Personal loan EMI for ₹10 lakh — 1 to 5 years

10 lakh personal loan EMI: quick answer

A ₹10 lakh personal loan is at the upper end for most salaried borrowers and is usually used for a wedding, major renovation or to consolidate several loans. At 12% — a common rate for salaried borrowers with good credit — the EMI is ₹33,214 for 3 years and you pay ₹1,95,715 in interest. Personal-loan pricing varies widely: ICICI Bank, for example, lists rates between 10.25% and 16.5% a year. Your rate depends on credit score, employer category, income and existing loans.

EMI for a 10 lakh personal loan by tenure

Stretching from 3 to 5 years lowers the EMI by ₹10,970 but adds ₹1,38,952 of interest. Because unsecured loans are expensive, choose the shortest tenure whose EMI you can comfortably pay.

EMI at different personal-loan rates

The real cost: processing fee and APR

Lenders usually charge a processing fee — ICICI Bank, for example, charges up to 2% of the loan plus GST — and it is normally deducted from the amount credited. On ₹10 lakh that is ₹23,600, so you receive ₹9,76,400 but repay EMIs on the full ₹10 lakh. The effective annual cost (APR) of the 3-year loan therefore rises from 12% to about 13.67%. Every lender must now give you a Key Fact Statement (KFS) showing the APR before you sign — compare loans on that number.

Flat rate vs reducing rate: don’t be fooled

Some lenders and fintech apps quote a flat rate, where interest is charged on the original amount for the whole tenure. The 12% reducing-balance loan above has the same EMI as a flat rate of only 6.52% — a flat rate looks much cheaper than it is. Always ask for the reducing-balance rate or the APR. Our guide on how EMI is calculated shows the formula.

Personal loan vs carrying a credit-card balance

Credit cards typically charge around 3–3.75% a month on revolving balances. At about 3.5% a month (~42% a year), paying the same ₹33,214 every month would never clear the balance, because the monthly interest alone (about ₹35,000) is more than the payment — compared with ₹1,95,715 on the personal loan. Using a personal loan to clear card debt saves money only if you stop revolving on the card.

Salary needed and eligibility

Most banks keep total EMIs within about 50–60% of net monthly income. The 3-year EMI of ₹33,214 alone needs a take-home of roughly ₹66,400 at 50% FOIR; banks also set a minimum salary for unsecured loans, which varies by lender and city. Existing EMIs reduce the amount you can borrow.

Prepayment and foreclosure

Paying ₹2,50,000 extra after 12 months would close the 3-year loan in 2 yrs 3 mo and save ₹54,657 of interest. Most personal loans are fixed-rate, and lenders often charge foreclosure fees (commonly 2–5% of the outstanding amount, sometimes after a lock-in). RBI’s rules effective 1 January 2026 ban prepayment charges only on floating-rate loans to individuals, so read the KFS for your loan’s terms.

10 lakh vs other personal-loan amounts

Tips

• At ₹10 lakh, a loan against property, a top-up on your home loan or a loan against mutual funds can cost much less than an unsecured loan — worth comparing before you apply.
• Pre-approved offers in your bank app are often cheaper than open-market loans because the bank already sees your salary credits.
• Personal-loan interest is not tax-deductible unless the money is used for buying, building or repairing a house (deduction within the house-property limits) or for business.
• Avoid taking several small loans from apps; each hard enquiry and open account weighs on your credit score.

FAQ: ₹10 lakh personal loan EMI

What is the EMI for a ₹10 lakh personal loan for 3 years?

About ₹33,214 a month at 12%, with total interest of ₹1,95,715.

What is the EMI for ₹10 lakh personal loan for 5 years?

About ₹22,244 a month at 12%; total interest rises to ₹3,34,667.

What is the real cost of a ₹10 lakh personal loan including fees?

With a 2% processing fee plus 18% GST (₹23,600) deducted from the disbursal, the effective annual cost of a 12% 3-year loan is about 13.67%.

What is 12% flat rate equivalent to?

A 12% reducing-balance rate over 3 years has the same EMI as a flat rate of about 6.52%. Flat rates always look lower than the true cost.

Can I foreclose a personal loan early?

Usually yes, but fixed-rate personal loans may carry foreclosure charges, often after a minimum number of EMIs. RBI’s ban on prepayment charges from 1 January 2026 applies to floating-rate loans to individuals.