Personal Loan EMI Calculator
Forecast your monthly loan payment and total cost for emergency or consumer loans.
Repayment Summary
Fixed Monthly EMI
₹0
Total Interest Payable
₹0
Total Loan Cost
₹0
Understanding Personal Loan Costs
The **Personal Loan Calculator** helps users budget for unsecured loans, which are typically used for immediate needs like medical bills, weddings, or emergencies. Since these loans require no collateral, they carry a **higher interest rate** and a **shorter tenure** than secured loans like mortgages.
Loan Payment Calculation (EMI)
The fixed monthly payment (EMI) is calculated using the standard annuity formula: $$E = P \cdot \frac{r \cdot (1+r)^n}{(1+r)^n – 1}$$ Where: $\text{P}$ is the Principal, $\text{r}$ is the Monthly Rate, and $\text{n}$ is the Total Months.
Key Financial Considerations (FAQ)
Why are the interest rates so high?
Personal loans are **unsecured**, meaning the lender has no asset (like a house or car) to recover if you default. This higher risk is compensated by a higher Annual Percentage Rate (APR), often ranging from $10\%$ to over $30\%$, depending on your credit score.
Is there a tax benefit for personal loans in India?
Generally, **no**. Interest paid on a personal loan is usually not tax-deductible unless the loan is specifically used for a tax-deductible purpose, such as funding higher education (covered under Section 80E) or purchasing/constructing a house.