What is a Personal Loan?
A Personal Loan is an unsecured loan, meaning you do not have to provide collateral (like a house or car) to borrow the money. Because the bank takes on higher risk, personal loans carry higher interest rates than secured loans and have shorter tenures (usually 1 to 5 years).
How to use the Calculator
Enter your desired loan amount, the interest rate offered, and the repayment tenure. The calculator determines your Equated Monthly Installment (EMI) and the total interest you will pay over the loan period.
Unlike floating-rate home loans, banks are legally allowed to charge prepayment penalties on fixed-rate personal loans. If you plan to close the loan early, always check the foreclosure charges (usually 2% to 5% of the outstanding principal) before signing the agreement.