Personal Loan EMI Calculator (Including Processing Fee)
Personal loans are quick but expensive. This calculator shows your EMI and the real cost once the processing fee and GST are included.
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EMI and the Hidden Cost of Fees
The EMI depends only on the loan amount, rate and tenure. But the processing fee — usually 1–3% plus 18% GST — is deducted from the money you receive, so your effective interest rate is higher than the quoted one.
Example: ₹5 lakh at 12% for 3 years has an EMI of ₹16,607. A 2% fee with GST is ₹11,800, so you receive ₹4,88,200 but repay ₹5,97,858 — an effective rate of about 13.7%.
EMI per ₹1 Lakh
| Interest rate | 2 years | 3 years | 5 years |
|---|---|---|---|
| 11% | ₹4,661 | ₹3,274 | ₹2,174 |
| 13% | ₹4,754 | ₹3,369 | ₹2,275 |
| 15% | ₹4,849 | ₹3,467 | ₹2,379 |
| 18% | ₹4,992 | ₹3,615 | ₹2,539 |
How to Get a Lower Rate
- A credit score above 750 typically gets the best offers — check yours before applying.
- Pre-approved offers from your salary bank are often cheaper than new lenders.
- Choose the shortest tenure you can afford; personal loan interest adds up fast.
- Avoid applying to many lenders at once — each hard enquiry can lower your score.
Frequently Asked Questions
What is the EMI for a ₹2 lakh personal loan for 2 years?
At 12% the EMI is about ₹9,415 a month.
Is GST charged on personal loan processing fees?
Yes. Processing fees are a service, so 18% GST is added to the fee. The interest itself does not attract GST.
Can I close a personal loan early?
Most lenders allow foreclosure after 6–12 EMIs, usually with a 2–5% charge on the outstanding amount. Floating-rate loans to individuals cannot carry a foreclosure charge.
Is a personal loan cheaper than a credit card?
Usually yes — credit cards charge 36–45% a year on unpaid balances, while personal loans are typically 10.5–24%.