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Personal Loan EMI Calculator

Last Updated 20th Nov 2019
  • Lowest personal loan EMI as on 20 Nov 2019 is ₹ 2,149 per lakh.
  • Banks offering lowest EMI on personal loan are Kotak Bank, Citibank, HDFC Bank.

Personal Loan Calculator India

Loan Amount1 year loan3 year loan5 year loan
₹ 1 Lakh₹ 8,815₹ 3,250₹ 2,149
₹ 5 Lakh₹ 44,074₹ 16,251₹ 10,747
₹ 10 Lakh₹ 88,149₹ 32,502₹ 21,494
Personal Loan EMI Calculator
Rs.

Lowest Personal Loan EMI per lakh Nov 2019

BankLowest EMI per lakh Max Tenure
SBI Personal Loan ₹ 1,981 72 months
HDFC Bank Personal Loan ₹ 2,162 60 months
ICICI Bank Personal Loan ₹ 2,187 60 months
Bajaj Finserv ₹ 2,224 60 months
Citibank ₹ 2,149 60 months
IDFC First Bank ₹ 2,199 60 months
Axis Bank ₹ 2,187 60 months
Tata Capital ₹ 1,903 72 months
Fullerton India ₹ 2,633 48 months
IndusInd Bank ₹ 2,174 60 months
Kotak Bank ₹ 2,149 60 months
RBL Bank ₹ 2,326 60 months
IIFL ₹ 2,275 60 months
HDB Financial ₹ 2,326 60 months
PNB ₹ 2,224 60 months
Andhra Bank ₹ 2,202 60 months
Yes Bank ₹ 2,174 60 months
Union Bank of India ₹ 2,260 60 months
Bank of Baroda ₹ 3,302 36 months
Syndicate Bank ₹ 2,296 60 months
Standard Chartered Bank ₹ 2,174 60 months
Bank of Maharashtra ₹ 3,471 36 months
Canara Bank ₹ 2,683 48 months
Muthoot ₹ 2,327 60 months
Corporation Bank ₹ 3,367 36 months
Karur Vysya Bank ₹ 3,413 36 months
Federal Bank ₹ 2,608 48 months
Indian Overseas Bank ₹ 2,260 60 months
Indian Bank ₹ 3,276 36 months
Allahabad Bank ₹ 2,283 60 months
IDBI Bank ₹ 2,286 60 months

Factors affecting Personal loan EMI

Loan amount – This is the amount that 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 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 10.50%₹ 4,638₹ 3,250₹ 2,149
Total amount you pay back to the bank including principal and interest₹ 1.23 Lakh₹ 1.36 Lakh₹ 1.68 Lakh
Interest you have to pay over loan tenure₹ 23,034 ₹ 36,470 ₹ 67,905

At the lowest interest rate of 10.50%, the lowest EMI for a tenure of 5 years is ₹ 2,149 per lakh. You need to pay an interest of ₹ 67,905 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 ₹ 4,638 and total interest of ₹ 23,034 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 consists 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 loan for 5 years is explained below in the table –

Amortisation Schedule for a Personal Loan of Rs. 1 lakh over the 5 years
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 personal loan EMI consists of both amounts 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 the 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 an annual total of EMIs is Rs. 26,088, the interest component is around 40% while the principal component is around 60% in year 1 of loan disbursement. You repay only 15.9% of the total principal instead of paying 12 EMIs during the first year.

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

Personal Loan EMI Calculator Formula

Apart from an 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 the 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

Benefits of Online Personal Loan Calculator

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

Saves time in doing tedious calculations : EMI calculator helps the 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 online Calculator will give you actual results, as wrong calculations may lead to wrong results which can change your EMI for a personal loan and make you change your decision while taking a loan. Therefore, it is always advised to use the 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 affect 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 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 the 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 3 years, the EMI will be Rs. 16,727.

Personal Loan Prepayment

Part prepayment is the amount that you pay before the due date of your EMI when you have additional money with yourself. When you prepay your loan, the 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 every month. 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 an 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 an outstanding principal of Rs. 66,406 and you have to pay another 36 EMIs to pay down your loan fully. The original schedule of your 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, if you have a 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, an outstanding principal is reduced to Rs. 46,406 as a 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 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 personal 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 the same EMI over a shorter tenure can result in the 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 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 to be paid for the same loan amount and interest rate on personal loan.

What is the EMI for personal loan?

EMI stands for Equated Monthly Installment and is the amount that you repay to the lender against the borrowed amount. EMI for the personal loan includes principal component and the interest component. You can calculate the EMI using an online EMI calculator.

What is principal loan amount?

Principal amount is the original amount that you borrow from the lender, not including any interest amount.

How is principal and interest split in EMI?

Personal Loan EMI comprises two components, such as principal and interest rates. When you pay an EMI, all the interest is first paid, and the remaining amount is considered as principal. Every month the interest is calculated on outstanding amount. amount is considered as principal. Therefore, interest is calculated first and then the principal component. Every month the interest is calculated on outstanding amount.
Suppose you have taken Rs. 1 Lakh loan for 12 months at 12% rate. The EMI for the loan will be Rs. 8,885.
Interest component in 1st EMI = (12/12100)1,00,000 = Rs. 1000 Principal component in 1st EMI = 8885 – 1000 = Rs. 7,885
In next EMI, the interest amount will be calculated on an outstanding principal of 1,00,000 – 7,885 = Rs. 92,115. The interest component in EMI is higher in the initial years and reduces over the years. By the end of the tenure, the interest component will come down to zero and the amount you pay as EMI is the remaining principal. This is how interest and principal split in personal loan EMI.

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 the 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 a delay in paying the personal loan EMI?

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

Why is it necessary to calculate EMI beforehand?

It is important to calculate your EMI in advance to maintain stability in future payments. When you avail a loan, you promise the bank to pay a fixed amount at a 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 a 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 the loan amount entered.

Compare Personal Loan EMI of All Banks


Personal Loan News - Nov 2019
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