Personal Loan EMI Calculator
Loan Amount
Tenure (Years)
Interest Rate (P.A)
All about Personal Loan Calculator Explained

Properly managing the repayments of a credit instrument goes a long way in boosting a borrower’s credit history. Being aware of the EMIs beforehand plays a major role in repaying a personal loan punctually. An online personal loan EMI calculator turns out to be a handy tool for this purpose.
Let’s delve in to find out all the vital aspects related to a personal loan calculator. But before that, you need to gain a fair amount of knowledge related to personal loan EMI.
Table of Contents
What is a Personal Loan EMI?

What is a Personal Loan EMI?
A personal loan is an unsecured credit instrument. An individual can utilise it for several purposes, like house renovation, weddings, travel, medical treatments, and other immediate financial needs.
Now, what is a personal loan EMI?
Equated monthly instalments or EMI for a personal loan refers to the amount payable monthly after one acquires a personal loan. This EMI amount is used for paying off both the loan interest and principal amount over the tenure until the entire loan is paid off. The personal loan EMI remains the same throughout the tenure.
What are the Factors Affecting Personal Loan?
Following are the three factors that affect the personal loan EMIs:
What is an Online Personal Loan EMI Calculator?

What is an Online Personal Loan EMI Calculator?
A loan calculator for a personal loan is an online tool for calculating EMIs that an individual needs to pay for loan repayment.
A free personal loan calculator allows a potential borrower to input values for the loan amount, tenure, and interest rate. The tool then uses these values for computing interest payable till loan tenure, EMI and balance loan amount in a particular period.
However, to understand the working of this online tool, one should have a basic idea about a personal loan EMI first.
What is the Formula to Calculate Personal Loan EMI?
Given below is the personal loan EMI calculator formula -
EMI = [P x R x (1+R) ^N] / [(1+R) ^ N-1]
The 3 components that make up equated monthly instalments of a personal loan are mentioned in the above personal loan calculation formula as P, R, and N.
Where:
P = Principal amount
R = Interest rate
N = Loan tenure
The following table will enable you to understand the above formula better. In this example, consider that the amount borrowed or principal is ₹10,00,000. The rate of interest charged annually is 10.5%. In this formula, the interest rate is calculated every month. This implies R = Rate of Annual interest/12/100. Therefore, as the interest rate is 10.5% per annum here, then R = 10.5/12/100=0.00875.
The computed EMI will be ₹13,493. Thus, you need to pay ₹13,493 for 120 months to repay the complete loan amount. The total amount payable will be ₹13,493 * 120 = ₹16,19,220. This includes ₹6,19,220 as interest on the acquired loan.
Benefits of a Personal Loan EMI Calculator
Illustrated below are several benefits of using a personal loan EMI calculator:
Documents Required for a Personal Loan
Looking for documents required to acquire a personal loan? Here is your answer! Potential borrowers seeking a personal loan should keep in mind various documents required for a personal loan. Given below is the personal loan documents list necessary while applying for this credit instrument:
KYC documents
Salary slips of last few months
Employee ID card
Bank statements of an individual’s salary account for the last few months
What are the Tax Benefits on Personal Loan?

What are the Tax Benefits on Personal Loan?
Wondering if there is any tax benefit on a personal loan?
Even though a personal loan is not taxable, individuals might avail of tax benefits on a personal loan in India if they put this credit instrument to a specific end-use. According to the Income Tax Act, 1961, one can claim tax deductions and exemptions if the loan amount is put to some specific uses.
An individual can claim tax deductions on personal loan interest repayments if they use the amount to meet expenses regarding business expansion. However, the investment must be made to increase the business revenue.
Section 24(b) of the Income Tax Act, 1961 allows a tax rebate on a personal loan if an individual utilises the amount for house improvement or renovation. For this, interest paid on the loan repayment up to ₹30000 can be claimed as a deduction from the total taxable income. If an individual utilises the amount for purchasing a residential house, a deduction of up to ₹2 lakh is allowed for the paid interest.
This implies that an individual can enjoy tax savings on this credit instrument by using the amount for home renovation.
There are benefits available for using the amount for buying any other asset like gold, non-residential house property, shares, and jewellery. For such investments, one can benefit from the exempted tax on the loan. The interest paid on this is considered an asset acquisition cost.
It lowers the total capital gains and offers tax benefits for a personal loan.
Now that it’s clear how so many factors can affect your repayment amount, it is safe to use a personal loan EMI calculator beforehand for effective financial management. Besides, potential borrowers should research multiple lending institutions and compare personal loan rates to choose the best offer.
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