Personal loan EMI for ₹1 lakh to ₹20 lakh
The monthly EMI at 12% a year, a typical rate for a salaried borrower with a good credit score. Rates vary widely between lenders, so put your own offer into the calculator.
| Loan | 1 year | 2 years | 3 years | 4 years | 5 years |
|---|---|---|---|---|---|
| ₹1 Lakh | ₹8,885 | ₹4,707 | ₹3,321 | ₹2,633 | ₹2,224 |
| ₹2 Lakh | ₹17,770 | ₹9,415 | ₹6,643 | ₹5,267 | ₹4,449 |
| ₹3 Lakh | ₹26,655 | ₹14,122 | ₹9,964 | ₹7,900 | ₹6,673 |
| ₹5 Lakh | ₹44,424 | ₹23,537 | ₹16,607 | ₹13,167 | ₹11,122 |
| ₹7 Lakh | ₹62,194 | ₹32,951 | ₹23,250 | ₹18,434 | ₹15,571 |
| ₹10 Lakh | ₹88,849 | ₹47,073 | ₹33,214 | ₹26,334 | ₹22,244 |
| ₹15 Lakh | ₹1,33,273 | ₹70,610 | ₹49,821 | ₹39,501 | ₹33,367 |
| ₹20 Lakh | ₹1,77,698 | ₹94,147 | ₹66,429 | ₹52,668 | ₹44,489 |
Personal loan interest rates in October 2026
SBI's personal loans start from 10% a year. That rate goes to borrowers with high credit scores and steady salaries, often from employers the bank has a tie-up with. Other banks quote similar starting rates; NBFCs and app-based lenders often charge much more, especially for small, short loans. See SBI's current rate card and compare at least two or three offers.
The rate you are offered depends mainly on:
- your credit score and repayment history;
- your monthly income and the EMIs you already pay;
- your employer and how long you have worked there;
- whether you already bank with the lender.
Processing fee, GST and the real cost
Most lenders charge a processing fee of a few percent of the loan, plus 18% GST on the fee, and deduct both from the amount they pay you. You still repay EMIs on the full loan, so the true cost is higher than the rate on the offer.
For example, ₹5 lakh at 12% for 3 years has an EMI of ₹16,607 and costs ₹97,858 in interest. With a 2% fee plus GST (₹11,800), you receive ₹4,88,200 and the APR rises to about 13.67%. RBI requires lenders to show this APR in the Key Facts Statement, so compare loans on the APR rather than the headline rate.
Prepaying and closing a personal loan early
Most personal loans carry a fixed rate. On these, the lender may charge a fee for part-payment or foreclosure, often only in the first year or so, and only if it is disclosed in the sanction letter and Key Facts Statement. GST is added to any such fee.
If your personal loan has a floating rate and was sanctioned or renewed on or after 1 January 2026, RBI's Pre-payment Charges Directions, 2025 bar any prepayment or foreclosure charge. Prepaying early in the loan saves the most interest: see how much with the prepayment calculator, which works for any EMI loan.
Who can get a personal loan
- Age: usually 21 to 58–60 at the end of the loan for salaried people.
- Income: a minimum monthly salary set by each lender, higher in big cities.
- Credit score: 750 or more for the best rates.
- Documents: PAN, Aadhaar, recent salary slips and bank statements, or ITRs if you are self-employed.
To see how much you can borrow on your income, use the loan eligibility calculator; for your take-home pay, the salary calculator.
Before you take a personal loan
- Check who the lender is. A loan app must name the bank or RBI-registered NBFC behind the loan, and the money must come straight from it into your account. Avoid apps that want access to your contacts or photos.
- Borrow for a short tenure. Personal loans are expensive; pay them off as fast as your budget allows.
- Look at cheaper secured options. A gold loan or a loan against a fixed deposit usually costs less than an unsecured personal loan.
- Keep total EMIs under about 40% of your take-home pay to leave room for emergencies.
Frequently asked questions
What is the EMI on a ₹5 lakh personal loan?
At 10% (SBI's starting rate in October 2026) it is about ₹16,134 a month over 3 years and ₹10,624 over 5 years. At 12%, the 3-year EMI is about ₹16,607.
What is the APR on a personal loan?
The annual percentage rate is the yearly cost of the loan including the processing fee and other charges, not just the interest rate. Because the fee is taken out of the money you receive, the APR is always higher than the quoted rate. Lenders must show it in the Key Facts Statement before you sign.
Can I prepay a personal loan without a penalty?
It depends on the rate type. Most personal loans have a fixed rate, and the lender may charge for prepayment or foreclosure if the Key Facts Statement says so. On floating-rate loans to individuals sanctioned or renewed from 1 January 2026, RBI bars prepayment charges altogether.
What credit score do I need for a personal loan?
Most banks look for a score of 750 or more for their best rates. A lower score can still get a loan, but usually at a higher rate or from an NBFC. Check your report for errors before applying, and avoid applying to many lenders at once.
How much personal loan can I get on my salary?
Banks typically keep all your EMIs, including the new one, within about 40–60% of your take-home pay, and cap the loan at a multiple of your monthly salary. The loan eligibility calculator on this site works out the amount from your income and existing EMIs.
Is a longer tenure better for a personal loan?
It lowers the EMI but raises the total interest. On ₹5 lakh at 10%, 5 years instead of 3 lowers the EMI by about ₹5,510 but adds about ₹56,602 in interest.
Is GST charged on a personal loan?
Not on the interest or the EMI. GST at 18% applies to the processing fee and other charges, such as a foreclosure fee or a bounced-EMI charge.
Sources
- State Bank of India – loan interest rates
- RBI – Pre-payment Charges on Loans Directions, 2025
- Reserve Bank of India
Last updated 6 October 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.