How to use this personal loan EMI calculator
- Enter the loan amount your lender has sanctioned.
- Enter the interest rate as a yearly rate on a reducing balance, before fees.
- Set the loan tenure and use Tenure in to switch between years and months.
- Open "More options" to set the processing fee as a percentage of the loan; the calculator adds 18% GST on it for you.
- Choose how the processing fee is paid: deducted from the payout, so you receive less than you borrow, or added to the loan.
The result shows your monthly EMI, the effective APR (the effective annual rate, including the fee and GST), the total interest, the processing fee plus GST, the total cost of borrowing, the amount you receive and the total of EMIs, followed by a yearly EMI schedule.
How the EMI and the true cost are worked out
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1) P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of EMIs.
Processing fee + GST = loan amount × fee % × 1.18 The EMI depends only on the loan amount, rate and tenure. The fee changes what you get: when it is deducted, you receive less than you borrow but repay the full amount with interest. The effective APR captures this. It is the yearly rate at which the cash you actually receive equals the EMIs you pay, so it is the fairest single figure for comparing offers.
Worked example
You take a personal loan of ₹5 lakh at 12% for 3 years, with a 2% processing fee deducted from the disbursal. Your EMI is ₹16,607.15, and the 36 EMIs total ₹5,97,858, of which ₹97,858 is interest.
The fee is ₹10,000 and the GST on it ₹1,800, so you receive ₹4,88,200. Your total cost of borrowing is ₹1,09,658, and the effective APR is 13.67%, 1.67 percentage points above the 12% rate.
Personal loan EMI by amount and tenure
At 12% a year over 3 years, with a 2% processing fee plus GST deducted:
| Loan amount | EMI | Total interest | Fee + GST | You receive |
|---|---|---|---|---|
| ₹1 lakh | ₹3,321.43 | ₹19,572 | ₹2,360 | ₹97,640 |
| ₹2 lakh | ₹6,642.86 | ₹39,143 | ₹4,720 | ₹1,95,280 |
| ₹3 lakh | ₹9,964.29 | ₹58,715 | ₹7,080 | ₹2,92,920 |
| ₹5 lakh | ₹16,607.15 | ₹97,858 | ₹11,800 | ₹4,88,200 |
| ₹10 lakh | ₹33,214.31 | ₹1,95,715 | ₹23,600 | ₹9,76,400 |
And ₹5 lakh at 12% over different tenures, with the same 2% fee:
| Tenure | EMI | Total interest | Effective APR |
|---|---|---|---|
| 1 year | ₹44,424.39 | ₹33,093 | 16.56% |
| 2 years | ₹23,536.74 | ₹64,882 | 14.42% |
| 3 years | ₹16,607.15 | ₹97,858 | 13.67% |
| 4 years | ₹13,166.92 | ₹1,32,012 | 13.29% |
| 5 years | ₹11,122.22 | ₹1,67,333 | 13.06% |
A longer tenure spreads the one-off fee over more years, so the effective APR falls, but you pay interest for longer and the total interest keeps rising.
Processing fee and 18% GST
GST at 18% applies to loan processing fees, so the fee you are quoted is not the whole charge. On a ₹5 lakh loan at 12% for 3 years:
| Processing fee | Fee + GST | You receive | Effective APR |
|---|---|---|---|
| 0% | ₹0 | ₹5,00,000 | 12% |
| 1% | ₹5,900 | ₹4,94,100 | 12.83% |
| 2% | ₹11,800 | ₹4,88,200 | 13.67% |
| 3% | ₹17,700 | ₹4,82,300 | 14.53% |
| 4% | ₹23,600 | ₹4,76,400 | 15.4% |
If the fee and GST are added to the loan instead, you receive the full ₹5 lakh but borrow ₹5,11,800, so the EMI rises to ₹16,999.08 and you pay interest on the fee too. To work out GST on other charges, use the GST calculator.
Flat rates, foreclosure and alternatives
Indian loans are repaid in monthly EMIs on a reducing balance, but some personal loans are quoted at a flat rate, which costs much more than the same reducing-balance rate. Ask which one you are being offered; the EMI calculator shows the flat-rate EMI for any loan.
Under RBI rules, lenders cannot charge prepayment or foreclosure fees on floating-rate loans taken by individuals for non-business purposes; fixed-rate loans may carry a charge. Because the processing fee is paid upfront, closing early raises your effective rate: in the example, closing after one year pushes it to 14.93% before any foreclosure charge.
If you have two offers, put them side by side in the loan comparison calculator. If you are borrowing to clear card dues, see what the card is costing you with the credit card interest calculator, and plan several debts together with the debt payoff calculator.
Frequently asked questions
What is the EMI on a ₹5 lakh personal loan?
What is the EMI on a ₹10 lakh personal loan?
Is GST charged on the personal loan processing fee?
What is the effective interest rate on a personal loan?
Can I foreclose a personal loan without charges?
What is the difference between a flat and a reducing rate on a personal loan?
Sources and further reading
Independent, official guidance on this topic. Rules differ by country, so check the regulator where you live.
- Reserve Bank of India: regulations, notifications and consumer awareness · Reserve Bank of India
This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.