Question 1

How is Personal Loan EMI calculated?

Accepted Answer

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the loan principal, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the tenure in months. Use the calculator above to compute it instantly for any combination of amount, rate, and tenure.

Question 2

What is the difference between fixed and floating interest rate for a personal loan?

Accepted Answer

A fixed rate stays the same for the entire tenure (or a defined period) — your EMI never changes. A floating rate is linked to an external benchmark (typically the RBI Repo Rate) and resets every quarter or with each RBI policy change. Floating rates are usually 0.5–1% cheaper on day 1 but carry the risk of going up. Most Indian borrowers pick floating because of zero prepayment penalties under RBI rules.

Question 3

Can I prepay or foreclose my personal loan without penalty?

Accepted Answer

For floating-rate retail loans, the RBI prohibits prepayment and foreclosure charges. For fixed-rate loans, lenders may charge 2–5% on the outstanding. Always check the lender's prepayment clause before signing — it's listed on each offer card above.

Question 4

Which bank gives the fastest personal loan disbursal?

Accepted Answer

Pre-approved customers of HDFC, ICICI, Axis, Kotak, IDFC First, and Bajaj Finserv can get money in their account within 2–4 hours. Fresh applicants typically see 24–48 hours for salaried borrowers with strong credit (CIBIL > 750).

Question 5

What is the maximum personal loan I can get?

Accepted Answer

Most lenders cap at 10–15× of your net monthly income, up to ₹40–50 lakh for top-tier customers. EMI must stay under 50% of your take-home pay (FOIR rule). CIBIL > 750 unlocks the best amounts and rates.

Question 6

What documents do I need for a personal loan?

Accepted Answer

PAN, Aadhaar, last 3 months salary slips (or 2 years ITR for self-employed), last 6 months bank statement, employment proof, and address proof. Many lenders now offer end-to-end digital approval with no paperwork.

Question 7

Why is the personal loan rate higher than home loan rate?

Accepted Answer

Personal loans are unsecured — there's no collateral the lender can recover if you default. The higher rate (10.5–24%) prices in that risk. Home loans are secured by the property, so the rate stays close to the bank's cost of funds.

Question 8

Can I get a personal loan with a low CIBIL score?

Accepted Answer

CIBIL < 650 makes most banks decline. NBFCs (Bajaj Finserv, Fullerton, IIFL) may approve at much higher rates (20–32%) or smaller amounts. Better to build credit first via a secured credit card or loan against FD.

Personal Loan EMI Calculator India 1970

Outstanding Balance Over Time

Principal vs Interest

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