Personal Loan Calculator
Calculate EMI for an unsecured personal loan.
Breakdown
Monthly EMI
₹11,122
Total Interest
₹1,67,333
Total Payment
₹6,67,333
Schedule
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 1 | ₹77,645 | ₹55,822 | ₹4,22,355 |
| 2 | ₹87,492 | ₹45,974 | ₹3,34,862 |
| 3 | ₹98,589 | ₹34,878 | ₹2,36,274 |
| 4 | ₹1,11,092 | ₹22,374 | ₹1,25,181 |
| 5 | ₹1,25,181 | ₹8,285 | ₹0 |
What is Personal Loan?
A Personal Loan is an unsecured loan provided by banks or financial institutions to meet personal financial needs such as medical expenses, travel, education, home renovation, or other emergencies. Since these loans typically do not require collateral, they usually come with higher interest rates compared to secured loans.
Personal loans are repaid through fixed monthly EMIs over a selected tenure, usually ranging from 1 to 5 years.
How Personal Loan Works
Personal loans generally follow a reducing balance interest calculation. Interest is charged only on the remaining outstanding principal.
Each EMI consists of two parts: interest and principal repayment. As the loan progresses and the principal decreases, the interest portion gradually reduces while the principal portion increases.
No Collateral
Unsecured loan without any asset pledged
Reducing Balance
Interest calculated on remaining outstanding principal
Fixed EMI
Same monthly payment throughout the tenure
Higher Interest
Rates generally higher than secured loans
Calculation Method
Formula:
Where:
- P = Loan principal (amount borrowed)
- i = Monthly interest rate
- N = Total number of monthly installments
Assumptions:
- ✓ Reducing balance interest
- ✓ Fixed interest rate
- ✓ 12–60 month tenure
Key Benefits
No Collateral
Avail loans without pledging any assets
Quick Disbursement
Fast approval and disbursement process
Flexible Usage
Use funds for any personal financial need
Fixed EMI
Predictable monthly payments for easy budgeting
Important Disclaimer
This information is for educational purposes only and not financial advice. Interest rates, loan limits, processing fees, and repayment terms vary between lenders.
Always review the official loan terms and conditions before applying for a personal loan.