What will your personal loan EMI really cost?
Separate the bank's sanctioned principal from the actual net disbursement after processing fees. Compare fee-deducted and financed-fee scenarios with total EMI cost.
Loan principal, interest and processing fees
Processing fee treatment
RBI KFS APR, processing charge GST, credit insurance, documentation costs, digital lending rules, prepayment penalties and changing rates are NOT automatically determined. The monthly rate here is the stated NOMINAL annual reducing-balance rate divided by 12. Loan example rates are placeholders only.
Complete EMI illustration
Complete EMI illustration
First year and final EMI
| EMI number | Interest | Principal repaid | Outstanding balance |
|---|---|---|---|
| 1 | ₹2,167 | ₹4,572 | ₹1,95,428 |
| 2 | ₹2,117 | ₹4,622 | ₹1,90,806 |
| 3 | ₹2,067 | ₹4,672 | ₹1,86,134 |
| 4 | ₹2,016 | ₹4,722 | ₹1,81,412 |
| 5 | ₹1,965 | ₹4,773 | ₹1,76,639 |
| 6 | ₹1,914 | ₹4,825 | ₹1,71,813 |
| 7 | ₹1,861 | ₹4,877 | ₹1,66,936 |
| 8 | ₹1,808 | ₹4,930 | ₹1,62,006 |
| 9 | ₹1,755 | ₹4,984 | ₹1,57,022 |
| 10 | ₹1,701 | ₹5,038 | ₹1,51,984 |
| 11 | ₹1,646 | ₹5,092 | ₹1,46,892 |
| 12 | ₹1,591 | ₹5,147 | ₹1,41,744 |
| 36 | ₹72 | ₹6,667 | ₹0 |
What will your personal loan EMI really cost?
- 01
Check the loan sanction letter and RBI-compliant KFS. Find principal, nominal reducing-balance interest rate, loan months and processing fee; do not use a flat interest rate or KFS annual percentage rate as if it were nominal reducing-balance interest.
- 02
Select the way the bank handles processing fees. For a fee deducted from disbursal, cash received is below the stated loan amount. Financing it increases the EMI and total interest.
- 03
Review total EMI amount, interest, fee, and annualised cost, not only the EMI displayed in a bank advertisement. Additional GST on processing fee and credit life insurance may change the real cost.
- 04
Verify foreclosure conditions, late-payment penalties, cooling-off rules for digital loans and all other fees in the lender KFS. No loan eligibility or RBI-approved rate is implied by this independent calculator.
RBI Key Facts Statement (KFS) matters
RBI KFS APR, processing charge GST, credit insurance, documentation costs, digital lending rules, prepayment penalties and changing rates are NOT automatically determined. The monthly rate here is the stated NOMINAL annual reducing-balance rate divided by 12. Loan example rates are placeholders only.
A bank may advertise a monthly or flat-rate figure. Only enter the nominal reducing-balance annual rate appropriate for standard EMI amortisation.
EMI and processing fee questions
Does this model include GST on processing fees?
Only if you deliberately enter a combined processing charge inclusive of GST. The calculator does not decide the GST or automatically compute tax on financial services.
Is this figure my bank's exact KFS APR?
No. The RBI's required APR should be checked in the actual KFS. Our simplified annual IRR reflects only the nominal rate and single entered charge.
Can I enter a flat annual interest rate?
No. Flat interest and reducing-balance EMI differ fundamentally. Use an appropriate reducing-balance nominal annual rate.
Reserve Bank of India — Official portal
Verify the required all-in APR in your bank Key Facts Statement.