About personal loans
Personal loans are unsecured: you don’t pledge any asset, so lenders charge more and look closely at your credit score and income. Tenures are usually 1 to 5 years, sometimes up to 7.
Personal loan rates in India typically range from about 10.5% to 24% a year, depending on the lender, your credit score and income. Tenures go up to about 7 years. These figures are indicative; always check the latest rate with your lender.
Sample personal loan EMIs
| Loan amount | Rate | Tenure | Monthly EMI | Total interest |
|---|---|---|---|---|
| ₹1,00,000 | 12% | 2 years | ₹4,707 | ₹12,976 |
| ₹2,00,000 | 12% | 3 years | ₹6,643 | ₹39,143 |
| ₹3,00,000 | 12% | 3 years | ₹9,964 | ₹58,715 |
| ₹5,00,000 | 12% | 5 years | ₹11,122 | ₹1,67,333 |
| ₹10,00,000 | 12% | 5 years | ₹22,244 | ₹3,34,667 |
| ₹15,00,000 | 14% | 5 years | ₹34,902 | ₹5,94,143 |
How the EMI is calculated
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Learn more on our main EMI calculator page.
Tax benefits
A personal loan used for personal spending gets no tax benefit. If you use it to buy, build or renovate a house, the interest may qualify under Section 24(b) in the old regime with proper documentation.
Tips to pay less interest
- Compare the APR, not just the rate. Processing fees of 1–3% add to the real cost.
- Borrow only what you need. Interest on unsecured loans adds up fast.
- A credit score above 750 usually gets you noticeably better rates.
- Check foreclosure charges if you plan to repay early.
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