About this calculator
A personal loan carries no collateral, which is why it costs more than a home or car loan. Rates for salaried borrowers usually sit between 10.5% and 16%, while self-employed applicants and borrowers with a thin credit file can be quoted above 20%.
Because the tenure is short, the EMI is dominated by the principal rather than the interest. Use the calculator to compare a 3-year and a 5-year option: the shorter one raises the monthly figure but often saves 15–20% of the total interest.
How to use it
- Enter the amount you plan to borrow — not the asset price, unless you are financing the whole thing.
- Set the annual interest rate your lender has quoted, and the tenure in months.
- Read the monthly EMI, then check the amortisation table to see how much of it is interest in year one.
How the EMI is worked out
The calculator uses the standard reducing-balance formula used by every bank in India:
EMI = [P × r × (1 + r)n] ÷ [(1 + r)n − 1]
where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. In Excel the same answer comes from =PMT(rate/12, months, -amount).
What decides your interest rate
- Credit score and repayment history — the single biggest driver of your rate.
- Monthly income and existing EMI obligations (debt-to-income ratio).
- Employer category: listed companies and government service get the best pricing.
- Relationship with the lender: salary account holders are often offered pre-approved rates.
- Loan amount and tenure: larger, shorter loans can price slightly better.
Indicative interest rates
Indicative ranges compiled 28 October 2026. Rates change with the repo rate and your credit profile — always confirm with the lender before deciding.
| Lender | Indicative rate | Typical tenure |
|---|---|---|
| HDFC Bank | 10.50% – 21.00% | 1 – 6 years |
| ICICI Bank | 10.85% – 21.00% | 1 – 6 years |
| SBI | 11.10% – 15.60% | 1 – 7 years |
| Axis Bank | 10.99% – 22.00% | 1 – 7 years |
| Kerala Gramin Bank | 11.00% – 14.50% | 1 – 5 years |
What an extra ₹2,000 a month would do
Same loan, same rate, one extra payment every month. This is the cheapest way to cut the total cost of any loan.
| Scenario | Monthly payment | Loan closes in | Total interest |
|---|
Floating-rate home loans to individuals carry no prepayment penalty in India. Personal and car loans often charge 2–5% of the outstanding amount — check before you prepay.
Year-wise amortisation schedule
How the loan actually unwinds: the interest share falls every year while the principal share rises.
Show the year-by-year break-up
| Year | Principal paid | Interest paid | Balance left |
|---|
Frequently asked questions
What is a good interest rate for a personal loan in India?
For a salaried applicant with a credit score above 750 and a stable employer, anything under 13% is competitive. Public sector banks often quote 11–12%, while non-banking lenders may charge 18% or more for the same profile.
Does a personal loan affect my home loan eligibility?
Yes. Lenders count the personal loan EMI against your monthly obligations, which reduces the home loan you can service. Closing a personal loan before applying for a home loan can raise your eligibility significantly.
Can I prepay a personal loan?
Most lenders allow it after 6–12 EMIs, often with a charge of 2–4% of the outstanding principal. Check the foreclosure clause in the sanction letter before you sign.
Is a personal loan cheaper than a credit card EMI?
Usually yes. A personal loan at 12–14% costs far less than revolving credit card debt at 36–42% a year. Converting card spending to a personal loan is often the cheaper repair.
How much personal loan can I get on my salary?
A common rule is up to 24 times your net monthly salary, subject to the EMI staying within 50% of income after other obligations. Lenders also cap the amount by product, often ₹40–50 lakh.
Do personal loans require collateral?
No. They are unsecured, which is exactly why the rate is higher than a secured loan. No security means the lender prices in more risk.
Related calculators
Before you apply
Get the sanction letter and check three things: whether the rate is fixed or floating, what the processing fee is, and whether part-prepayment carries a charge. Those three lines decide the real cost of the loan, more than the headline rate does.
This page is updated when rate ranges change. Last verified 28 October 2026.