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