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Calculate personal loan EMI with credit score-based rates. Compare 6 major banks, check eligibility, analyze DTI ratio & plan prepayments
Fee Amount: $10,000
for 36 months
Excellent
Ideal affordability
| Bank | Rate | EMI | Total |
|---|---|---|---|
Wells Fargo Best | 10.5% | $16,251 | $595,044 |
Bank of America | 10.75% | $16,310 | $599,668 |
Chase Bank | 11% | $16,369 | $596,797 |
Citibank | 11.25% | $16,429 | $601,430 |
US Bank | 10.99% | $16,367 | $601,712 |
Capital One | 10.49% | $16,249 | $599,959 |
Get detailed PDF report with all calculations and amortization schedule
A personal loan is an unsecured loan that allows you to borrow money from banks or financial institutions without pledging any collateral. Unlike home loans or car loans, personal loans don't require you to provide any asset as security. The loan amount is disbursed as a lump sum and must be repaid through fixed monthly installments (EMI) over a predetermined tenure, typically ranging from 1 to 5 years.
Personal loans are versatile and can be used for various purposes including debt consolidation, medical emergencies, wedding expenses, home renovation, education, travel, or any other personal financial need. The interest rates typically range from 10% to 24% per annum, depending on your credit score, income, employment type, and the lender's policies.
| Feature | Personal Loan | Home Loan | Car Loan |
|---|---|---|---|
| Collateral | Not Required | Property | Vehicle |
| Interest Rate | 10-24% | 8-10% | 8-12% |
| Tenure | 1-5 years | 10-30 years | 3-7 years |
| Approval Time | 24-48 hours | 1-2 weeks | 3-7 days |
Choose your credit score range from Excellent (750+), Good (700-749), Fair (650-699), or Poor (<650). This affects your interest rate and approval chances.
Select whether you're Salaried or Self-Employed. This impacts eligibility criteria and interest rates offered by banks.
Input loan amount ($50,000 to $5,000,000), monthly income, interest rate (8-24%), tenure (1-5 years), and processing fee percentage.
Instantly see your monthly EMI, eligibility, DTI ratio, and compare offers from 6 major banks to find the best deal.
Your credit score is one of the most critical factors in determining your personal loan eligibility, interest rate, and loan amount. Here's how different credit score ranges affect your loan:
Debt-to-Income (DTI) ratio is a financial metric that compares your monthly debt obligations to your monthly gross income. It's expressed as a percentage and helps lenders assess your ability to manage monthly payments and repay borrowed money. The formula is:
DTI Ratio = (Total Monthly Debt Payments / Monthly Gross Income) × 100
Ideal affordability. Banks view you as low-risk borrower. Best rates and terms available.
Acceptable range. Loan approval likely but may face slightly higher rates or stricter terms.
Not recommended. High rejection risk. Consider reducing debt or increasing income first.
Different banks offer varying interest rates, processing fees, and terms. Our calculator compares offers from 6 major banks to help you find the best deal:
Higher credit score (750+) gets lower interest rates. Each 50-point increase can reduce rates by 1-2%.
Higher income demonstrates better repayment capacity, leading to preferential rates.
Government employees and MNC workers get better rates than self-employed individuals.
Larger loans and longer tenures may attract slightly higher rates due to increased risk.
Existing customers with good banking history often get pre-approved offers at lower rates.
RBI repo rate changes and overall economic conditions affect lending rates.
Prepayment charges vary by lender and loan type. Here's what you need to know:
| Bank | Prepayment Charges | Lock-in Period |
|---|---|---|
| HDFC Bank | 2-4% of outstanding amount | 12 months |
| ICICI Bank | 3-5% of outstanding amount | 12 months |
| SBI | 3% of outstanding amount | 6 months |
| Axis Bank | 2-5% of outstanding amount | 12 months |
Processing fees are one-time charges levied by banks for processing your loan application. They typically range from 0.5% to 3% of the loan amount, with a minimum and maximum cap.
Typical Range
Minimum Fee
Maximum Fee
A personal loan is an unsecured loan that you can borrow from banks or financial institutions without providing collateral. You receive a lump sum amount and repay it in fixed monthly installments (EMI) over a predetermined tenure, typically 1-5 years. The EMI includes both principal and interest components.
Most banks require a minimum credit score of 650-700 for personal loan approval. However, with a credit score of 750 or above, you can get the best interest rates (starting from 10-11% p.a.) and higher approval chances (95%+). Lower credit scores may result in higher interest rates or loan rejection.
Personal loan EMI is calculated using the formula: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1), where P is the principal amount, r is the monthly interest rate (annual rate/12/100), and n is the number of monthly installments. Our calculator does this automatically.
The maximum personal loan amount depends on your monthly income, credit score, existing obligations, and employment type. Generally, banks offer 10-20 times your monthly salary. Salaried individuals can typically get up to ₹40-50 lakhs ($50,000-$60,000), while self-employed individuals may access higher amounts based on verified income proof and business stability.
Debt-to-Income (DTI) ratio is the percentage of your monthly income that goes toward debt payments. It's calculated as (Monthly EMI / Monthly Income) × 100. Banks prefer DTI below 40-50%. A lower DTI indicates better repayment capacity and increases loan approval chances.
Yes, most banks allow personal loan prepayment. Some banks charge prepayment penalties (typically 2-5% of outstanding amount) if you prepay within the first 12 months. However, many banks now offer zero prepayment charges. Always check terms before taking the loan.
For salaried: Identity proof (Aadhaar/PAN), address proof, last 3 months' salary slips, 6 months' bank statements, and employment proof. For self-employed: Identity/address proof, business proof, ITR for last 2-3 years, bank statements, and business vintage proof.
With digital lending, personal loan approval can happen within 24-48 hours if all documents are in order and you meet eligibility criteria. Some fintech lenders offer instant approval in minutes. Disbursement typically takes 2-7 working days after approval.
Salaried individuals typically get lower interest rates (10-16% p.a.) and faster approval due to stable income. Self-employed individuals may face slightly higher rates (12-18% p.a.) but can access higher loan amounts. Documentation requirements also differ.
Personal loan insurance is optional and adds 0.5-1% to your EMI. It covers loan repayment in case of death, disability, or job loss. Consider it if you're the sole earner or have dependents. However, evaluate if the premium is worth the coverage before opting in.
Salaried employees with stable jobs get preferential rates and faster approval. Self-employed individuals need to show consistent business income for 3+ years. Government employees get the best rates due to job security, while private sector employees are evaluated based on company profile and job stability.
Yes, but options are limited. With scores below 650, you may face higher interest rates (18-24% p.a.), lower loan amounts, and stricter eligibility criteria. Some NBFCs and fintech lenders specialize in loans for lower credit scores. Consider improving your score before applying for better terms.
Expert-Verified Calculations: Our personal loan calculator uses industry-standard EMI formulas verified by financial experts and aligned with RBI guidelines. All interest rate calculations follow the reducing balance method used by major Indian banks.
Data Sources: Interest rates, eligibility criteria, and bank comparisons are regularly updated based on official bank websites, RBI circulars, and CIBIL credit score guidelines. Last updated: December 2024.
Transparency: This calculator provides estimates for educational purposes. Actual loan terms may vary based on individual circumstances, bank policies, and current market conditions. Always verify final terms with your chosen lender.
No Financial Advice: While we provide accurate calculations and information, this tool does not constitute financial advice. Consult with a certified financial advisor for personalized loan recommendations.