Find your monthly EMI, total interest payable, and total
Personal Loan cost in seconds.
Monthly EMI
тВ╣0
Pay this every month
Total Interest
тВ╣0
Extra paid over principal
Total Payment
тВ╣0
Principal + Interest
Year-wise outstanding balance vs principal repaid.
Breakup: Principal vs Interest.
What is Personal Loan
A personal loan is a type of unsecured credit that individuals borrow from banks, NBFCs, or online lenders to meet personal or emergency expenses. Unlike home or car loans, it does not require any collateral or security.
You can use a personal loan for almost any legitimate purposeтАФmedical bills, weddings, education, travel, home renovation, or debt consolidation. The borrower repays the loan in fixed monthly instalments (EMIs) over a pre-agreed tenure, usually ranging from 12 to 60 months.
The EMI amount depends on three key factors:
Loan amount (principal) тАУ the total money borrowed
Interest rate тАУ the annual rate charged by the lender
Tenure тАУ the duration over which the loan will be repaid
Because personal loans are unsecured, lenders evaluate your creditworthiness based on your income, employment history, and credit score (CIBIL score). A higher score and stable income usually result in better approval chances and lower interest rates.
In short, a personal loan is a quick, flexible, and convenient financing option that helps individuals manage planned or unexpected expenses without pledging assets.
What is Personal Loan EMI
A Personal Loan EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your personal loan within the chosen tenure. Each EMI includes two components тАФ principal repayment and interest тАФ and remains constant throughout the loan period. In the early months, a larger portion of your EMI goes toward interest, while in later months, more of it covers the principal. Understanding your EMI helps you plan your monthly budget efficiently and ensures you borrow within your repayment capacity.
What is a Personal Loan EMI Calculator?
A Personal Loan EMI Calculator is an online tool that estimates the monthly instalment amount you must pay based on the loan amount, interest rate, and tenure. It instantly shows the EMI, total interest payable, and total repayment amount, removing the need for complex manual calculations. By adjusting these three inputs, you can visualize how different loan terms or interest rates affect your repayment schedule and make more informed borrowing decisions.
How can a Personal Loan EMI Calculator Help You?
A Personal Loan EMI Calculator is a vital planning tool for every borrower. It helps you:
Estimate repayment obligations: Know your exact EMI before applying for a loan.
Compare loan offers: Evaluate multiple banks or NBFCs by changing the rate or tenure.
Manage your budget: Align EMI payments with your monthly income to avoid financial stress.
Save on interest: Identify the optimal tenure that minimizes interest outflow while keeping EMIs affordable.
Plan prepayments: Assess how part-payments or early closures could affect your total savings.
Using a calculator ensures transparency, helps prevent over-borrowing, and enables confident financial planning.
How Does a Personal Loan EMI Calculator Work?
The calculator uses the standard EMI formula used by banks and financial institutions:
Formula
Explanation
EMI = [P ├Ч r ├Ч (1 + r)тБ┐] / [(1 + r)тБ┐ тАУ 1]
P = Loan Amount, r = Monthly Interest Rate (Annual Rate ├╖ 12 ├╖ 100), n = Total Months (Tenure in Years ├Ч 12)*
So, if you borrow тВ╣5 lakh at 12% for 3 years, your monthly EMI will be about тВ╣16,607, and youтАЩll pay approximately тВ╣97,852 in total interest.
How to Use Business Day Personal Loan EMI Calculator
Enter Loan Amount: Input how much you plan to borrow.
Add Interest Rate: Specify the annual interest rate offered by your lender.
Select Loan Tenure: Choose the duration of the loan in years.
Click тАЬCalculate EMIтАЭ: Instantly view your monthly EMI, total interest payable, and total loan cost.
Experiment Freely: Modify any field to see how rate or tenure changes affect your repayment.
The Business Day Personal Loan EMI Calculator provides real-time, accurate, and visually clear results, including line and donut charts to help you understand your payment structure better.
Advantages of Using Business Day Personal Loan EMI Calculator
Accuracy: Eliminates manual errors by using the exact mathematical formula employed by financial institutions.
Speed: Generates results instantly with a single click.
Clarity: Offers a transparent breakdown of EMI, total interest, and total repayment amount.
Financial Planning: Helps you choose a comfortable EMI based on your income and commitments.
Decision Support: Enables you to compare multiple loan options and negotiate better deals.
User-Friendly: Intuitive design, mobile-responsive layout, and red-white professional interface make it easy for everyone to use.
The Business Day Personal Loan EMI Calculator is not just a number-crunching tool тАФ itтАЩs a complete financial planning companion that helps borrowers make informed, confident, and responsible credit decisions.
Personal Loan Calculator FAQs
Does personal loan require collateral?
Generally, personal loans are unsecured, which means you do not need to provide any collateral or security like property, gold, or fixed deposits. However, lenders may still check your income, job stability, and credit score before approving the loan.
Does the EMI amount remain fixed throughout the loan tenure?
Yes, in most personal loans with a fixed interest rate, the EMI remains the same throughout the tenure. Your EMI is calculated at the time of loan disbursal and stays constant unless you restructure the loan, make a part-prepayment, or the lender changes the rate in a floating-rate product.
How can I avail a personal loan with low interest rates?
You can improve your chances of getting a lower interest rate by maintaining a high credit/CIBIL score (usually 750+), having a stable income, choosing a shorter tenure, keeping your existing EMIs low, and applying with a bank/NBFC where you already have a relationship or salary account.
What is a Personal Loan?
A personal loan is an unsecured loan offered by banks and NBFCs to meet personal or emergency expenses such as medical bills, travel, weddings, education, or debt consolidation. You repay it in fixed monthly instalments over a predefined tenure.
What are the common uses of a Personal Loan?
Common uses include medical expenses, marriage expenses, home interiors, education, travel, buying gadgets, paying rent deposits, or consolidating multiple high-cost debts into a single EMI. Since it is a no-end-use loan, you usually do not have to declare the exact purpose.
How does a Personal Loan work?
The lender disburses the approved loan amount to your bank account. You repay it through EMIs every month, where each EMI consists of principal plus interest. The EMI is calculated using the standard EMI formula based on loan amount, interest rate, and tenure.
When should I opt for a Personal Loan?
You should consider a personal loan when you need funds quickly, do not want to liquidate investments, do not have collateral to pledge, or want to consolidate multiple loans. It is also useful for time-bound expenses such as weddings or medical situations.
What is the maximum Personal Loan amount that I can avail?
The maximum loan amount depends on your income, existing EMIs, employer category, credit score, and the lenderтАЩs internal policy. Salaried customers in metro cities can often get from тВ╣50,000 up to тВ╣25тАУ30 lakh; self-employed borrowers may have different limits.
How much time does it take to get a loan application approved?
For pre-approved or existing bank customers, approval can be instant or within a few hours. For fresh customers, it may take 24тАУ48 hours after KYC, income verification, and credit check. In some cases, it can take 2тАУ3 working days if documents are incomplete.
What are the advantages of applying for a personal loan online?
Applying online is faster, paperless, and convenient. You can compare interest rates, check eligibility, upload documents, and sometimes even get instant approval without visiting a branch. It also reduces processing time and gives you better transparency on charges.
How does a good CIBIL score help me avail a personal loan easily?
A good CIBIL score shows that you have a strong repayment history. Lenders see you as a low-risk borrower, which increases your approval chances and can also help you negotiate a lower interest rate or higher loan amount.
Are there any tax benefits associated with personal loans?
Personal loans do not automatically give tax benefits like home loans. However, if you can prove that the loan was used for a house renovation, business purpose, or asset purchase, you may be able to claim tax deductions under specific sections тАФ subject to documentation and current tax rules.
What is the tenure for which I can get a personal loan?
Personal loan tenures generally range from 12 months to 60 months. Some lenders offer shorter or longer tenures depending on the customer profile. A longer tenure reduces EMI but increases total interest paid.
How do I repay the personal loan?
Repayment is usually done through EMIs via ECS, NACH, or auto-debit from your bank account on a fixed date every month. You can also prepay or foreclose the loan, but some lenders may charge a small prepayment or foreclosure fee.
Which documents are necessary when applying for a personal loan?
Typically you will need KYC documents (PAN, Aadhaar), address proof, recent salary slips or ITRs, bank statements for the last 3тАУ6 months, and sometimes employment proof. Exact requirements vary by lender and employment type.
How much time does it typically require for approval of a personal loan?
If all documents are in order and your credit profile is strong, most digital lenders approve within the same day. For manual verification or first-time borrowers, it may take 1тАУ3 business days.
How does a personal loan differ from a business loan?
A personal loan is borrowed in an individualтАЩs name and is based on personal income, credit score, and employment. A business loan is taken for business purposes and is assessed on business turnover, financial statements, and cash flows. Interest rates, eligibility, and documentation are also different.