💰Loan / EMI Calculator
Calculate your monthly loan payment, total interest, and see the complete amortization schedule
Loan Details
Loan EMI Calculator – Indian Bank & NBFC Rates
Calculate your Equated Monthly Installment (EMI) for personal, car, or gold loans in India. This tool accounts for the latest RBI repo rate changes and helps you compare offers from top Indian banks and NBFCs with clarity on processing fees and GST.
Expert Guidelines
Understanding the RBI Repo Rate Impact
Most floating-rate personal and home loans in India are linked to the RBI's Repo Rate (External Benchmark Lending Rate - EBLR). When the RBI increases the repo rate to control inflation, your EMI or loan tenure typically increases. Using this calculator to see how a 0.25% or 0.50% rate hike affects your monthly budget is a vital part of financial planning for Indian borrowers.
Reserve Bank of India (RBI)
Processing Fees and GST in India
In India, loans come with an upfront processing fee, usually ranging from 0.5% to 2% of the loan amount. Additionally, an 18% GST is applied to these fees and any late-payment charges. Our tool allows you to include these 'hidden' costs to see the actual net amount you will receive in your bank account, preventing surprises during the loan disbursement process.
Central Board of Indirect Taxes and Customs (CBIC)
The Benefit of Pre-EMI vs. Full EMI
If you take a loan for a house under construction or a staged personal loan, Indian banks often offer a 'Pre-EMI' option where you only pay interest. While this lowers your immediate burden, it doesn't reduce the principal. Our calculator helps you compare the total interest cost of Pre-EMI versus starting Full EMIs immediately, helping you save lakhs of rupees over the loan's lifetime.
National Housing Bank (NHB)
Frequently Asked Questions
What is the 'Reducing Balance' method in India?
Most Indian banks use the 'Monthly Reducing Balance' method, where interest is calculated on the outstanding principal at the end of each month. This is much cheaper than the 'Flat Rate' method often used by private money lenders or some older NBFC schemes. Our calculator uses the reducing balance standard to give you an accurate EMI figure compatible with major banks like SBI, HDFC, and ICICI.
Are there prepayment penalties for Indian loans?
Per RBI guidelines, banks cannot charge prepayment penalties on floating-rate individual loans. However, fixed-rate loans and business loans may still carry a 2-4% penalty. Use this tool to calculate if the interest savings from a part-payment exceed the penalty cost, which is a common dilemma for Indian borrowers looking to close their loans early.
How do a Gold Loan and Personal Loan compare?
Gold loans are very popular in India due to lower interest rates (often 8-12%) and quick processing. Unlike personal loans, they don't always require a high CIBIL score. However, if the price of gold drops, the bank may ask for more collateral (the 'margin call'). Use our tool to calculate the EMI for both to see which is more sustainable for your short-term cash needs.
How to Use This Calculator
This calculator helps you understand exactly how much you will pay for a loan. Enter the amount, interest rate, and term to see your monthly payment, total interest, and amortization schedule.
Add extra payments to see how much you can save in interest and how much time you can shave off the loan.
How Loan Payments Work
What is EMI?
EMI (Equated Monthly Installment) is the fixed payment you make each month. It includes both principal repayment and interest charges.
Interest Savings Tip
Making extra payments reduces your principal faster, which means less interest over the life of the loan. Even small extra payments can save thousands.
Understanding Loan Types
- •Personal Loan: Personal loans are unsecured and typically have higher rates
- •Car Loan: Car loans are secured by the vehicle with lower rates
- •Student Loan: Student loans often have special repayment options
Strategies to Pay Off Your Loan Faster
Make Bi-Weekly Payments
Pay half your payment every two weeks instead of once a month. This results in 26 half-payments (13 full payments) per year, making one extra payment without noticing.
Round Up Your Payment
If your payment is $487, round up to $500. Those extra $13 go straight to principal and can save months or years off the loan.
Use Windfall Income
Tax refund, bonus, or gifts? Put at least half toward the loan. A one-time $1,000 payment can save thousands in interest over time.
Frequently Asked Questions
What is a good interest rate for a personal loan?
Rates vary from 5% to 20% annually depending on the lender and your credit profile. With good credit, aim for rates below 10% annually. Compare multiple options before deciding.
Should I take a shorter or longer loan?
Shorter terms have higher payments but much lower total interest. If the payment fits your budget, shorter terms always save money. Use this calculator to compare.
Can I pay off my loan early?
Yes, you can usually pay off early, but check for prepayment penalties in your contract. Some loans have 1-3% fees, others do not. The savings are usually worth it.
This calculator provides estimates. Actual payments may vary based on lender terms, fees, and your credit profile.
Financial Accuracy
Disclaimer: This calculator provides estimates for informational purposes only. This is not financial, tax, or legal advice. Please consult a qualified financial advisor for advice specific to your situation.