Personal Loan EMI Calculator — unsecured loan monthly payment
Calculate personal loan EMI. Unsecured loans typically have 11–18% interest. Full amortisation with total interest shown.
Inputs
Result
Composition
Year-by-year growth
About the Personal EMI Calculator
Personal loans are unsecured instalment loans — no collateral, higher rate, quicker approval (often 24 hours, sometimes minutes for app-based fintech offerings). Used for emergencies, weddings, travel, education, home renovation, or debt consolidation. Indian retail personal loan book has crossed ₹13 lakh crore as of 2026, growing 22% YoY — the fastest segment of bank credit, driven heavily by small-ticket app-based lending.
Tenures: 12–72 months typical. EMIs calculated identically to home/car loans but at higher rates (11–18% at banks, 18–28% at NBFCs and fintechs vs 8–10% for home loans). The rate gap reflects pure credit risk pricing — there's no collateral to recover if you default, so lenders price in expected default rates plus margin.
What affects your rate: CIBIL score (750+ unlocks the best rates, below 650 typically gets rejected or 22%+ rates), employer category (Tier-1 IT companies, MNCs, PSUs, government — preferential rates 0.5–1.5% lower), income level (₹50k+/month in tier-1 cities qualifies for bank rates), existing relationship (your salary account bank usually beats outside lenders by 0.5–1%), and loan amount (₹3L+ tickets get better pricing than ₹50K).
Watch-outs that catch first-time borrowers: (1) Processing fees of 1–3% on loan amount, deducted upfront — your account credit is less than the sanctioned amount. (2) Mandatory insurance pitched by bank (loan protection plan, credit life cover) — usually decline politely; this can add 1.5–4% to effective cost. (3) 'Flat' vs 'reducing balance' interest — always demand reducing balance; flat interest hides 70–80% higher effective rate. (4) Foreclosure penalty — most banks charge 2–5% on outstanding principal for early closure. (5) Prepayment lock-in of 6–12 months at some lenders.
Smart use cases vs misuse: smart use — debt consolidation (replacing 36% credit card debt with 14% personal loan saves significant interest), one-time medical emergency, planned wedding/home renovation with clear repayment plan. Misuse — vacations, gadget purchases, gifts, or topping up daily expenses. Personal loan EMIs cap your future home/car loan eligibility (lenders look at total FOIR), so taking a ₹5L personal loan can effectively delay your home loan by 2–3 years. Always read the Key Facts Statement (KFS — mandatory under RBI's Digital Lending Guidelines from 2023) before signing.