EMI on a ₹10 lakh personal loan
At 12.50% a year for 5 years, the EMI on a ₹10 lakh personal loan is ₹22,498. In total, you repay ₹13.50 lakh, and ₹3.50 lakh of this is interest. A rate that is 1% lower decreases your interest by approximately ₹30,320. Thus, before you accept a loan, compare the alternatives on this page.
12.50% is an example rate. Each lender sets the rate of a personal loan for each borrower, from the credit score, the employer and the income. Use the rate that the lender gives you.
₹10 Lakh personal loan EMI by tenure
At 12.50% on a reducing balance.
| Tenure | EMI each month | Total interest | Total paid |
|---|---|---|---|
| 1 year | ₹89,083 | ₹68,994 | ₹10.69 lakh |
| 2 years | ₹47,307 | ₹1.35 lakh | ₹11.35 lakh |
| 3 years | ₹33,454 | ₹2.04 lakh | ₹12.04 lakh |
| 4 years | ₹26,580 | ₹2.76 lakh | ₹12.76 lakh |
| 5 years | ₹22,498 | ₹3.50 lakh | ₹13.50 lakh |
EMI at different interest rates
Your rate is more important than the tenure. For 5 years, a rate of 11.00% (not 12.50%) decreases your interest by ₹45,331. A rate of 16% increases your interest by ₹1.09 lakh.
| Rate | 2 years | 3 years | 5 years |
|---|---|---|---|
| 10.50% | ₹46,376 | ₹32,502 | ₹21,494 |
| 11.50% | ₹46,840 | ₹32,976 | ₹21,993 |
| 12.50% | ₹47,307 | ₹33,454 | ₹22,498 |
| 14.00% | ₹48,013 | ₹34,178 | ₹23,268 |
| 16.00% | ₹48,963 | ₹35,157 | ₹24,318 |
| 18.00% | ₹49,924 | ₹36,152 | ₹25,393 |
Alternatives with a lower cost than a ₹10 lakh personal loan
Gold loan
RBI sets a maximum gold loan for consumption (not for a business). The maximum is a percentage of the gold value. The percentage changes with the total that you borrow on gold (RBI Credit Facilities Directions, 2025, para 44). A ₹10 lakh loan is in the 75% band. Thus, you must have gold with a value of approximately ₹13.33 lakh or more. A smaller loan has a higher limit: a loan of ₹5 lakh or less can be a maximum of 80% of the gold value.
Two conditions are important. On a bullet loan, you pay the interest and the principal at the end. For this loan, the limit applies to the total that you repay at maturity. Thus, you must have more gold. Also, the bands apply to the total of all your consumption gold loans, not to each loan.
Gold loans usually have lower rates than unsecured personal loans. Compare the rates on the rate page of each lender.
Home loan top-up
If you have a home loan at this time, your lender can possibly give you a top-up loan on the same property. The rate of a top-up loan is usually nearer to home loan rates than to personal loan rates. The tenure can also be longer. Examine the top-up rate on the rate page of your lender.
Refer to the guide that compares personal loans, top-up loans and gold loans.
The full cost: fees and flat rates
Most lenders deduct a processing fee at the start, and you pay 18% GST on this fee. A 2% fee on ₹10 lakh is ₹20,000, or ₹23,600 with GST. Thus, you get less than ₹10 lakh, but you repay all of ₹10 lakh.
Some lenders and dealers give a flat rate. They calculate this rate on the full loan for all of the tenure. A 12% flat rate for 5 years costs the same as approximately 20.3% on a reducing balance. Get the annual percentage rate (APR) from the Key Facts Statement. Refer to flat rate and reducing balance.
Prepay the loan
RBI does not let lenders charge a fee when an individual prepays a floating-rate loan. This rule started on 1 January 2026 (RBI Pre-payment Charges on Loans Directions, 2025). This rule applies to loans that are not for a business.
Most personal loans have a fixed rate. This RBI rule does not apply to them. Thus, the lender can charge a foreclosure fee. The Key Facts Statement must show this fee.
Salary for a ₹10 lakh personal loan
Lenders usually keep the total of all EMIs at a maximum of 50–55% of your net monthly income. This limit is lender practice, not an RBI rule. If you have no other loans, at 12.50%:
| Tenure | EMI | Net monthly income needed |
|---|---|---|
| 2 years | ₹47,307 | ₹86,013 – ₹94,615 |
| 3 years | ₹33,454 | ₹60,825 – ₹66,907 |
| 5 years | ₹22,498 | ₹40,905 – ₹44,996 |
Frequently asked questions
How much is the EMI for a ₹10 lakh personal loan for 5 years?
₹22,498 each month at 12.50%. At 10.50%, the EMI is ₹21,494. At 16.00%, the EMI is ₹24,318.
How much gold is necessary for a ₹10 lakh gold loan as an alternative?
Gold with a value of approximately ₹13.33 lakh. RBI limits a ₹10 lakh consumption gold loan to 75% of the gold value. For a bullet loan, you must have more gold.