Personal Loan EMI Calculator

Last Updated 26th Apr 2018
  • Lowest personal loan EMI as on 26 Apr 2018 is Rs. 2,162 per lakh.
  • Banks offering lowest EMI on personal loan are ICICI Bank, Yes Bank, Citibank, Standard Chartered Bank, HDFC Bank.

Personal Loan Calculator India

Loan Amount1 year loan3 year loan5 year loan
Rs. 1 LakhRs. 8,827 Rs. 3,262 Rs. 2,162
Rs. 5 LakhRs. 44,133 Rs. 16,310 Rs. 10,809
Rs. 10 LakhRs. 88,265 Rs. 32,620 Rs. 21,618
Personal Loan EMI Calculator
Rs.

Lowest Personal Loan EMI per lakh Apr 2018

BankLowest EMI per lakh Max Tenure
SBI Personal LoanRs. 2,658 48 months
HDFC Bank Personal LoanRs. 2,174 60 months
ICICI Bank Personal LoanRs. 2,174 60 months
Bajaj FinservRs. 2,224 60 months
CitibankRs. 2,174 60 months
IDFC BankRs. 2,187 60 months
Axis BankRs. 2,187 60 months
Tata CapitalRs. 2,224 60 months
Fullerton IndiaRs. 2,898 48 months
IndusInd BankRs. 2,224 60 months
Kotak BankRs. 2,199 60 months
RBL BankRs. 2,326 60 months
IIFLRs. 2,275 60 months
HDB FinancialRs. 2,326 60 months
Karur Vysya BankRs. 3,413 36 months
PNBRs. 2,209 60 months
Vijaya BankRs. 2,250 60 months
Union Bank of IndiaRs. 2,348 60 months
Syndicate BankRs. 2,291 60 months
Standard Chartered BankRs. 2,174 60 months
Indian Overseas BankRs. 2,260 60 months
Andhra BankRs. 2,212 60 months
Bank of BarodaRs. 3,302 36 months
Bank of MaharashtraRs. 3,471 36 months
Canara BankRs. 2,725 48 months
Corporation BankRs. 3,357 36 months
Dena BankRs. 3,369 36 months
Federal BankRs. 2,699 48 months
IDBI BankRs. 2,286 60 months
Allahabad BankRs. 2,263 60 months
Indian BankRs. 3,276 36 months
Yes BankRs. 2,162 60 months

Factors affecting Personal loan EMI

Loan amount – This is the amount which a borrower decides to take from the bank in the form of a loan. Higher the personal loan amount, higher will be the EMI.

Rate of interest – This is the interest charged on the borrowed loan amount. Lower the personal loan interest rate, lower the EMI.

Loan Tenure – This is the time period for which you take a loan. Longer the personal loan tenure, lower will be the EMI. Longest loan tenure available across banks in India is 5 years, subject to borrower’s current age and retirement age.

Following table provides a comparison of EMI for a Rs. 1 lakh loan at different tenures:

Loan Tenure2 years3 years5 years
EMI amount for loan amount Rs. 1 lakh at 10.75% Rs. 4,649 Rs. 3,262 Rs. 2,162
Total amount you pay back to the bank including principal and interest Rs. 1.24 Lakh Rs. 1.37 Lakh Rs. 1.70 Lakh
Interest you have to pay over loan tenure Rs. 23,635 Rs. 37,471 Rs. 69,962

At the lowest personal loan rate of 10.75%, the lowest EMI for tenure of 5 years is Rs. 2,162 per lakh. You need to pay an interest of Rs. 69,962 on your loan amount of Rs. 1 lakh over 5 years.

If you take a loan for 2 years at the same rate of interest, you will have to pay a higher EMI of Rs. 4,649 and a total interest of Rs. 23,635 on your loan amount of Rs. 1 lakh for 2 years, which is much lesser than what you paid for a 5 years loan.

Amortisation Schedule for Personal Loan

An amortisation schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortisation schedule, your monthly EMI will be equal but the component of EMI which consist of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration : How to read an amortisation schedule

Suppose if you take a personal loan of Rs. 1 Lakh for 5 years at an interest rate of 10.99%. EMI calculated for this loan amount is Rs. 2,174 and the total annual EMIs to be paid is Rs. 26,088. The EMI schedule of personal loan for 5 years is explained below in the table –

Amortisation Schedule for a Personal Loan of Rs. 1 lakh over the 5 year period
Year Interest paid during the year (as a % of annual EMIs) Principal repaid during the year (as % of annual EMIs) Cumulative principal repayment (in %)
201739%61%15.9%
201832%68%733.6%
201924%76%53.3%
202015%85%75.4%
20216%94%100%

Each loan EMI consist both amount of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in each consecutive EMI while doing calculation.

In the above illustration, on a personal loan of Rs. 1 lakh, taken at the lowest interest rate of 10.99%, EMI paid is Rs. 2,174 and annual total of EMIs is Rs. 26,088, interest component is around 40% while principal component is around 60% in year 1 of loan disbursement. You repay back only 15.9% of the total principal instead of paying 12 EMIs during the first year.

In the year 5, the interest component of EMI is around 6% while principal component is around 94%. Upto year 5, you have cumulatively repaid 100% of your total loan.

Personal Loan EMI Calculator Formula

Apart from online personal loan calculator, you can also calculate your monthly EMI with a mathematical formula. The formula to calculate loan EMI is given below-

P*r* (1+r)^n/([(1+r)^n]-1)

In above formula, P is the loan amount that you want to borrow
r is the rate of interest per month
n is the tenure of loan repayment in months

Personal Loan Calculator Benefits

EMI calculator calculates your loan EMI and has multiple benefits, which are listed below-

Saves time in doing tedious calculations : EMI calculator helps borrower to save time in doing tedious calculations by calculating EMI in seconds, as you will get the output immediately as the moment you enter the personal loan details.

Gives accurate results : Using an EMI Calculator will give you accurate results, as wrong calculations may lead to wrong results which can change your EMI for personal loan and make you change your decision while taking a personal loan. Therefore, it is always advised to use online EMI calculator to get accurate results.

Plan your finances : Personal loan calculator tells you about your EMI which is to paid during the loan tenure and also let you know that whether you will be able to pay back the amount or not. Always go for that amount that does not affects your budget, current financial health as well as your credit score in case you make defaults in loan payments while paying loan EMIs.

Allows to evaluate multiple schedules : EMI calculator also allows you to view the amortisation schedules and EMIs for various combinations of loan tenures and interest rates, thus allowing you to choose the EMIs that suits your repayment or servicing capabilities.

Personal Loan Interest Calculator – Impact on EMI

Flat rate method Vs reducing balance method

Your loan EMI will be higher in case of loan on flat rate while EMI will be lower with reducing rate.

Flat interest rate : Here, the interest rate is calculated on the actual principal amount for the entire period. So, if you opt for a personal loan of Rs. 5 lakhs at 12.50% flat rate of interest for a period of 3 years, the EMI to be paid will be Rs. 19,097. And the total interest per year will be 500,000* (12.50/100) = 62,500. Thus, total interest in 3 years = 62,500 * 3 = 1.87 Lakh. This interest along with the principal amount is distributed over the entire loan tenure to arrive at monthly EMI payments. Here, the impact of repayment of capital is not considered.

Reducing balance method : In this method, the interest rate is charged only on the outstanding loan amount. Generally, in this case the interest rate is higher than the flat rate but actually it may turn out to be cheaper as the interest is paid only on the remaining principal amount. Every month some part of EMI goes towards principal amount, thus the interest is charged on the remaining amount. Hence, there will be a gradual reduction of the principal amount and as a result of the same interest will be applicable on the lesser amount. So, if you opt for a personal loan of Rs. 5 lakhs at 12.50% rate of interest for a period of 3 years, the EMI will be Rs. 16,727.

Personal Loan Prepayment

Part prepayment is that amount which you pay before the due date of your EMI when you have additional money with yourself. When you prepay your loan, bank gives you two options to choose from:

  • To reduce your EMI and keep the loan tenure same
  • To keep the EMI same and reduce your repayment tenure

The choice between the two options depends totally on you which is also a function of your repayment capacity on a monthly basis. We have explained the way EMI or tenure re-adjust after prepayment of personal loan in the illustration below:

Suppose you take a loan of Rs. 1 Lakh for 5 years at an interest rate of 10.99%. Your EMI of the loan is Rs. 2,174 per month and annual total of EMI is Rs. 26,088. This is how your original loan schedule looks like till Year 2. On Rs. 1 lakh of loan amount, you pay Rs. 2,174 as monthly EMI (each month) and an annual payment of Rs. 26,088. By the end of year 2, you have outstanding principal of Rs. 66,406 and you have to pay another 36 EMIs to fully pay down your loan. The original schedule of you loan till year 5, has been shown in the table below:

Original Schedule
Loan AmountRs. 1 Lakh
Tenure (in months)60
Interest Rate10.99%
Monthly EMI, Rs.2,174
Loan schedule Principal repaid Principal outstanding
Year 1Rs. 15,879Rs. 84,121
Year 2Rs. 17,714Rs. 66,406

Now at the end of year 2, you have surplus amount of Rs. 20,000 and you decide to prepay the loan. You have two options:

Option 1 : Reduce your loan tenure and keep your EMI same
Option 2 : Reduce your EMIs and keep the loan tenure unchanged

Option 1 : Reduce your loan tenure and keep your EMI same

If you have Rs. 20,000 as surplus amount and decide to keep the EMI same and reduce the tenure, this is what will happen.

At the end of 2 years, when you prepay an amount of Rs. 20,000, outstanding principal is reduced to Rs. 46,406 as comparison to Rs. 66,406 in your actual amortisation loan schedule. As your loan outstanding reduces and you opt to reduce your loan tenure, at the end of 2 years you are left to pay only 24 EMIs as compared to 36 EMIs as planned in your actual loan schedule. As a result, your total personal loan tenure gets reduced to 48 months as compared to 60 months, which was scheduled earlier. In summary, you repay back your complete loan in 12 months less than what you had planned earlier and continue paying an EMI of Rs. 2,174 every month. Please refer to the table below to understand the calculation on EMI in case of a loan prepayment under option 1:

Revised Schedule, after prepayment of Rs. 20,000 at the end of year 2
Option 1 : Same EMI, shorter tenure
Loan AmountRs. 1 Lakh
Tenure (in months)48
Interest Rate10.99%
Monthly EMI, Rs.2,174
Early Payment, Rs.20,000 in 2nd year
Loan schedule Principal repaid Principal outstanding
Year 1Rs. 15,879Rs. 84,121
Year 2Rs. 37,715Rs. 46,406

Option – 2 : Reduce your EMI and keep the loan tenure same

At the end of 2 years, when you prepay an amount of Rs. 20,000, outstanding principal is reduced to Rs. 46,406 as comparison to Rs. 66,406 in your actual loan schedule. As your loan outstanding reduces and you opt to reduce loan EMIs, your revised EMI now stands at Rs. 1,519 as compared to Rs. 2,174 earlier. Your remaining loan tenure remains unchanged at 60 months and you pay an EMI of Rs. 1,519 which is lower by Rs. 655 as per your actual loan amortisation schedule. Please refer to the table below to understand the calculation on EMI in case of a prepayment under option 2:

Revised Schedule, after prepayment of Rs. 20,000 at the end of year 2
Option 2 : Same tenure, lower EMI
Loan AmountRs. 1 Lakh
Tenure (in months)60
Interest Rate10.99%
Early Payment, Rs.20,000 in 2nd year
Loan schedule Monthly EMI Principal repaid Principal outstanding
Year 1Rs. 2,174Rs. 15,879Rs. 84,121
Year 2Rs. 2,174Rs. 37,715Rs. 46,406
Year 3Rs. 1,519Rs. 13,810Rs. 32,596

Reduction in the number of loan EMIs ease out your monthly expense burden and helps you maintain your living standard. As when your loan EMI reduces, you comparatively pay a lower rate of interest compared to what you have planned in the original loan schedule. However, you still pay higher interest compared to Option 1, in which you decide to reduce your loan tenure after prepayment.

If you plan to prepay, continuing to pay same EMI over a shorter tenure can result in significantly lower interest rate on your personal loan and hence, should be the preferred choice whenever possible.

FAQs on EMI Calculator Personal Loan

How is Personal loan EMI calculated?

Personal loan EMI Calculator uses the combination of loan amount, loan tenure and interest rate to calculate personal loan EMI online. Besides this, it also tells you how much rate of interest you would pay over your loan period. Longer the loan tenure, more the amount of interest for same loan amount and interest rate.

How much should I pay as monthly EMI?

Monthly EMI depends upon your income and expenses. Generally, banks advise you to limit your EMI to 35% to 45% of your net income so that you can pay your EMI without any burden or difficulty. You can calculate your EMI online which will help you to know your repayment capacity.

What if I miss EMI payment or there is an ECS bounce?

If you miss your EMI payment or if there is an ECS bounce then bank may charge a penalty. In addition, it will also be reflected in your CIBIL report and your CIBIL score may get impacted.

What if I get delay in paying the personal loan EMI?

Banks charges penalty for delaying EMI payment. The amount of penalty varies from bank to bank.

Why it is necessary to calculate EMI beforehand?

It is important to calculate your EMI in advance to maintain stability in future payments. When you avail loan, you promise the bank to pay a fixed amount at fixed date every month. So, before availing the loan you should consider the stability of your income, monthly expenses and the existing loan obligations to avoid any discrepancies in future payments.

Does the loan tenure affect my EMI for personal loan?

Personal loan can be availed for maximum tenure of 5 years. Tenure affects your monthly EMI. Longer the tenure of personal loan, lower will be your EMI.

How MyLoanCare EMI calculator helps in calculating EMI?

MyLoanCare EMI calculator calculates the EMIs of different banks as per the details entered by you. You can easily compare the EMIs and opt for the best option. You also get to know about the interest charged on loan amount entered.

Compare Personal Loan EMI of All Banks


Personal Loan News - Apr 2018
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