Personal Loan EMI Calculator

EMI = [P x r x (1+r)^n] / [(1+r)^n - 1], where P is the principal, r the monthly interest rate and n the tenure in months. The instalment stays fixed while the split between interest and principal shifts over time.

No. A longer tenure lowers the monthly EMI but raises total interest substantially, because the outstanding principal is reduced more slowly. The amortisation table below shows exactly how much extra interest a longer term costs.

A prepayment reduces the outstanding principal directly, so every future interest calculation works on a smaller base. Prepaying early in the tenure saves far more than the same amount prepaid near the end.

There is no collateral, so the lender has nothing to recover against if you default. That risk is priced into the rate, which is why personal loans typically cost several percentage points more than a secured home or car loan.

It is a one-off charge, commonly 1-3% of the loan, usually deducted before disbursal. It does not change the EMI but it does raise your effective borrowing cost, because you receive less than the sanctioned amount.

Many lenders charge a foreclosure fee, particularly within the first year. Check the sanction letter before planning a prepayment, and compare the penalty against the interest you would save by closing early.

Applying triggers a hard enquiry, which dips the score slightly. Consistent on-time repayment then improves it, since it demonstrates unsecured credit discipline. Missed instalments damage the score considerably more than the enquiry did.