₹10 Lakh Personal Loan EMI: Rates, Tenures and Total Cost
EMI on ₹10 lakh at different rates
Personal loan rates in India run from about 10.5% for strong borrowers to 24% or more, and they depend on your credit score, income and employer. For ₹10 lakh over 3 years:
| Rate | EMI | Total interest | Total repaid |
|---|---|---|---|
| 11% | ₹32,739 | ₹1.79 lakh | ₹11.79 lakh |
| 14% | ₹34,178 | ₹2.31 lakh | ₹12.31 lakh |
| 18% | ₹36,152 | ₹3.01 lakh | ₹13.01 lakh |
The gap between 11% and 18% is ₹1.23 lakh in interest, for the same ₹10 lakh and the same tenure. Rate matters more on a personal loan than on almost any other loan type, so compare offers.
EMI by tenure
At 11% for ₹10 lakh:
| Tenure | EMI | Total interest |
|---|---|---|
| 3 years | ₹32,739 | ₹1.79 lakh |
| 5 years | ₹21,742 | ₹3.05 lakh |
Moving from 3 to 5 years cuts the EMI by about ₹11,000 but costs about ₹1.26 lakh more in interest. Choose the shortest tenure you can pay comfortably.
Income needed
If a lender allows total EMIs up to 50% of take-home pay, a ₹32,739 EMI needs about ₹65,500 a month in net income. The 5-year EMI of ₹21,742 needs about ₹43,500. Lenders also look at your existing EMIs, employer and credit score.
Costs beyond the interest rate
- Processing fee: often 1% to 3% of the loan, plus GST. On ₹10 lakh that is ₹10,000 to ₹30,000 before GST.
- Foreclosure charge: commonly 2% to 5% of the outstanding amount if you close early.
- Late payment fees and bounce charges.
- Insurance: an optional loan protection plan sometimes gets added to the loan, so you pay interest on it.
Compare the total repayment, not just the EMI. A loan with a slightly lower rate but a high processing fee can cost more.
Reducing-balance method, monthly compounding. Rate shown is indicative: confirm the live rate with your lender.
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*Monthly take-home needed if EMI is capped at 50% of income.
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| Year 1 | ₹1,47,208 | ₹52,078 | ₹3,52,792 |
| Year 2 | ₹1,65,877 | ₹33,408 | ₹1,86,915 |
| Year 3 | ₹1,86,915 | ₹12,371 | ₹0 |
How to get a better rate
- Check your credit score first and fix any errors. See how credit score affects loan rates.
- Compare offers from several lenders using soft eligibility checks.
- Negotiate the processing fee. Lenders often waive part of it.
- Consider an existing relationship. Salary account holders sometimes get pre-approved lower rates.
- Ask whether the rate is reducing-balance. A flat rate costs much more. Use the flat to reducing rate calculator.
Before you borrow
A personal loan is unsecured and expensive compared with secured loans. Use it for needs that matter, and borrow only what you need. Don't take a personal loan to pay another EMI. If you can wait and save, even partly, you cut the interest.
FAQ
What is the EMI for a 10 lakh personal loan?
At 11% for 3 years it is ₹32,739. At 14% it is ₹34,178, and at 18% it is ₹36,152.
How much salary do I need for a ₹10 lakh personal loan?
About ₹65,000 net a month for a 3-year EMI at 11%, if the lender caps EMIs at 50% of income. A longer tenure lowers the requirement.
Is a 3-year or 5-year personal loan better?
A 3-year loan costs far less interest. A 5-year loan has a lower EMI. Pick the shortest tenure you can afford.
Can I prepay a personal loan?
Usually yes, but many lenders charge a foreclosure fee of 2% to 5%. Check the agreement first.
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This guide is for general information, not financial advice. Rates and rules change: confirm current terms with your lender.