Personal loans are usually unsecured and carry higher interest rates than secured loans. The calculator converts your annual rate to a monthly rate and applies the reducing-balance EMI formula over the number of months.

The total amount payable is EMI × number of months; total interest is that figure minus the loan amount.

Given: Loan ₹5,00,000, rate 12% p.a., tenure 3 years (36 months)

Monthly rate r = 12 / 12 / 100 = 0.01

(1+r)³⁶ = 1.4308

EMI = 5,00,000 × 0.01 × 1.4308 / (1.4308 − 1) ≈ ₹16,607

Total payable ≈ ₹5,97,852  ·  Total interest ≈ ₹97,852

• Personal loan rates typically range from about 10% to 24% p.a. depending on lender, credit profile and income.
• Uses a fixed rate and reducing-balance method; some lenders use flat-rate quoting which gives a different effective cost.
• Processing fees, GST and prepayment/foreclosure charges are not included.
• Shorter tenures raise the EMI but sharply reduce total interest.

Are personal loan rates fixed?
Usually yes for the tenure, but always confirm with your lender as some offer floating rates.

What affects my rate?
Credit score, income, employer, existing obligations and loan amount all influence the offered rate.

Can I prepay?
Often yes, sometimes with a foreclosure charge. Prepayment reduces total interest.