Personal Loan Calculator
Calculate the monthly EMI, total interest, and total payback for an unsecured personal loan.
Loan Amount
₹
Interest Rate (% p.a.)
%
Loan Tenure (Years)
Yr
Monthly EMI
₹ 10,253
Total Interest
₹ 69,118
Total Payment
₹ 3,69,118
What makes a personal loan different?
A personal loan is unsecured — unlike a home or car loan, you don't pledge any collateral against it. Because the lender takes on more risk, personal loans typically carry noticeably higher interest rates than secured loans, and tenures are usually much shorter (1-5 years rather than 15-30). Lenders lean more heavily on your credit score and income when deciding both your eligibility and your rate.
How the EMI is calculated
Personal loan EMIs use the same reducing-balance formula as any other amortizing loan:
Where P is the loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the tenure in months.
Example
A ₹3,00,000 personal loan at 14% annual interest over 3 years (36 months) works out to an EMI of about ₹10,255/month, with total interest of roughly ₹69,180 over the loan's life — notably more interest, relative to the amount borrowed, than a secured loan at a lower rate would carry.
Common Use Cases
- Budgeting the monthly EMI for a debt-consolidation, medical, or wedding personal loan.
- Comparing offers from different lenders at different rates before signing.
- Checking whether a shorter tenure at a higher EMI saves meaningfully on total interest.
FAQs
Why is my personal loan rate higher than a home loan rate?
Because a personal loan has no collateral backing it, the lender absorbs the full loss if you default — so they charge a higher rate to compensate for that added risk, unlike a home loan where the property itself secures the debt.
Does my credit score affect the rate I get?
Significantly. Since there's no collateral, lenders rely heavily on your credit score and income stability to price the loan — a higher score typically unlocks a meaningfully lower rate on an unsecured personal loan than a borderline applicant would be offered.
Is prepaying a personal loan worth it?
Usually yes, since personal loan rates are relatively high — prepaying reduces the principal you're paying interest on for the remaining tenure. Check your lender's prepayment or foreclosure charges first, as some apply a fee on early repayment.