Personal loan EMI calculator
Personal loans are fast and flexible, but the rate is usually high because there is no collateral. Use the calculator to see the monthly EMI and the total interest before borrowing.
13.66 thousand
For a personal loan of ₹5,00,000 at 14% for 4 years.
Year-by-year repayment
| Year | Principal paid | Interest paid | Total paid | Balance left |
|---|---|---|---|---|
| 1 | ₹1,00,229 | ₹63,730 | ₹1,63,959 | ₹3,99,771 |
| 2 | ₹1,15,197 | ₹48,762 | ₹1,63,959 | ₹2,84,574 |
| 3 | ₹1,32,401 | ₹31,558 | ₹1,63,959 | ₹1,52,174 |
| 4 | ₹1,52,174 | ₹11,785 | ₹1,63,959 | ₹0 |
What makes personal loan EMI different
The EMI formula is identical, but the risk profile is not. A personal loan is unsecured, which means the lender relies mainly on your income, credit history and repayment capacity. That is why rates are usually much higher than home loans and often higher than car loans.
Since the rate is high, stretching tenure can become expensive quickly. A small EMI reduction may hide a large interest increase. Use the yearly repayment table to see how much of the first year is interest versus actual principal reduction.
When a personal loan is risky
- If the EMI depends on overtime, bonus or uncertain business income.
- If the money is being borrowed to invest in stocks, crypto or speculative assets.
- If the loan is being used to pay another high-interest loan without fixing the spending problem.
- If it leaves no room for emergency savings.
Personal loan versus other loans
A home loan is large but usually cheaper and secured by property. A car loan is secured by a depreciating vehicle. A personal loan is usually smaller and faster, but the higher rate makes discipline more important. It should solve a short-term cash-flow need, not become a permanent extension of income.
FAQs
Why are personal loan interest rates high? v
Personal loans are unsecured. The lender does not have a house or car as collateral, so the rate is higher to compensate for risk.
What tenure should I choose for a personal loan? v
Choose the shortest tenure you can comfortably repay. Longer tenure reduces EMI but increases interest, and personal loan rates are high enough that the difference matters quickly.
Should I take a personal loan for investing? v
Usually no. Borrowing at a high fixed rate to invest in market-linked assets creates repayment risk and can go badly if returns arrive late or markets fall.
How much personal loan EMI is safe? v
Keep it well within monthly surplus after essentials, existing EMIs and emergency savings. If repayment depends on a bonus or uncertain income, the loan is riskier than it looks.