Personal Loan Calculator

A Personal Loan Calculator is a smart financial planning tool that instantly estimates your monthly repayment amount (EMI) by factoring in your loan amount, chosen interest rate, and repayment period. Instead of crunching numbers manually, it gives you a clear picture of how much you’ll owe each month, helping you balance your expenses, compare loan scenarios, and confidently choose a repayment strategy that fits your lifestyle and income

Personal loans are typically unsecured and can be used for a variety of purposes ranging from wedding expenses to emergency funding making it essential to know your financial obligations before committing.

Using the Personal Loan Calculator is as easy as adjusting a few simple sliders. Just enter:

• The amount you wish to borrow (starting from ₹10,000 and going up to ₹50 lakh or more)
• The interest rate offered by the lender (generally ranges between 7.85% and 14% p.a.)
• The repayment tenure you’re comfortable with (Some lenders may offer even shorter terms, but the common minimum is around 2 years)

Once you fill in these details, the calculator instantly shows you:

• Your estimated EMI (monthly payment)
• The total interest you’ll end up paying
• The overall repayment amount across the loan term

You can adjust variables such as the loan amount, interest rate, or tenure to evaluate multiple repayment scenarios. This enables you to identify a suitable loan structure that aligns with your financial capacity and long-term goals. The calculator offers a streamlined, reliable approach to making well-informed borrowing decisions.

The Personal Loan Calculator uses the standard EMI formula:

EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N – 1]

In this formula:

• P = Loan amount
• R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
• N = Loan tenure in months

Let us see how the formula works with an example:
If you take a ₹5 lakh loan at 12% interest for 3 years, your EMI would be around ₹16,608, with a total interest outgo of ₹96,000.

Using the calculator offers several benefits:

• Quick and accurate EMI calculations
• Helps assess loan affordability
• Allows easy comparison of interest rates and tenures
• Enables better financial planning and budgeting
• Avoids surprises in repayment

• Loan amount – Higher principal leads to higher EMI
• Interest rate – Even a small change impacts overall repayment
• Tenure – Longer tenure reduces EMI but increases total interest
• Processing fee – Some banks charge 1-3% as upfront fees*

* Check the processing fees with the respective bank before applying for a loan.

Eligibility to apply for a personal loan:

• Age: 21–60 years
• Monthly income: ₹15,000 or more (varies by lender)
• Employment: Salaried or self-employed
• Documents: PAN card, Aadhaar card, bank statements, salary slips (or ITRs for self- employed)