What interest rate do Indian personal loans charge?

Unsecured personal loans from banks typically range from about 10% to 24% per annum, depending on your credit score, income and the lender. NBFC and app-based loans can be higher. A higher CIBIL score generally earns a lower rate.

Should I watch for flat vs reducing-balance rates?

Yes. A reducing-balance rate (what this tool uses) charges interest only on the outstanding balance, so it is cheaper than a flat rate quoting the same number. A 'flat' rate applies interest to the whole principal for the full tenure, making the effective cost roughly double — always confirm which one is quoted.

Do not forget the processing fee?

Most lenders charge a one-off processing fee of around 1–3% of the loan, often deducted upfront, plus GST. This is not part of the EMI but raises your effective cost. Compare the APR (which includes fees) rather than the headline rate alone.

Does this calculator store my data?

No. Everything is computed locally in your browser and nothing is uploaded, so you can model your loan privately.

India Personal Loan Calculator

Q: How is a personal loan EMI calculated in India?

Indian personal loans use the reducing-balance EMI formula 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. Each EMI is part interest on the outstanding balance and part principal, so interest falls over the tenure.

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This India personal loan calculator models an unsecured personal loan the way an Indian bank or NBFC does — a fixed reducing-balance EMI over the tenure you choose, at typical market rates of 10–24% per annum. It shows the monthly EMI, the total interest you will pay, and a full month-by-month amortisation schedule.

How it works

The EMI uses the standard reducing-balance annuity formula:

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. When the rate is 0, the EMI is simply P ÷ n. Each instalment is split into interest on the current outstanding balance and principal repayment; as the balance falls, the interest portion shrinks and more of each EMI clears principal.

Example

A ₹5,00,000 loan at 14% over 48 months gives an EMI of about ₹13,663, with total interest near ₹1,55,800 and ₹6,55,800 repaid in all. Shortening the tenure raises the EMI but cuts total interest; lengthening it does the opposite.

Notes

This uses a reducing-balance rate — confirm your lender is not quoting a cheaper-looking flat rate, which costs roughly double for the same number. A one-off processing fee (around 1–3% plus GST) is not part of the EMI but raises your effective APR. Compare lenders on APR, not the headline rate alone. This is an estimate, not a loan offer.