Personal Loan Calculator – India

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is loan amount, R is monthly interest rate, and N is tenure in months. This calculator uses the reducing balance method used by all banks.

Personal loan rates range from 10.5% to 24% (2025). Banks offer 10.5-18% for salaried with good credit. NBFCs may charge 14-24%. Rates depend on credit score, income, employer category, and existing relationship with lender.

Typically 10-24 times monthly salary for salaried individuals, up to ₹40 lakh. Self-employed can get based on income assessment. Actual amount depends on FOIR (existing EMIs should not exceed 40-50% of income), credit score, and employer.

Tenure ranges from 1 to 5 years (some banks offer up to 7 years). Shorter tenure = higher EMI but lower interest cost. Longer tenure = lower EMI but significantly higher total interest. Choose based on affordability and total cost.

Required: PAN card, Aadhaar, Address proof, Salary slips (3 months), Bank statements (6 months), Form 16/ITR, Employer ID. Self-employed need business proof, ITR (2-3 years), and business bank statements.

Yes, most banks allow prepayment/foreclosure. RBI mandates no prepayment penalty on floating rate loans. Fixed rate loans may have 2-5% foreclosure charges. Prepaying saves interest significantly, especially early in tenure.

Credit score is crucial: 750+ gets best rates and quick approval. 700-750 may get approval with higher rates. 650-700 is risky, limited options. Below 650, approval is very difficult. Check and improve score before applying.

Generally no. However, if personal loan is used for home renovation, that portion of interest is deductible under Section 24(b) up to ₹30,000. If used for business, interest can be claimed as business expense.

Personal loan is better for large expenses: Lower interest (10-18% vs 24-42% for credit cards), fixed tenure, structured repayment. Use credit cards only if you can pay full balance within interest-free period.