Personal Loan EMI Calculator

Two reasons compound. The rate is typically 14 to 20% against 8.5% for a home loan, and the maximum tenure is five to eight years rather than thirty. A short tenure at a high rate produces a large instalment. That is inherent to unsecured lending — the lender has no security, so it prices the risk and limits its exposure period.

It lowers the monthly commitment but raises total interest considerably. On ₹5 lakh at 14%, three years costs about ₹1.15 lakh in interest while six years costs ₹2.4 lakh. Given that personal loans often carry foreclosure charges, taking a longer tenure with the intention of repaying early can be an expensive plan. Match the tenure to what you can genuinely afford.

Rarely. The interest is usually built into the product price, or charged as an upfront processing fee, or the discount you would otherwise have received is withdrawn. Ask for the total amount repayable and compare it against the cash price. If the totals differ, it is not no-cost.

No. Processing fees of 2 to 4% plus GST are usually deducted from disbursal, so you receive less than you borrowed while paying interest on the full amount. On a ₹5 lakh loan with a 3% fee you receive about ₹4.82 lakh after GST. Your effective rate is meaningfully higher than the quoted one.

Yes, balance transfer is available and can save significantly if your score has improved since you borrowed. Weigh the foreclosure charge on the existing loan and the processing fee on the new one against the interest saved. As a guide, a transfer is worth it if the rate saving exceeds 2% and you have more than half the tenure remaining.