Question 1

How is personal loan EMI calculated?

Accepted Answer

Personal loan EMI is calculated using the standard amortization formula: EMI = P × R × (1+R)^N / ((1+R)^N - 1). Since personal loans are unsecured, they typically have higher interest rates (10.5-24%) compared to secured loans.

Question 2

What is the current personal loan interest rate?

Accepted Answer

Personal loan interest rates in India range from 10.5% to 24% per annum as of 2025. Borrowers with credit scores above 750 can get rates as low as 10.5-12%, while those with scores below 700 may face rates above 18%.

Question 3

What is the maximum personal loan amount I can get?

Accepted Answer

Most banks offer personal loans up to ₹25-40 lakhs. Typically, banks lend 10-15 times your monthly salary. Your eligibility depends on your income, credit score, existing obligations, and repayment capacity.

Question 4

Can I get instant approval for personal loans?

Accepted Answer

Yes, many banks offer instant personal loans with approval in minutes if you have a good credit score (750+), existing banking relationship, and stable income. Pre-approved offers can be disbursed within hours.

Question 5

Are there any charges on personal loan prepayment?

Accepted Answer

RBI guidelines prohibit prepayment charges on floating rate personal loans. However, fixed-rate loans may have penalties of 2-5%. Always check your loan agreement for specific prepayment terms.

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