Personal Loan EMI Calculator

Find your personal loan EMI, the processing fee with 18% GST, the amount you actually receive and the true annual cost (APR) of the loan.

Loan amount (₹)

Interest rate (% p.a., reducing)

Tenure

Tenure unit

Processing fee (% of loan)

GST on processing fee

Monthly EMI

Total interest

Total EMIs paid

Fee + GST

Net disbursal

APR (true annual rate)

Effective annual rate

Principal Interest Fee + GST

Repayment schedule (click a year to see months)

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What is a personal loan EMI calculator?

A personal loan EMI calculator shows the fixed monthly instalment for an unsecured personal loan, together with everything the headline interest rate leaves out. Lenders in India usually deduct a processing fee — plus 18% GST on that fee — from the amount they disburse, but you still repay EMIs on the full sanctioned amount. This personal loan EMI calculator shows the EMI, the total interest, the fee and GST, the net amount that reaches your bank account, and the APR: the true annual rate once the fee is included. It also produces a year-by-year schedule that expands into months and can be downloaded as a CSV file.

How to use the calculator

Enter the loan amount sanctioned by the bank or NBFC.
Enter the interest rate quoted on a reducing-balance basis.
Enter the tenure in years or months (up to 120 months).
Enter the processing fee as a percentage of the loan and choose whether 18% GST is added on top (most sanction letters quote the fee “plus GST”).
Compare the APR across offers — a lower interest rate with a high fee can cost more than a slightly higher rate with no fee.

How the EMI and APR are calculated

EMI uses the standard reducing-balance formula: EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1], where r is the annual rate ÷ 1200 and n is the number of months.

Processing fee and GST: fee = loan × fee %; GST = fee × 18%; net disbursal = loan − fee − GST.

APR is the internal rate of return (IRR) of the actual cash flows: you receive the net disbursal today and pay n EMIs. The calculator finds the monthly rate i for which net disbursal = EMI × [1 − (1 + i)⁻ⁿ] / i using Newton’s method with a bisection fallback, then reports APR = i × 12 (comparable with the quoted rate) and the effective annual rate = (1 + i)¹² − 1.

Worked example (default values): ₹5,00,000 at 12% for 3 years with a 2% fee plus GST.

EMI = ₹16,607; 36 EMIs total ₹5,97,858, so interest = ₹97,858.
Processing fee = ₹10,000; GST = ₹1,800; net disbursal = ₹4,88,200.
The monthly IRR of receiving ₹4,88,200 and paying 36 × ₹16,607 is about 1.1391%, so the APR is 13.67% and the effective annual rate is 14.56% — noticeably more than the 12% headline.

The total cost of borrowing in this example is ₹1,09,658 (interest plus fee plus GST).

Why the APR matters

Two offers can look similar on the interest rate alone. Because the fee is paid up front, its effect on the APR is largest on short loans: the same 2% fee adds more to the annual cost of a 1-year loan than of a 5-year loan. The RBI requires regulated lenders to give borrowers a Key Fact Statement (KFS) for retail and MSME loans that states the APR including fees, so you can cross-check this calculator against the KFS in your loan offer.

Tips to lower the cost of a personal loan

Ask for a processing-fee waiver or a flat fee cap, especially if you have a salary account with the lender.
Pick the shortest tenure whose EMI you can comfortably afford; interest falls sharply as tenure shortens.
Check foreclosure and part-payment charges before signing — many lenders allow free foreclosure only after a lock-in period.
Avoid optional insurance or add-ons being financed into the loan without your consent; they raise the effective cost.
A good credit score (generally 750+) helps you get a lower rate.

Limitations and notes

The calculator assumes a fixed rate and equal EMIs, with the first EMI one month after disbursal. Lenders that charge broken-period interest for the days between disbursal and the first EMI date, or that collect advance EMIs, will have a slightly higher APR. Stamp duty, insurance and other charges are not included. Personal loans used for personal expenses carry no income-tax deduction; if a personal loan is used to buy or build a house, interest may qualify under Section 24(b), and if used for business, interest may be a business expense.

Frequently Asked Questions

What is the EMI for a ₹5 lakh personal loan at 12% for 3 years?

About ₹16,607 per month. Total interest over 36 months is about ₹97,858.

Is GST charged on a personal loan processing fee?

Yes. The processing fee is a service charge, so GST at 18% is added to it. A 2% fee on ₹5 lakh is ₹10,000 plus ₹1,800 GST, and the total of ₹11,800 is usually deducted from the amount disbursed.

What is APR on a personal loan?

APR (annual percentage rate) is the true yearly cost of the loan including the processing fee and GST. It is calculated as the internal rate of return of the amount you actually receive and the EMIs you pay. A 12% loan with a 2% fee plus GST over 3 years has an APR of about 13.67%.

Why is the amount credited to my account less than the loan amount?

Most lenders deduct the processing fee, GST and sometimes stamp duty or insurance premiums from the sanctioned amount before disbursal. You still repay EMIs on the full sanctioned amount, which is why the APR is higher than the quoted rate.

Does a longer tenure reduce the cost of a personal loan?

A longer tenure lowers the EMI but increases the total interest you pay. It can lower the APR slightly because the up-front fee is spread over more years, but the rupee cost of the loan still rises.

Can I prepay a personal loan?

Most lenders allow foreclosure or part-payment, often after a lock-in period and sometimes with a charge. Check the Key Fact Statement and loan agreement for the exact terms.

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