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What is the monthly EMI on a ₹10 lakh personal loan at 12% for 5 years?

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The Answer
₹22,244/month
at 12% p.a. for 5 years

Calculate the exact EMI on a ₹10 lakh personal loan at 12% annual interest for a 5-year tenure, including total interest cost.

By Aditya GuptaAccounting & Finance EducatorLast reviewed May 31, 2026Source: RBI

Why Personal Loan EMI Math Stings

A ₹10 lakh personal loan at 14% interest over 5 years means an EMI of ₹23,268 per month. Total payback is ₹13.96 lakh — you pay back ₹3.96 lakh in interest, roughly 40% on top of the principal. Personal loans are the most expensive form of common consumer credit in India, second only to credit-card revolving balances.

The 14% rate is mid-range — actual personal loan rates run from 10.5% (top-rated salaried at large private banks) to 24% (sub-700 credit score borrowers at NBFCs). Even a 2% rate difference costs ₹50,000-80,000 over a 5-year loan, so shop hard. Check three lenders minimum before signing.

Alternatives almost always beat personal loans for major expenses: a top-up on an existing home loan (8-10%), gold loan (8-12% with the metal as collateral), loan against PF or insurance, or paying down credit card debt with a balance transfer at 0-2%. Personal loans make sense only for genuine emergencies where speed matters more than cost — most other purposes have cheaper alternatives.

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Personal Loan EMI Calculator

Monthly EMI
Total Interest Payable
Total Amount Payable
Visual Breakdown
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How We Calculated This

Loan amount: ₹10,00,000
Interest rate: 12% p.a. (typical unsecured personal loan)
Tenure: 5 years (60 months)
EMI calculated on reducing balance method
No processing fee (typically 1–3% of loan amount) included
Total interest payable: ₹3.35 lakh over 5 years

Frequently Asked Questions

How does personal loan rate compare to credit card?+
Personal loan at 12–16% p.a. is significantly cheaper than credit card rollover at 36–42% p.a. If you have an existing card balance, taking a personal loan to clear it saves substantial interest.
Can I get a ₹10 lakh personal loan without collateral?+
Yes — personal loans are unsecured. Approval depends on your credit score (750+ preferred), monthly income (₹30,000+ for ₹10 lakh), employer type (MNC/listed company preferred), and repayment history.
What’s the effective cost including processing fee?+
A 2% processing fee on ₹10 lakh = ₹20,000 upfront. This raises the effective interest rate to ~12.8%. Always factor in processing fees when comparing loan offers.
Should I choose 3 years or 5 years tenure?+
3-year EMI = ₹33,214/month (higher), but total interest = ₹1.95 lakh. 5-year EMI = ₹22,244/month, total interest = ₹3.35 lakh. Choose shorter tenure if your income comfortably supports the higher EMI.
What happens if I miss an EMI?+
Missed EMI triggers 2–3% penal interest per month on the overdue amount, damages your credit score (visible to all lenders), and may trigger recovery proceedings after 90+ days default.