What is Personal Loan EMI?
Personal Loan EMI is the fixed monthly installment you pay towards repaying your personal loan. Unlike secured loans, personal loans are unsecured and typically have higher interest rates but offer quick disbursement without collateral requirements.
Personal Loan EMI Formula
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
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Quick Tip
Compare personal loan offers from multiple banks and NBFCs. Interest rates can vary significantly, and even a 1-2% difference can save you thousands in interest.
Eligibility Criteria
- Age: 21-60 years
- Income: Minimum ₹15,000-25,000/month
- Credit Score: 650+ (750+ for best rates)
- Employment: Minimum 1-2 years experience
Documents Required
- Identity Proof (Aadhaar, PAN, Passport)
- Address Proof
- Income Proof (Salary slips, ITR)
- Bank Statements (3-6 months)
- Employment Proof
When to Take a Personal Loan
- Medical Emergencies: Unexpected health expenses
- Debt Consolidation: Combine multiple high-interest debts
- Home Renovation: Fund repairs or upgrades
- Wedding Expenses: Cover wedding-related costs
- Education: Short-term education financing
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Caution
Avoid taking personal loans for discretionary expenses. The high interest rates can lead to a debt trap. Only borrow what you can comfortably repay.