Enter your loan amount, interest rate, and tenure. The calculator shows your monthly EMI, total interest paid, processing fee, and the true total cost of the loan — so you can compare offers across banks before you apply.
Current personal loan interest rates (April 2026)
| Lender | Interest rate | Processing fee | Notes |
|---|---|---|---|
| SBI Xpress Credit | 11.15–14.00% | Up to 1.5% | For salaried, low rate for 750+ CIBIL |
| HDFC Bank | 10.75–24.00% | Up to 2.5% | Pre-approved offers go as low as 10.5% |
| ICICI Bank | 10.75–19.00% | Up to 2.5% | |
| Axis Bank | 11.25–22.00% | 1.5–2% | |
| Kotak Mahindra | 10.99–24.00% | Up to 3% | |
| Bajaj Finance | 13.00–26.00% | Up to 3.93% | High approval rate, higher rate |
| IndusInd Bank | 10.49–26.00% | Up to 3.5% |
The range is wide — your actual rate depends on CIBIL score, employer category, and existing banking relationship.
How EMI is calculated
The standard reducing-balance EMI formula:
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
Where P = loan principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months.
Example: ₹5 lakh personal loan at 12%, 36 months
| Metric | Value |
|---|---|
| Monthly EMI | ₹16,607 |
| Total payment | ₹5,97,852 |
| Total interest | ₹97,852 |
| Processing fee (1%) | ₹5,000 |
| True total cost | ₹6,02,852 |
How tenure affects EMI and total interest
Same ₹5 lakh loan at 12%:
| Tenure | Monthly EMI | Total interest | You save (vs 5 yr) |
|---|---|---|---|
| 12 months | ₹44,424 | ₹32,887 | ₹1,31,489 |
| 24 months | ₹23,537 | ₹64,888 | ₹99,488 |
| 36 months | ₹16,607 | ₹97,852 | ₹66,524 |
| 60 months | ₹11,122 | ₹1,67,320 | — |
Every extra year you stretch the loan adds roughly ₹33,000 in interest on a ₹5 lakh loan. Shorter tenure = higher EMI but significantly lower total cost.
What banks actually check before approving
CIBIL score: The single biggest factor. Below 700 = likely rejection. 700–750 = approved at higher rate. 750+ = best rates. A 1% rate difference on ₹5 lakh over 3 years = ~₹7,700 extra.
FOIR (Fixed Obligations to Income Ratio): Total EMIs (including this new loan) should not exceed 40–50% of net monthly income. On ₹50,000 net monthly, total EMIs ≤ ₹25,000.
Employer category: PSU, MNC, or listed company = lower rate. Private small firm or self-employed = higher rate or additional documents.
Existing relationship: Salary account at the lender typically gets pre-approved offers at 0.5–1% lower rates.
Processing fee — the hidden cost
Most banks charge 1–3% of the loan amount upfront, deducted before disbursal. On a ₹5 lakh loan with 2% fee, you receive ₹4.9 lakh but repay ₹5 lakh + interest.
Always factor this into your effective cost. A bank offering 12% with 0.5% fee may be cheaper than one offering 11.5% with 3% fee.
Should you prepay your personal loan?
RBI mandates no prepayment penalty on floating-rate loans. Most personal loans are fixed-rate — banks typically charge 2–4% prepayment penalty.
If you have surplus cash:
- Check if prepayment penalty < interest saved
- At 12% rate, every ₹1 lakh prepaid in year 1 saves ~₹18,000 in interest over 3 years
- Most banks allow partial prepayment after 6 EMIs; some require 12 months first
Frequently asked questions
What is the minimum CIBIL score for a personal loan?
Most major banks require a minimum of 700. HDFC and ICICI typically want 750+. NBFCs and fintech lenders (Bajaj, MoneyTap, KreditBee) approve lower scores but at 20–26% interest rates.
Can I get a personal loan without salary slips?
No for bank loans — 3 months salary slips + 6 months bank statement is standard. For self-employed: 2 years ITR + bank statement. Some fintechs use alternative data (GST returns, account aggregator) but these come with higher rates.
How is a personal loan different from a top-up home loan?
Top-up home loan rate: 8.5–9.5%. Personal loan rate: 11–24%. If you have an existing home loan, a top-up is almost always cheaper than a personal loan for the same purpose.
Does a personal loan affect CIBIL score?
Applying affects it slightly (hard inquiry). Taking and repaying on time improves your score. Missing even one EMI drops your score by 50–80 points. Closed personal loans in good standing are positive marks on your report.
Sources
- RBI Master Circular on Interest Rates (personal credit)
- SBI, HDFC, ICICI, Axis Bank personal loan rate cards (April 2026)
- CIBIL TransUnion Score methodology documentation