Personal loan EMI calculator, fee included
Enter the loan, rate, tenure and processing fee. See your EMI and the effective rate you really pay.
- Fee and GST included
- Effective rate
- Free, no sign-up
When loan interest cuts your tax
Personal loan interest usually doesn't reduce tax, but it can depending on how the money was used.
Questions people often ask
Can I claim personal loan interest?
Only if the money was used for a house (section 24) or a business. Keep proof of how it was spent.
Does the processing fee count?
Generally no. It's a cost of the loan, not interest you can claim.
What a personal loan really costs
The quoted rate isn't the whole cost.
- The EMI repays the loan and its interest over the tenure.
- The processing fee, plus 18% GST, is usually cut from what you receive.
- The effective rate is what you really pay on the money you got.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- GST rates for services (financial services, heading 9971: 18%) Central Board of Indirect Taxes and Customs
- Reserve Bank of India: loans and borrowers Reserve Bank of India
Common questions
How is a personal loan EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r is the yearly rate ÷ 12, and n is the number of months.
What is the EMI on a ₹5 lakh personal loan?
At 12% for 3 years, about ₹16,607 a month, with about ₹97,858 of interest in total.
How does the processing fee change the cost?
The fee, plus 18% GST on it, is usually deducted from the money you receive. You repay the full loan on less money, so the real (effective) rate is higher than the quoted rate.
What is the effective rate?
The yearly rate at which your EMIs would repay only the amount you actually received. A 12% loan with a 2% fee costs about 13.7% a year over 3 years.
Is a shorter tenure better?
It raises the EMI but cuts the total interest. Choose the shortest tenure whose EMI you can comfortably pay.
Can I prepay a personal loan?
Usually yes. Floating-rate loans to individuals can't carry prepayment charges; many personal loans are fixed-rate, so check your agreement.
