Personal Loan Calculator
Loan Summary
Monthly EMI
₹16,727
Total Interest
₹1,02,165
Total Payment
₹6,02,165
Interest to Principal Ratio
20.4%
Payment Breakup
Other Loan Calculators
Personal Loan EMI Calculation Formula
The Personal Loan EMI calculator uses the following formula:
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where:
- P = Principal Loan Amount
- r = Monthly Interest Rate (Annual Rate ÷ 12)
- n = Total Number of Months
Understanding Personal Loan EMI
A personal loan EMI consists of two parts: principal repayment and interest payment. The EMI remains constant throughout the loan tenure, but the proportion of principal and interest components varies with each payment.
Loan Amount
Higher loan amount means higher EMI
Interest Rate
Lower rate means lower total interest cost
Loan Tenure
Longer tenure reduces EMI but increases interest
How to Use This Calculator
- Enter the loan amount you wish to borrow
- Input the interest rate offered by your bank
- Select the loan tenure
- Click Calculate EMI to see your monthly installment
Factors Affecting Personal Loan EMI
- Loan amount
- Interest rate
- Loan tenure
- Credit score
- Processing fees and other charges
Frequently Asked Questions
What is the maximum personal loan amount I can get?
The maximum loan amount depends on your income, credit score, and existing obligations. Most banks offer personal loans up to 30 times your monthly income, subject to eligibility criteria.
What factors affect personal loan interest rates?
Interest rates depend on your credit score, income, employment status, relationship with the bank, and loan tenure. A good credit score and stable income can help secure lower interest rates.
Can I prepay my personal loan?
Yes, most banks allow prepayment of personal loans. However, there might be prepayment charges, typically 2-5% of the outstanding loan amount. Check with your bank for specific prepayment terms.
What documents are required for a personal loan?
Common requirements include identity proof, address proof, income proof (salary slips/ITR), bank statements, and employment details. Requirements may vary by bank and loan amount.
How long does it take to get a personal loan?
With digital processing and pre-approved offers, some banks offer instant personal loans. Generally, it takes 2-7 working days from application to disbursement, depending on documentation and verification.