Personal Loan EMI Calculator
Calculate monthly EMI for personal loans. Compare rates across banks and understand total interest cost before borrowing.
Personal Loan Rates by CIBIL Score (2026)
Personal loans are unsecured - no collateral required. This makes them faster to disburse (often within 24 hours) but also more expensive than secured loans. Your CIBIL score is the single most important factor in determining your interest rate.
| CIBIL Score | Typical Rate | Likely Lenders |
|---|---|---|
| 750 and above | 10.5% – 12% | All major banks (SBI, HDFC, ICICI, Axis) |
| 700 – 749 | 13% – 16% | Most banks; some NBFCs |
| 650 – 699 | 16% – 22% | NBFCs, digital lenders (Bajaj, MoneyView) |
| Below 650 | 24% – 36% | High-risk lenders only - avoid if possible |
When Does a Personal Loan Make Sense?
Good Use Cases ✓
- Medical emergency - faster than insurance reimbursement
- Consolidating credit card debt at 24–42% into a 12% loan
- Home renovation that increases property value
- Wedding expenses when no liquid savings remain
- Bridge loan while waiting for a fixed deposit to mature
Avoid If Possible ✗
- Buying depreciating assets - use asset-specific loans at lower rates
- Investing in stocks or crypto - EMI obligation + market risk is dangerous
- Vacation or lifestyle spending - save first, spend later
- Stacking loans when existing EMIs already exceed 40% of income
Personal Loan vs Credit Card: Cost Comparison
For a ₹50,000 expense repaid over 12 months - the difference in total cost is stark:
| Factor | Personal Loan (12% p.a.) | Credit Card Revolving (42% p.a.) |
|---|---|---|
| Monthly Payment | ₹4,442 (fixed EMI) | ₹5,000+ (minimum barely covers interest) |
| Total Interest (12 months) | ₹3,304 | ₹21,000+ |
| Discipline Required | EMI auto-debited | Manual payment - easy to miss |
| Credit Score Impact | Positive (on-time EMIs) | Negative if revolving balance grows |
Hidden costs to check: Processing fee (1–3% of loan amount), GST on fees (18%), prepayment charge (2–5% for fixed-rate loans), and any insurance add-ons the bank bundles - always ask for these to be itemised before signing.
Frequently Asked Questions
What is the interest rate on personal loans in India?
Personal loan interest rates in India range from 10.5% to 24% depending on your credit score, income, and the lender. Banks like SBI and HDFC offer rates from 10.5-14%, while NBFCs may charge 15-24%.
What is the maximum tenure for a personal loan?
Personal loans typically have a tenure of 1 to 5 years (12 to 60 months). Some banks offer up to 7 years for high-value loans. Shorter tenures mean higher EMI but lower total interest.
Should I take a personal loan or use a credit card?
Personal loans charge 10-18% interest, while credit cards charge 24-42% on revolving balance. For amounts above ₹50,000, a personal loan is almost always cheaper than carrying a credit card balance.
Can I prepay a personal loan?
Yes. RBI mandates no prepayment charges on floating-rate loans. For fixed-rate personal loans, banks may charge 2-5% foreclosure fee. Always check with your lender before prepaying.