Move the sliders. The EMI, total interest and total payable update as you go. Nothing leaves your browser.
Every EMI comes from one formula. If P is the amount, r is the monthly rate (the annual rate divided by 1,200), and n is the number of months:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Because the rate is charged on the reducing balance, each EMI is part interest and part principal, and the interest share shrinks every month. That is why a shorter tenure costs far less interest overall, even though the monthly EMI is higher.
Take our representative personal loan: ₹1,00,000 over 12 months at 14% p.a. The monthly rate is 14 ÷ 1,200. Run the formula and the EMI is ₹8,979. Over 12 months that is ₹1,07,748, so the total interest is ₹7,748. Add the 2% processing fee and the effective APR works out to about 17.9%.
The EMI is your monthly payment. The interest rate is the cost of the money. The APR is the true annualised cost including the one-time processing fee, so it is a little higher than the rate and is the best number for comparing offers.
A longer tenure means you hold the principal for longer, so interest accrues over more months. The EMI looks smaller, but you pay more interest in total. Shorten the tenure if you can.
No. It is indicative, to help you plan. Your final amount, rate and schedule are set in your Key Fact Statement before you sign, based on your profile.