Personal Loan & Car Loan Calculator
EMI, total interest and full repayment for personal loans and car loans — 1 to 7 year tenures
Enter loan details and click Calculate
The real price tag on a 20-year home loan
Borrow ₹50.0L at 8.5% for 20 years and your EMI looks manageable at ₹43,391 per month. But over 240 months, you'll repay a total of ₹1.0Cr — more than double the original loan. The interest alone is ₹54.1L, which is 108% of the principal. On a 30-year tenure at the same rate, interest balloons to ₹88.0L — 176% of what you borrowed.
How common loan types compare
Four strategies that cut your interest bill
Shorten the tenure
Switching from 25 years to 15 years on a ₹40.0L loan at 9% saves ₹29.4L in interest. Your EMI rises from ₹33,500 to ₹40,500 — but the total cost drops by 40%.
Make annual lump-sum prepayments
Even ₹1.0L prepaid once a year on a ₹50.0L home loan can cut your tenure by 5+ years and save ₹15.0L–₹20.0L in interest. Many lenders waive prepayment penalties on variable-rate mortgages — always confirm before signing.
Negotiate your rate after 12 months
Banks rarely offer existing customers the same rates as new borrowers. After one year of perfect repayment, request a rate reduction or explore a refinance. A 0.5% drop on ₹40.0L over 15 years saves ₹4.3L.
Balance transfer to a lower-rate lender
If your current bank won't budge on rates, transfer the outstanding balance to another bank offering a lower rate. Processing fees are typically 0.5–1% of the outstanding amount — compare this against the lifetime interest savings before deciding.
EMI = P × r × (1+r)n ÷ ((1+r)n − 1)
P = principal · r = monthly rate (annual ÷ 12 ÷ 100) · n = total months
Frequently Asked Questions
How is a personal loan EMI different from a home loan EMI?
The formula is identical, but the inputs differ sharply. Personal loans are unsecured, so rates run 10-24% versus 8-9.5% for home loans, and tenures are capped at 5-7 years instead of 20-30. That combination makes the interest portion of each EMI much larger relative to the loan amount — which is why prepaying a personal loan early saves proportionally more.
What interest rate should I expect on a personal loan in India?
Salaried applicants with credit scores above 750 typically see 10.5-14% at major banks. Scores between 650-750 push offers to 14-18%, and NBFC or app-based lenders can charge 18-24% or more. Even a 2% rate difference on a 5-year loan changes total interest by thousands — model both offers in the calculator before signing.
Is a car loan cheaper than a personal loan for buying a car?
Almost always. Car loans are secured against the vehicle, so rates run 8.5-11% versus 10-24% for personal loans. The trade-off: the lender holds the hypothecation until you close the loan, and used-car loans carry 1-3% higher rates than new-car loans.
Should I choose a longer tenure to lower my EMI?
A longer tenure lowers the monthly EMI but raises total interest substantially. On this calculator, compare the same loan at 3 years versus 7 years — the 7-year version can cost 2x or more in total interest. Pick the shortest tenure whose EMI stays under about 40% of your monthly take-home.
Does checking loan offers hurt my credit score?
Soft enquiries (rate-check tools, pre-approved offers) do not affect your score. Hard enquiries — actual applications — each shave a few points and multiple applications in a short window signal credit hunger. Shortlist with a calculator first, then apply to one or two lenders.
Key Terms
Unsecured Loan
A loan with no collateral — approval rests entirely on your income and credit score. Personal loans are unsecured, which is why their rates are higher than home or car loans.
Flat Rate vs Reducing Balance
Some lenders quote a "flat" rate applied to the full original principal every year — a 10% flat rate roughly equals an 18% reducing-balance rate. This calculator uses reducing balance, the honest standard. Always ask which one a quote uses.
Foreclosure Charges
A fee (typically 2-5% of outstanding principal) some lenders charge for closing a personal loan early. RBI bars foreclosure charges on floating-rate loans to individuals — check your sanction letter.
Hypothecation
For car loans, the lender is recorded as a charge-holder on the vehicle RC until the loan closes. Removing hypothecation after closure requires an NOC from the lender and an RTO update.