What is the EMI for a 1 Lakh personal loan for 5 years?

At 11% p.a., the EMI for a Rs 1 Lakh personal loan over 5 years (60 months) is Rs 2,174 per month. The total interest payable is Rs 30,455, making the total repayment Rs 1,30,455.

How is personal loan EMI calculated?

Personal loan EMI is calculated using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N - 1], where P is the principal amount, R is the monthly interest rate (annual rate divided by 12 divided by 100), and N is the loan tenure in months. For example, Rs 5 lakh at 11% for 3 years gives EMI = Rs 16,369.

Which bank has the lowest personal loan interest rate in India?

As of June 2026, HDFC Bank and Axis Bank offer among the lowest starting rates at approximately 10.50% p.a. for personal loans. SBI starts at 11.45%, ICICI at 10.65%, and Kotak Mahindra at 10.99%. Actual rates depend on credit score, employer category, income, and existing relationship with the bank.

Does a personal loan require collateral?

No, a personal loan is an unsecured loan. You do not need to pledge any asset or collateral such as gold, property, or fixed deposits. Lenders approve personal loans based on creditworthiness, income, employment stability, and repayment capacity.

Can I prepay my personal loan without penalty?

Per RBI guidelines, banks cannot charge prepayment or foreclosure penalties on floating-rate personal loans. For fixed-rate loans, banks may charge up to 2-5% of the outstanding principal as a prepayment fee. Most personal loans in India are on floating rates, so prepayment is typically penalty-free after the initial lock-in period of 6-12 months.

What credit score is needed for a personal loan?

Most banks require a minimum CIBIL score of 700 to approve a personal loan. A score above 750 qualifies you for the best interest rates and higher loan amounts. Scores between 650-700 may get approval at higher rates. Below 650, approval is unlikely from major banks, though some NBFCs may consider applications with additional documentation.

What is the EMI for a 5 Lakh personal loan for 3 years?

At 11% p.a., the EMI for a Rs 5 Lakh personal loan for 3 years (36 months) is Rs 16,369 per month. Total interest payable is Rs 89,291, making the total repayment Rs 5,89,291.

What is FOIR and how does it affect loan eligibility?

FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that goes towards existing EMIs and loan obligations. Banks use FOIR to determine how much additional EMI you can afford. Most banks cap FOIR at 40-55% for personal loans. For example, if your monthly income is Rs 75,000 and existing EMIs are Rs 10,000, your available EMI capacity is Rs 27,500 (at 50% FOIR), which determines your maximum eligible loan amount.

How to reduce personal loan EMI?

Five ways to reduce personal loan EMI: (1) Choose a longer tenure, which spreads the principal over more months. (2) Negotiate a lower interest rate by maintaining a credit score above 750. (3) Transfer the loan to a bank offering a lower rate (balance transfer). (4) Make part-prepayments to reduce outstanding principal. (5) Compare rates from multiple banks before applying.

Is personal loan interest tax deductible?

Personal loan interest is generally not tax deductible under the Income Tax Act. However, if the loan is used for specific purposes, deductions may apply: home renovation (Section 24, up to Rs 30,000 per year), business purposes (deductible as business expense), or purchase of assets used for business. The principal repayment is not deductible in any case.

What documents are required for a personal loan?

Standard documents for a personal loan: (1) Identity proof: Aadhaar, PAN, passport, or voter ID. (2) Address proof: Aadhaar, utility bill, or rent agreement. (3) Income proof: 3-6 months salary slips and bank statements for salaried applicants; ITR for 2-3 years for self-employed. (4) Employment proof: offer letter or employer ID. (5) Passport-size photographs. Requirements vary by bank.

Does the EMI amount change during the loan tenure?

For fixed-rate personal loans, the EMI remains constant throughout the tenure. The split between principal and interest changes each month, but the total payment stays the same. For floating-rate loans, the EMI may change when the bank revises its lending rate linked to the RBI repo rate. Most banks adjust the tenure rather than the EMI when rates change.

What is the maximum personal loan amount and tenure?

Maximum personal loan amounts vary by bank: SBI offers up to Rs 20 lakh, HDFC Bank up to Rs 40 lakh, ICICI Bank up to Rs 50 lakh, and Axis Bank up to Rs 40 lakh for salaried individuals. Maximum tenure is typically 5-7 years (60-84 months). Higher amounts require higher income, better credit scores, and may need an existing banking relationship.

How to calculate personal loan EMI in Excel?

Use the PMT function in Excel: =PMT(rate/12, tenure_months, -principal). For a Rs 5 lakh loan at 11% for 5 years: =PMT(11%/12, 60, -500000) returns Rs 10,871. The negative sign on the principal is required. For Google Sheets, the same formula works. You can also use the manual formula: =P*(R*(1+R)^N)/((1+R)^N-1) where R is the monthly rate.

What is the processing fee for a personal loan?

Processing fees range from 0.5% to 3% of the loan amount, plus 18% GST on the fee. SBI charges up to 1.5%, HDFC Bank up to 2.5%, ICICI Bank up to 2.25%, and Axis Bank up to 2%. Some banks waive processing fees during festive seasons. The fee is deducted upfront from the disbursed amount, so factor it into your borrowing calculations.

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Personal Loan EMI Calculator: Calculate EMI & Interest

What Is a Personal Loan EMI Calculator?

A Personal Loan EMI Calculator is an online tool that computes the Equated Monthly Instalment (EMI) you pay on an unsecured personal loan, based on three inputs: loan amount, interest rate, and tenure.

Personal loans are the most widely used unsecured credit product in the Indian debt market. Per RBI data, outstanding personal loans crossed Rs 50 lakh crore in FY2025, growing at over 15% annually. The unsecured nature makes them accessible without pledging collateral, but the interest rates are higher than secured loans like home or car loans.

Before borrowing, the most critical number to determine is your monthly EMI. This calculator goes beyond basic EMI computation. It includes a prepayment savings tool, a true cost calculator that factors in processing fees and GST, an affordability check based on FOIR, and a 10-bank interest rate comparison, all designed to help you make an informed borrowing decision.

Personal Loan EMI Formula: How to Calculate EMI

The EMI formula is the standard reducing balance method used by every bank and NBFC in India. It calculates equal monthly payments that cover both principal repayment and interest charges over the loan tenure.

EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]

Variables in the EMI formula
Variable	Meaning	Example
P	Principal loan amount	Rs 10,00,000
R	Monthly interest rate (Annual Rate / 12 / 100)	11% / 12 / 100 = 0.00917
N	Loan tenure in months	5 years = 60 months
EMI	Equated Monthly Instalment	Rs 21,742

Worked Example: Rs 10 Lakh at 11% for 5 Years

•P: Rs 10,00,000

•R: 11% / 12 / 100 = 0.009167 per month

•N: 5 years x 12 = 60 months

•EMI: [10,00,000 x 0.009167 x (1.009167)^60] / [(1.009167)^60 - 1] = Rs 21,742

•Total Interest: (Rs 21,742 x 60) - Rs 10,00,000 = Rs 3,04,526

•Total Repayment: Rs 13,04,526

Personal Loan EMI Formula in Excel and Google Sheets

Excel and Google Sheets have a built-in PMT function that calculates EMI directly. Three methods work:

Three methods to calculate personal loan EMI in Excel
Method	Formula	Example (Rs 5L, 11%, 5 yr)
PMT Function	=PMT(rate/12, months, -principal)	=PMT(11%/12, 60, -500000) = Rs 10,871
Manual Formula	=P(R(1+R)^N)/((1+R)^N-1)	=500000(0.00917(1.00917)^60)/((1.00917)^60-1)
IPMT + PPMT	Interest: =IPMT(...), Principal: =PPMT(...)	Use for month-by-month breakdown

The PMT function is the simplest. Enter a negative principal amount (the minus sign tells Excel that money is flowing out). The result is your monthly EMI. For a full amortization schedule in Excel, use IPMT and PPMT functions in adjacent columns for each month.

Personal Loan Interest Rates: 10 Banks Compared (June 2026)

Interest rates for personal loans in India range from 10.49% to 12.05% p.a. across major banks and NBFCs. Your actual rate depends on credit score, employer category, income, and existing relationship with the lender. Below is a comparison of starting rates, processing fees, and maximum loan amounts.

Personal loan interest rates and fees across 10 lenders. Rates are indicative minimums as of June 2026.
Bank / NBFC	Starting Rate (p.a.)	Processing Fee	Max Loan Amount	EMI per Rs 1 Lakh (5 yr)
SBI	11.45%	1.50%	Rs 20 Lakh	Rs 2,197
HDFC	10.50%	2.50%	Rs 40 Lakh	Rs 2,149
ICICI	10.65%	2.25%	Rs 50 Lakh	Rs 2,157
Axis	10.49%	2.00%	Rs 40 Lakh	Rs 2,149
Kotak	10.99%	2.50%	Rs 40 Lakh	Rs 2,174
BOB	11.40%	2.00%	Rs 20 Lakh	Rs 2,194
PNB	11.49%	1.00%	Rs 15 Lakh	Rs 2,199
Canara	12.05%	1.00%	Rs 10 Lakh	Rs 2,227
Bajaj	11.00%	3.00%	Rs 35 Lakh	Rs 2,174
Tata Capital	10.99%	2.75%	Rs 35 Lakh	Rs 2,174

* Rates are indicative starting rates and subject to change based on the lender's policies. Verify current rates on the bank's official website.

Personal Loan EMI Chart: Rs 50,000 to Rs 50 Lakh

This quick reference chart shows monthly EMI for common personal loan amounts at a standard 11% p.a. interest rate across five different tenures. Use the calculator above to check EMI for any custom amount and rate.

Personal loan EMI chart at 11% p.a. across different tenures
Loan Amount	1 Year	2 Years	3 Years	5 Years	7 Years
Rs 50K	Rs 4,419	Rs 2,330	Rs 1,637	Rs 1,087	Rs 856
Rs 1 Lakh	Rs 8,838	Rs 4,661	Rs 3,274	Rs 2,174	Rs 1,712
Rs 2 Lakh	Rs 17,676	Rs 9,322	Rs 6,548	Rs 4,348	Rs 3,424
Rs 5 Lakh	Rs 44,191	Rs 23,304	Rs 16,369	Rs 10,871	Rs 8,561
Rs 10 Lakh	Rs 88,382	Rs 46,608	Rs 32,739	Rs 21,742	Rs 17,122
Rs 20 Lakh	Rs 1,76,763	Rs 93,216	Rs 65,477	Rs 43,485	Rs 34,245
Rs 50 Lakh	Rs 4,41,908	Rs 2,33,039	Rs 1,63,694	Rs 1,08,712	Rs 85,612

Personal Loan Eligibility: FOIR, Credit Score & Income Requirements

Banks assess personal loan eligibility based on three factors: your monthly income, existing debt obligations (FOIR), and credit score. Use the affordability tool above to check your eligibility instantly.

•FOIR Rule: Most banks require total monthly EMIs (including the new loan) to be below 50% of your net monthly income. Some banks allow up to 55% for borrowers with high credit scores.

•Credit Score: A CIBIL score of 750+ gets you the best rates. Scores between 700-750 get approval at slightly higher rates. Below 700, approval chances drop significantly with major banks.

•Minimum Income: SBI requires Rs 15,000/month, HDFC Bank requires Rs 25,000/month, and ICICI Bank requires Rs 17,500/month for salaried applicants. Self-employed applicants typically need higher income thresholds.

•Age: Most banks accept applicants between 21-60 years (salaried) and 25-65 years (self-employed). The loan tenure cannot extend beyond retirement age.

•Employment Stability: Salaried applicants need at least 1-2 years of work experience and 6 months with the current employer. Self-employed applicants need 2-3 years of business vintage.

How Prepayment Reduces Your Personal Loan Interest

Prepaying even a small amount each month can save significant interest over the loan tenure. Per RBI guidelines issued in 2014, banks cannot charge prepayment or foreclosure penalties on floating-rate personal loans.

Consider a Rs 10 lakh loan at 11% for 5 years. The standard EMI is Rs 21,742 with total interest of Rs 3,04,526. If you pay an extra Rs 5,000 per month, the loan closes in approximately 45 months instead of 60, saving Rs 77,000+ in interest. That is a 25% reduction in interest cost for a 23% increase in monthly payment.

The prepayment tool above lets you test different extra payment amounts. For fixed-rate personal loans, check your loan agreement for prepayment charges. These typically range from 2-5% of the outstanding principal.

True Cost of a Personal Loan: Beyond the Interest Rate

The advertised interest rate tells only part of the story. The actual cost of borrowing includes processing fees, GST on those fees, and insurance charges (if applicable). The true cost calculator above factors in these hidden costs.

•Processing Fee: Ranges from 0.5% to 3% of the loan amount. On a Rs 10 lakh loan, a 2% processing fee means Rs 20,000 upfront.

•GST on Processing Fee: 18% GST applies on the processing fee. On a Rs 20,000 processing fee, GST adds Rs 3,600.

•Insurance Premium: Some banks bundle loan protection insurance. While optional per RBI guidelines, branch staff sometimes present it as mandatory. You can decline it.

•Late Payment Charges: Banks charge 2-3% per month on overdue EMIs. Automate your payments through NACH or standing instruction to avoid this.

Personal Loan Amortization Schedule: Principal vs Interest Breakdown

Every EMI payment consists of two components: principal repayment and interest charged. An amortization schedule breaks down this composition across your entire loan tenure, month by month and year by year.

During the first few months, the majority of your EMI goes towards interest because the outstanding principal is at its highest. As you continue paying, the principal gradually decreases. This means the interest component shrinks and a larger portion of each EMI starts reducing your principal.

For a Rs 10 lakh loan at 11% for 5 years: in Month 1, Rs 9,167 goes to interest and Rs 12,575 to principal. By Month 55, interest drops to Rs 1,170 and principal rises to Rs 20,572. You can view your complete amortization schedule by expanding the details section in the calculator above.

Personal Loan vs Other Loan Types: Which Is Right for You?

A personal loan is not always the cheapest borrowing option. If the purpose of borrowing fits a specific loan category, you may get a lower interest rate and longer tenure. Here is how personal loans compare with other credit products available in India:

Comparison of personal loan with other loan types in India
Feature	Personal Loan	Home Loan	Gold Loan	Credit Card Loan
Interest Rate	10.5-24%	8.5-10.5%	7-12%	15-42%
Collateral	None (unsecured)	Property	Gold jewellery	None
Max Tenure	5-7 years	30 years	1-3 years	5 years
Processing Time	1-3 days	7-15 days	Same day	Instant
Tax Benefit	Limited	Sec 24 + 80C	None	None
Best For	Any personal need	Property purchase	Short-term needs	Small purchases

If you need funds for home renovation, a home improvement loan at 8.5-10% is cheaper than a personal loan at 10.5%+. For short-term needs under Rs 5 lakh, a gold loan may offer lower rates if you have jewellery to pledge.

How to Use This Personal Loan EMI Calculator

This calculator provides five tools in one page. Here is how to use each:

EMI Calculator: Enter your loan amount, interest rate, and tenure. The monthly EMI, total interest, and total payable amount appear instantly with a principal vs interest donut chart.
Amortization Schedule: Click "Your Amortization Details" to see the year-by-year (or month-by-month on mobile) breakdown of how each EMI splits between principal and interest.
Prepayment Savings: Expand the prepayment section and adjust the extra monthly payment slider. See how many months you save and how much interest you avoid.
True Cost: Adjust the processing fee percentage to see the actual total cost of your loan including the upfront fee and 18% GST on it.
Affordability Check: Enter your monthly income and existing EMIs. The tool shows your maximum eligible loan amount based on the 50% FOIR rule used by most banks.

Frequently Asked Questions (FAQs)

No, a personal loan is an unsecured loan. You do not need to pledge any asset or collateral (like gold, property, or FDs) to avail it. Lenders approve personal loans based strictly on your creditworthiness, income, and repayment capacity.

Disclaimer: All calculations on this page are indicative only. EMI is computed using the standard reducing balance method and may differ from the actual EMI quoted by your bank due to rounding, day-count conventions, or additional charges. Interest rates shown are indicative starting rates as of June 2026 and are subject to change. This calculator is for educational and planning purposes only and does not constitute financial advice. Consult a SEBI-registered investment adviser or your bank before making borrowing decisions.

Bank	Rate	EMI/mo
SBI	11.45%	₹32,951
HDFC	10.5%	₹32,241
ICICI	10.65%	₹32,352
Axis	10.49%	₹32,233
Kotak	10.99%	₹32,606