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Omni's personal loan EMI calculator allows you to get an estimate of the equated monthly installments (EMIs) on your personal loan.

Dreaming about taking a vacation in Europe or having a destination wedding, but don't know how to manage the expenses? Worry not! Our personal loan EMI calculator will help you plan your finances so that you can fulfill your dreams without going overboard.

Continue reading to learn what a personal loan is and how to calculate EMI on a personal loan. You will also find a detailed guideline on how to apply for a personal loan and the required CIBIL score for a personal loan.

You may also be interested in checking the bike EMI calculator if you're looking to purchase a 2-wheeler by taking a loan. If you are about to suspend your EMI payments, check our moratorium calculator, where you can check the effect of a moratorium on your repayment. Or you may check our lumpsum calculator if you are more interested in investment.

What is a personal loan?

A personal loan is a financial solution offered by lending institutions to meet your current financial requirements. For example, if you want to take a trip abroad, pay for your wedding expenses, or buy the latest iPhone, you can take a personal loan. You can also avail of a personal loan to meet medical expenses, debt consolidation, or any other personal need.

Personal loans are unsecured, which means that you don't need to pledge any security or collateral to the lender.

The amount you can borrow as a personal loan can vary between Rs. 10,000 to Rs. 40,00,000, and the loan tenure can range between 12 - 60 months. Now that you know what a personal loan is, let's see the formula for calculating it.

How to calculate EMI for a personal loan?

The formula for calculating EMI for a personal loan is:

EMI=P×R×((1+R)N(1+R)N1)\scriptsize EMI = P \times R \times \left ( \frac{(1+R)^N}{(1+R)^N - 1} \right )


  • EMIEMI - Equated monthly installments;

  • PP - Loan amount given to you by the bank;

  • RR - Rate of interest set by the bank (calculated on a monthly basis); and

  • NN - Loan tenure/duration in months.

For example, let us imagine that you want to take a personal loan of Rs. 10 lakh for your Europe trip. We also assume that the interest rate set by your bank is 15% per annum and the loan tenure is 36 months (3 years).

  1. Since we know what the interest rate on a personal loan is, we can calculate the monthly interest rate of your loan:
R=15(12×100)=0.0125\quad \quad \scriptsize R = \frac{15}{(12 \times 100)} = 0.0125
  1. Now, we can find your EMI as:
EMI= Rs. 10,00,000×0.0125×((1+0.0125)36(1+0.0125)361)= Rs. 34,665\quad \quad \scriptsize \begin{split} EMI =\ & \text{Rs.}\ 10,00,000 \times 0.0125 \times \\ & \left ( \frac{(1+ 0.0125)^{36}}{(1+ 0.0125)^{36} - 1} \right )\\ =\ & \rm Rs. \ 34,665 \end{split}
  1. The total payment made by you over the entire loan tenure (36 months) is:
36×34,665=Rs. 12,47,940\quad \quad \scriptsize 36 \times 34,665 = \text{Rs.}\ 12,47,940

This means that you will make a total payment of Rs. 12,47,940 over 3 years on a Rs. 10 lakh loan.

Personal loan EMI chart. How to use the personal loan EMI calculator?

Now let us see how you can use the personal loan EMI calculator to calculate the EMI on your loan. To help you through the steps, we've included the numbers from the example above in brackets.

Personal loan inputs

  1. Enter the loan amount (Rs. 10,00,000) and the loan tenure (3 years).

  2. Input the personal loan interest rate (15%) and processing fee (1.5% of the loan amount) charged by your bank.

  3. You can set the first due date for EMI payment by using the advanced mode.

Payment summary

  1. The personal loan EMI calculator will give you an estimate of your monthly installments (Rs. 34,665), total interest payable (Rs. 2,47,952), and total payment (Rs. 12,62,952) made during the entire loan duration.

  2. In the summary, you will find the calculated annual percentage rate (APR) (16.073%). APR is calculated by taking into account the processing fee charged by your bank. Hence, you can use it to compare the personal loan options offered by different banks.

  3. You can also read a detailed account of your periodic principal and interest payments, as well as the outstanding amount at any point in time. Just use the amortization schedule and a personal loan EMI chart of balances.

Personal loan interest rates

The interest rates on personal loans offered by various financial institutions in India vary between 9 to 36% depending on your credit history, loan tenure, and loan amount.

You can also choose between fixed interest rates and floating (variable) interest rates. Floating interest rates are linked to the marginal cost of lending rate (MCLR) and fluctuate with changes in the MCLR.

What is the interest rate on a personal loan offered by banks? Well, it depends on several other factors, as we will see in the next section.

How to apply for a personal loan?

The application process for a personal loan is fairly easy. You can apply either online or by visiting a branch of the lending institution with documents supporting your identity, address, and income.

Since a personal loan is an unsecured loan, the lending institution takes into account several factors when deciding your loan eligibility and interest rates:

  • Annual income - Your loan repayment capability depends a lot on your income. Hence, if your income is high, the bank may offer you a lower interest rate.

  • Employment status - You have a higher chance of getting a loan approved at a lower interest rate if you have steady employment with a reputed organization. Lenders may offer different rates to self-employed applicants. If you're wondering how to get a personal loan, employment status plays an essential role.

  • Age - If you are close to retirement age, you may be charged a higher rate.

  • CIBIL score - The higher your CIBIL score, the higher your loan amount and lower your interest rates. The minimum CIBIL score for a personal loan is 600.

Once your loan application is approved, the loan amount will be credited to your account.

Things to consider when applying for a personal loan

Knowing what a personal loan is is not enough. Here are some important factors that you should keep in mind when applying for a personal loan:

  • Loan repayment capability - You can use our personal loan EMI calculator to check if you can pay your monthly EMIs.

  • Processing fee - The loan processing fee charged will vary from bank to bank, and it can increase the cost of the loan. Therefore, it is important to compare the processing fee charged by different loan providers.

  • Pre-closure charges - If you are planning to repay your loan before the loan tenure, make sure you check the pre-payment clause and penalties.

  • Loan disbursal time - The loan disbursal time varies from one lender to another (24 hours to 7 business days). So, depending upon the urgency of your need, choose a lender that can sanction your loan in time.

  • Special offers and discounts - Shop around and see if you can get any special offers or discounts.

Personal loan EMI calculator disclaimer

You should consider the personal loan EMI calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are, despite our best effort, not exhaustive.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive helpful feedback and advice.


How to get a personal loan?

To get a personal loan, you can approach a bank or lending institution with documents specifying your address, identity, and proof of income.

Based on your credit score and loan repayment capability the lending institution will approve your loan and the fund will be remitted to your account.

What is the interest rate on a personal loan?

The interest rate on a personal loan varies across financial institutions. In India, it varies from 9.65 to 30% per annum.

If your CIBIL score is high you will get the loan at a lower interest rate.

How much CIBIL score is required for personal loan?

To get your personal loan application approved you need a CIBIL score of 750 and above.

If your CIBIL score is between 600 and 750, your loan may be approved but you will have to pay a higher interest rate.

How to close a personal loan early?

You can close your personal loan early by paying the outstanding loan balance. However, you should check if your lending institution charges a pre-closure fee.

Is a personal loan secured or unsecured?

A personal loan is an unsecured loan. This means that when you take a personal loan, you don't need to pledge any collateral. The lender approves your loan based on your creditworthiness.

What documents are required for personal loan?

To get a personal loan, you need to submit the following documents to the lending institution:

  • Proof of identity and address;
  • The previous 3 months bank statements; and
  • Latest salary slip and income tax return.

What happens if a personal loan EMI is not paid?

If you default on your personal loan EMI payment, it will affect your credit history and your CIBIL score. Consequently, you may not be able to secure loans in the future.

You may also have to pay additional interest and penalty charges if you delay your EMI payments, resulting in a higher total payment.

How to reduce EMI of existing personal loan?

To reduce the EMI of an existing personal loan, you may follow these suggestions:

  • Prepay a part of your loan - It will reduce the outstanding principal and in turn your EMI.
  • Increase the tenure of your loan - This will reduce your EMI, but due to longer tenure your loan will be more expensive.
Tibor Pál, PhD candidate and Purnima Singh, PhD
Personal loan inputs
Loan amount
Interest rate
Processing fee percentage
Processing fee
Payment summary
chart of balances
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Equated Monthly Installment (EMI)$34,665.33
Annual Percentage Rate (APR)16.073%
Loan term3 years
Loan principal$1,000,000.00
Total interest payable$247,951.83
Loan fees$15,000.00
Total payments$1,262,951.83