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How personal loan EMIs work.
A simple way to understand the monthly payment behind a personal loan.
The basic idea
An EMI is a regular monthly payment that repays principal and interest over a stated tenure. In a reducing-balance calculation, interest is calculated on the outstanding principal each month.
What changes your EMI
A larger amount or higher rate usually increases the monthly payment. A longer tenure can reduce the monthly amount while increasing total interest paid over time.
What to compare
Use the calculator for an estimate, then review the lender's annual rate, fees, repayment schedule and prepayment conditions. The lender's documents govern the actual loan.
Information here is educational and not a lender or issuer offer. Review current provider terms before applying.