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Personal Loan EMI Calculator

Quickly calculate monthly payments for weddings, travel, or emergencies. Plan your repayment with precision before borrowing.

USA ($) Mode
$
5K2M
%
0.1%12%

Usually 10.5% - 24%

Months
6M84M

Monthly Payment

$13,432
Principal Amount$300,000
Total Interest$22,363
Total Amount$322,363

Breakup

Tips for Personal Loans

Personal loans are unsecured loans, meaning you don't need to provide collateral (like gold or property). Because of the higher risk for the lender, interest rates are significantly higher than home or car loans.

It is crucial to calculate your EMI beforehand to ensure it fits within your monthly budget without forcing you to compromise on other essential expenses.

The EMI Formula

E = P × r × (1+r)n / [(1+r)n-1]
  • E = EMI (Monthly Repayment)
  • P = Principal Loan Amount
  • r = Monthly Interest Rate (Annual Rate ÷ 12)
  • n = Tenure in Months

Credit Score Impact

A score above 750 is crucial. It can help you get rates as low as 10-11%, whereas a poor score might push rates to 18% or higher.

Debt-to-Income Ratio

Banks generally ensure that your total EMIs (including the new loan) do not exceed 40-50% of your net monthly income.

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Frequently Asked Questions

What is the average interest rate for a Personal Loan?
Personal loan interest rates typically range from 10% to 24% per annum worldwide, depending on your credit score, income stability, and employer profile. Since these are unsecured loans, rates are higher than home loans.
How does my Credit Score affect my EMI?
A higher credit score (e.g., 750+) indicates lower risk to lenders, giving you negotiating power for a lower interest rate. A lower rate directly reduces your monthly EMI and total interest cost.
Is there a penalty for paying off the loan early?
Yes, most banks charge a 'Prepayment' or 'Foreclosure' penalty ranging from 2% to 5% of the outstanding principal if you close the loan before the tenure ends. Always check the loan agreement terms.
What is the maximum tenure for a Personal Loan?
The maximum tenure is usually 5 years (60 months), though some lenders may offer up to 7 years (84 months). Choosing a longer tenure reduces your monthly EMI but increases the total interest paid.

Note: Banks often charge a "Processing Fee" of 1-2% of the loan amount, which is deducted from the disbursement. This calculator shows the EMI on the full sanctioned amount.