Key Takeaway
Personal loan interest rates in India range from 10.5% to 24% depending on credit score, income, and lender. A ₹5 lakh personal loan at 12% for 5 years costs ₹11,122/month in EMI.
Repayment Amortization Schedule
| Month | Principal | Interest | Balance |
|---|---|---|---|
| Month 1 | ₹7,126 | ₹2,625 | ₹2,92,874 |
| Month 2 | ₹7,188 | ₹2,563 | ₹2,85,686 |
| Month 3 | ₹7,251 | ₹2,500 | ₹2,78,435 |
| Month 4 | ₹7,314 | ₹2,436 | ₹2,71,121 |
| Month 5 | ₹7,378 | ₹2,372 | ₹2,63,742 |
| Month 6 | ₹7,443 | ₹2,308 | ₹2,56,299 |
| Month 7 | ₹7,508 | ₹2,243 | ₹2,48,791 |
| Month 8 | ₹7,574 | ₹2,177 | ₹2,41,217 |
| Month 9 | ₹7,640 | ₹2,111 | ₹2,33,577 |
| Month 10 | ₹7,707 | ₹2,044 | ₹2,25,870 |
| Month 11 | ₹7,774 | ₹1,976 | ₹2,18,096 |
| Month 12 | ₹7,842 | ₹1,908 | ₹2,10,254 |
| showing first 12 months (full amortization schedule calculated) | |||
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Frequently Asked Questions
What is a personal loan EMI?
EMI stands for Equated Monthly Installment. It is a fixed monthly payment consisting of principal repayment and interest charges, paid to clear a loan over a set tenure.
How is personal loan EMI calculated?
Personal loan EMIs are calculated on a reducing balance basis. The formula is: EMI = [P * r * (1 + r)^n] / [((1 + r)^n) - 1], where P is Principal, r is monthly interest rate, and n is tenure in months.
Can I prepay my personal loan?
Yes. Most banks allow prepayment or part-payment after 12 EMIs have been paid. Some banks charge a foreclosure fee of 2-4% on the outstanding principal amount.
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