000 to ₹40 lakh
% p.a.
SBI 11-14%, HDFC 10.75-14%, ICICI 10.60-16.50%
years
Personal loans: 1-5 years (some banks offer up to 7 years)

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How to Use This Calculator

Personal Loan EMI tab

Enter the loan amount you need, the interest rate offered by your bank, and the loan tenure in years. The calculator instantly shows your monthly EMI, total interest payable, total repayment amount, and estimated processing fee with GST. Use this to compare offers from different banks before applying.

Credit Score Impact tab

Enter the loan amount and tenure, then select your CIBIL score tier. The calculator shows the EMI and total interest at each credit score level side-by-side, so you can see exactly how much a better CIBIL score saves you. If your score is below 750, it shows the potential savings from improving it.

Balance Transfer tab

Enter your outstanding loan amount, current interest rate, remaining tenure, and the new rate offered by another bank. The calculator computes your interest savings, deducts estimated transfer costs (processing fee + GST), and tells you whether the balance transfer is worth it.

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The Formula

Personal loan EMI is calculated using the standard reducing-balance (amortisation) formula:

EMI Formula:
EMI = P × r × (1 + r)n / [(1 + r)n − 1]

Where:
P = Principal loan amount
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of months (tenure in years × 12)

Total Interest:
Total Interest = (EMI × n) − P

Total Payment:
Total Payment = EMI × n

True Cost of Loan:
True Cost = Total Interest + Processing Fee + GST on Processing Fee
Processing fee is typically 1–3% of loan amount, plus 18% GST on the fee

This formula uses the reducing-balance method, where interest is charged on the outstanding principal. Each EMI payment consists of an interest component and a principal component. In the early months, a larger portion goes to interest; as the loan matures, more goes towards principal repayment.

Example

Rahul — Mumbai IT professional, &rupee;5,00,000 personal loan for 3 years

Rahul is 30, works in IT in Mumbai, and needs a &rupee;5,00,000 personal loan for his sister's wedding. His CIBIL score is 762, so he qualifies for a 12% rate from SBI. He also has a friend Amit with CIBIL 680 who gets offered 16%.

Step 1: Rahul's EMI at 12%

Loan amount (P)&rupee;5,00,000
Interest rate12% p.a.
Tenure3 years (36 months)
Monthly rate (r)12% / 12 = 1%

Step 2: Rahul's result

Monthly EMI&rupee;16,607
Total interest&rupee;97,852
Total payment&rupee;5,97,852
Processing fee (2% + GST)&rupee;11,800
True cost of loan&rupee;1,09,652

Step 3: Amit's cost at 16% (CIBIL 680)

Amit's EMI at 16%&rupee;17,582
Amit's total interest&rupee;1,32,938
Extra interest vs Rahul&rupee;35,086

Step 4: Balance transfer scenario

If Amit transfers at &rupee;3L outstanding, 15% to 12%
Interest saved&rupee;9,672
Transfer cost (2% + GST)&rupee;7,080
Net savings&rupee;2,592

Rahul pays &rupee;16,607/month for his &rupee;5 lakh loan. His friend Amit, with a lower CIBIL score, pays &rupee;975 more per month — that is &rupee;35,086 extra over 3 years. A 70-point CIBIL improvement would save Amit over &rupee;35,000.

FAQ

A personal loan is an unsecured loan — you don't need to pledge any collateral like a house or car. Banks approve it based on your income, employment stability, and CIBIL score. EMI (Equated Monthly Instalment) is the fixed amount you pay every month, which includes both principal repayment and interest. With each EMI, the interest portion decreases and the principal portion increases as the outstanding balance reduces. Personal loans in India typically range from &rupee;50,000 to &rupee;40 lakh with tenure of 1 to 5 years.
Most banks require a CIBIL score of 700+ for personal loan approval, but 750+ gets you the best interest rates. With a score of 750+, expect rates of 10.5–12%. A score of 700–749 typically means 13–15%. A score of 650–699 leads to higher rates of 15–18% or limited options. Below 650, most banks will reject the application outright. Your CIBIL score is the single biggest factor in determining your interest rate — a 50-point improvement can save you 2–3% on the rate, translating to lakhs in savings over the loan tenure. Check your score free at cibil.com.
Yes, for floating-rate loans. The RBI issued a directive (effective 1 January 2026) that prohibits banks and NBFCs from charging any prepayment or foreclosure penalty on floating-rate loans given to individuals for non-business purposes. This covers personal loans, home loans, and education loans. You can prepay partially or fully at any time, from any source of funds, with zero charges. For fixed-rate personal loans (which are uncommon), banks may still charge 2–5% foreclosure penalty. Always confirm with your bank whether your loan is on a floating or fixed rate.
Beyond interest, the key charges are: Processing fee — 1–3% of the loan amount, charged upfront, plus 18% GST on the fee. For a &rupee;5 lakh loan, this is &rupee;5,000–15,000 + GST. Late payment fee — &rupee;500–1,000 or 2% of overdue EMI per month. Bounce charges — &rupee;500–750 per bounced ECS/NACH mandate. Documentation/stamp duty — varies by state and lender. Insurance — some banks bundle loan protection insurance at 0.5–1% of the loan amount; this is optional and you can decline it. Under RBI's 2026 guidelines, all charges must be disclosed upfront in the Key Facts Statement before you sign the agreement.
A balance transfer makes sense when: (1) The new bank offers a rate at least 2–3% lower than your current rate. (2) You have at least 2 years of tenure remaining — with shorter tenures, transfer costs may exceed savings. (3) Your CIBIL score has improved since you took the original loan, qualifying you for better rates. (4) The new bank's processing fee doesn't wipe out the interest savings. Use the Balance Transfer tab to calculate exact net savings. Remember: under RBI rules, your current bank cannot charge prepayment penalty on floating-rate loans, so the only cost is the new bank's processing fee.

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