How is personal loan EMI calculated?

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly rate (annual rate divided by 12 and by 100) and n is the number of months. Interest is charged on the reducing outstanding balance, not the original amount.

What does reducing balance mean?

Interest is charged only on the amount you still owe. As each EMI repays part of the principal, the interest portion shrinks and the principal portion grows, while the EMI itself stays the same.

Does the calculator include the processing fee?

No. It shows interest only. A one-time processing fee of up to 2% is deducted at disbursal, and your all-inclusive APR — which folds in mandatory fees — is stated in the Key Fact Statement.

Will part-prepayment reduce my EMI or my tenure?

Either, and you choose. Part-prepayment and foreclosure are free after the first EMI is paid; reducing the tenure saves more interest than reducing the EMI.

Personal loan EMI calculator

A personal loan EMI on a reducing balance is calculated as EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. At 14.5% p.a., ₹1,00,000 over 24 months gives an EMI of about ₹4,830.

Plan your EMI

14.5% p.a. onwards

Loan amount₹75,000

₹5,000₹5,00,000

Tenure18 months

3 mo60 mo

Monthly EMI

₹4,661

Total interest

₹8,902

Total payable

₹83,902

Indicative only. Final rate depends on your credit profile and RBI-compliant lending partner policies.

Sample EMIs at 14.5% p.a.

Illustrative EMI by loan amount and tenure at 14.5% p.a. reducing balance
Loan amount	12 months	24 months	36 months
₹10,000	₹900	₹482	₹344
₹25,000	₹2,251	₹1,206	₹861
₹50,000	₹4,501	₹2,412	₹1,721
₹1,00,000	₹9,002	₹4,825	₹3,442

Illustrative EMI at the lowest available rate, excluding the processing fee. Your actual APR is set by the lending partner and disclosed in the Key Fact Statement.

How to use the result

1. Enter the amount you actually need
Pick the smallest amount that solves the problem, between ₹5,000 and ₹5,00,000. Borrowing more than the requirement raises both the EMI and the total interest.
2. Choose a tenure your worst month can afford
Tenures run 3 to 60 months. A longer tenure lowers the EMI but increases total interest, so compare both figures rather than only the monthly number.
3. Read the EMI, total interest and total repayable together
The EMI tells you whether you can service the loan. Total repayable tells you what the loan costs. Both matter, and only reading the first is how people over-borrow.
4. Confirm against the Key Fact Statement
The calculator uses the lowest available rate. Your actual APR is set by the lending partner based on your profile and is stated, along with every fee, in the Key Fact Statement before you sign.

Frequently asked questions

Happy with the EMI?

Check what you qualify for in about three minutes. The eligibility check is a soft credit pull and does not affect your credit score.

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CredBean is a brand of Privena Financial Services Private Limited. CredBean is a technology platform and does not lend on its own account. Loans are offered by RBI-registered lending partners. Interest from 14.5% p.a. reducing balance; processing fee up to 2%. Representative example: ₹75,000 for 18 months at 14.5% p.a. — EMI ₹4,661, total interest ₹8,902. Credit at sole discretion of the lending partner.