How to use this personal loan calculator
- Enter the loan amount you need.
- Set the annual interest rate — check your bank's current rate for accuracy.
- Choose the loan tenure in years (1–7 years is typical for personal loans).
- View your monthly EMI, total interest, and total payable instantly.
- Expand the amortization schedule for a detailed principal vs interest breakdown.
What is a personal loan?
A personal loan is an unsecured loan — you don't pledge any asset as collateral. Banks approve it based on your income, credit score, and repayment capacity. Because there's no collateral, personal loan interest rates (10–24% p.a.) are higher than home or car loans.
Common uses include medical emergencies, wedding expenses, home renovation, travel, debt consolidation, and large purchases.
Personal loan EMI formula
Where P = loan principal, r = monthly interest rate (annual ÷ 12 ÷ 100), n = tenure in months.
Personal loan eligibility factors
| Factor | Typical requirement |
|---|---|
| Age | 21–60 years |
| Minimum income (salaried) | ₹15,000–₹25,000/month |
| Credit score (CIBIL) | 700+ (750+ for best rates) |
| Employment | Salaried or self-employed (2+ years) |
| EMI-to-income ratio | Should not exceed 50–60% |
Frequently asked questions
Can I get a personal loan with a low credit score?
Some lenders offer personal loans for scores as low as 650, but at significantly higher interest rates (18–24%). Improving your credit score before applying can save you thousands in interest.
Is personal loan interest tax deductible?
Personal loan interest is not tax deductible unless the loan is used for business purposes, home renovation (under Section 24), or higher education (under Section 80E). Keep documentation of end use.
Can I prepay my personal loan early?
Yes. Most banks allow prepayment after 6–12 months. Prepayment charges typically range from 2–5% of the outstanding principal. Some lenders waive charges for floating-rate personal loans.
How many days does personal loan approval take?
With digital lenders and pre-approved offers, disbursement can happen within hours. Traditional bank processing takes 2–7 business days depending on documentation and verification.