Understanding your EMI (Equated Monthly Instalment) is crucial before taking a loan. Below is an example for a loan of ₹5,00,000 at 18% annual interest, across different tenures.
| Loan Amount | Tenure (Years) | Interest Rate | Total Interest Amount | EMI |
|---|---|---|---|---|
₹5 Lakhs |
1 |
18% |
₹50,079.96 |
₹5,50,079.96 |
₹5 Lakhs |
2 |
18% |
₹99,089.22 |
₹5,99,089.22 |
₹5 Lakhs |
3 |
18% |
₹1,50,743.12 |
₹6,50,743.12 |
₹5 Lakhs |
4 |
18% |
₹2,04,999.99 |
₹7,04,999.99 |
₹5 Lakhs |
5 |
18% |
₹2,61,802.82 |
₹7,61,802.82 |
| Term | Definition |
|---|---|
Principal Amount |
The amount borrowed from the lender on which interest is calculated. It represents the actual loan amount sanctioned and disbursed to the borrower, excluding interest charges, processing fees, or other applicable costs. |
Interest Rate |
The fee charged by the lender for borrowing money. It is usually expressed as a percentage of the principal amount and directly influences the EMI amount and the total repayment cost over the loan tenure. |
Tenure |
The period over which the loan is repaid. It begins from the date of loan disbursal and continues until the borrower has repaid the entire outstanding principal and applicable interest. |
Equated Monthly Instalment (EMI) |
A fixed monthly payment made by the borrower to the lender on a specified date. Each EMI consists of both principal and interest components, gradually reducing the outstanding loan balance until the loan is fully repaid. |
Amortisation Schedule |
A detailed repayment table that shows the breakup of every EMI into principal and interest components. It also displays the outstanding loan balance after each payment throughout the tenure. |
Prepayment |
The partial repayment of the loan principal before it becomes due. Prepayments can reduce the outstanding loan amount, which may lower the EMI, reduce the tenure, or decrease the total interest payable, depending on the lender's policy. |
Foreclosure |
The process of repaying the entire outstanding loan amount before the completion of the original tenure. Once the foreclosure amount is paid, the loan account is closed and no further EMIs are payable. |
Total Repayment Cost |
The total amount a borrower pays over the life of the loan. This includes the principal amount, interest charges, and any applicable fees or charges associated with the loan. It reflects the overall cost of borrowing. |
Floating Interest Rate |
A loan interest rate that changes periodically based on a benchmark or reference rate determined by the lender. Changes in the floating rate may increase or decrease the EMI amount or the loan tenure. |
Fixed Interest Rate |
A loan interest rate that remains unchanged for a specified period or throughout the loan tenure, depending on the loan agreement. Since the rate remains constant, the EMI amount generally stays predictable during the fixed-rate period. |
Loan Sanction |
The formal approval of a loan application by the lender after evaluating the borrower's eligibility, credit profile, income, and documentation. The sanction letter typically specifies the approved loan amount, interest rate, tenure, and other key terms. |
Moratorium Period |
A temporary period during the loan tenure during which the borrower is not required to make EMI payments. Interest may continue to accrue during this period, depending on the lender's terms and the type of loan. |
The calculation results are based on the values you enter in the calculator. Your EMI amount (including the actual interest amount charged) will depend on the prevailing rates. The results are neither certified nor guaranteed. The repayment schedule presented is for illustration purposes. Confirm
the values with your lender prior to applying for the personal loan.Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.
The equated monthly instalment (EMI) for a personal loan is the amount you are required to pay each month to service the loan. This consists of the principal and interest components.
Yes, a longer tenure can lower monthly EMIs but increases total interest paid. You can use our EMI calculator for personal loan to evaluate different repayment scenarios.
You can lower EMIs by increasing tenure, improving CIBIL score, or switching lenders. Using a personal loan calculator can help you make an informed decision.
Yes. Depending on the lender’s policies, you may be able to revise the EMI amount and the repayment schedule to fit your needs better.
Depending on the lender’s policies and your requirements, the loan EMI may be revised after you make a prepayment. If not, then, the loan tenure may be reduced, enabling you to close the loan sooner.
No. The EMI calculator only considers the loan amount, interest rate, and tenure. You need to compute the processing fee, prepayment charges, and other charges separately to assess the total repayment cost.
The EMI for a ₹5 Lakh personal loan depends on the applicable interest rate and loan tenure. Since interest rates vary across lenders, the exact EMI will differ. You can use the personal loan EMI calculator by entering the loan amount, interest rate, and tenure to get an instant estimate of your monthly repayment amount.
A 12-month EMI is calculated using the loan amount, monthly interest rate, and a repayment tenure of 12 months. The EMI formula takes into account both the principal and interest components, ensuring the loan is fully repaid by the end of the tenure. An EMI calculator can help determine the exact instalment amount quickly.
A good EMI-to-income ratio is one that allows you to comfortably meet your loan obligations while managing your regular living expenses and financial goals. Keeping EMI commitments at a manageable level can help maintain financial stability and reduce repayment stress.
No, the scheduled EMI amount generally remains unchanged. However, missing a payment may result in late payment charges, penal interest, or additional fees as per the lender's terms and conditions. Repeated missed payments may also affect your credit profile.
For loans offered at a fixed interest rate, the EMI generally remains unchanged throughout the agreed tenure. In the case of floating interest rates, changes in the benchmark rate may lead to a revision in the EMI amount, loan tenure, or both, depending on the lender's policy.
Yes, you can use the EMI calculator before applying for a loan. It helps you estimate monthly repayments, compare different loan amounts and tenures, evaluate affordability, and make informed borrowing decisions before submitting a loan application.