See exactly how much your interest rate is costing you — and how much you'd save at a lower rate.
Your personal loan interest rate determines two things: your monthly EMI and your total interest paid over the full tenure. Most borrowers only think about the EMI. The total interest number is the one that should matter more — and it's often a shock when you actually calculate it.
Enter your loan amount, rate, and tenure below. You'll get your exact EMI, total interest paid, and a comparison against the current market benchmark so you know whether your rate is fair or expensive.
This is the table most banks would rather you never saw. Total interest paid on a ₹10 lakh personal loan over 5 years:
| Interest Rate | Monthly EMI | Total Interest Paid | Extra vs 11% rate |
|---|---|---|---|
| 11% | ₹21,742 | ₹3,04,520 | — |
| 13% | ₹22,753 | ₹3,65,180 | +₹60,660 |
| 16% | ₹24,318 | ₹4,59,080 | +₹1,54,560 |
| 20% | ₹26,494 | ₹5,89,640 | +₹2,85,120 |
| 24% | ₹28,750 | ₹7,25,000 | +₹4,20,480 |
Someone paying 24% on a ₹10 lakh loan over 5 years pays ₹4.2 lakhs more in interest than someone paying 11%. Both borrowed the same amount, for the same period. The only difference is the rate they accepted.
All major banks in India calculate personal loan interest on a reducing balance basis — meaning interest is charged only on the outstanding principal, not the original loan amount. This is the standard and correct method.
Some informal lenders and older loan products quote a "flat rate." A 10% flat rate sounds lower than a 15% reducing balance rate but it's actually more expensive. On a ₹5 lakh loan over 3 years, a 10% flat rate equals approximately 18% reducing balance rate in real cost terms.
Always ask which method is being used. If a lender quotes you a flat rate, convert it to reducing balance before comparing with bank offers.
| Rate | Verdict | Who typically qualifies |
|---|---|---|
| Below 11% | Excellent | Top govt employees, top-tier salary accounts, CIBIL 800+ |
| 11% – 13% | Fair | Salaried, CIBIL 750+, good employer category |
| 13% – 16% | Above market | Average profile — worth negotiating down |
| 16% – 20% | Expensive | Lower CIBIL, NBFCs — consider a balance transfer |
| Above 20% | Red flag | Fintech apps, last resort borrowing |
Improve your CIBIL score before applying. Going from 700 to 750 can reduce your rate by 2 to 4 percentage points at most lenders. If your application isn't urgent, spending 6 months improving your score before applying is often the highest-return action you can take.
Get competing offers and negotiate. Apply to at least 3 lenders using soft-enquiry tools, get the rates in writing, then call your preferred bank and ask them to beat the lowest offer. Banks have more pricing flexibility than they advertise, especially for salary account holders.
Transfer an existing loan to a lower-rate lender. If you already have a personal loan at a high rate, a balance transfer to a lower-rate lender can reduce your remaining interest significantly. The earlier in the tenure you transfer, the more you save.
See if you're overpaying and by exactly how much
Check My Loan Rate → Calculate if a balance transfer saves you money