What is a Personal Loan EMI?
A personal loan EMI is the fixed amount you pay every month to your lender until the loan is repaid. It includes both principal (the actual loan amount) and interest (lender’s charges).
The EMI depends on three factors:
- Loan Amount – Here it is ₹9,00,000.
- Tenure – 7 years (84 months).
- Interest Rate – This varies depending on your credit score, lender, and country.
Factors Affecting Your EMI for ₹9 Lakh Loan
1. Interest Rate
A small change in rate makes a big difference. For example, a 10% rate will have a much lower EMI than a 14% rate.
2. Loan Tenure
Longer tenure = smaller EMI but higher total interest. Shorter tenure = bigger EMI but less overall interest.
3. Credit Score
In India, lenders prefer 750+ CIBIL score. In the USA, a 700+ FICO score gets you the best deals.
4. Lender Policies
Every bank or NBFC has its own terms, processing fees, and hidden charges.
How to Calculate EMI for a ₹9 Lakh Loan?
The formula used is: EMI=P×R×(1+R)N(1+R)N−1EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N-1}EMI=(1+R)N−1P×R×(1+R)N
Where:
- P = Loan amount (₹9,00,000)
- R = Monthly interest rate (annual rate / 12 / 100)
- N = Loan tenure in months (7 years = 84 months)
Instead of doing the math manually, you can use any personal loan EMI calculator available online for instant results.
Example EMI Scenarios for ₹9 Lakh Loan (7 Years)
(Assuming different interest rates for better clarity)
- At 10% p.a. → EMI approx. ₹14,927/month
- At 12% p.a. → EMI approx. ₹16,064/month
- At 14% p.a. → EMI approx. ₹17,260/month
(Note: These are illustrative figures. Always check with your bank for the exact amount.)
Benefits of a 7-Year Tenure Loan
- Lower monthly EMI – Easier on your monthly budget.
- Flexibility – Manageable for salaried individuals.
- Financial breathing space – You can handle other expenses without stress.
But remember: A longer tenure means you pay more interest overall.
How to Reduce EMI on ₹9 Lakh Loan?
- Improve your credit score before applying.
- Compare lenders – Don’t just go with the first bank.
- Opt for part-prepayment when you have extra cash.
- Choose balance transfer if another bank offers a lower rate.
Personal Loans in India vs USA
- In India: Interest rates range from 10%–18% p.a.
- In USA: Rates are usually 6%–12% APR depending on credit score.
Both countries follow the same EMI calculation formula, but your creditworthiness and lender choice decide how much you actually pay.
Common Mistakes to Avoid
- Borrowing more than needed.
- Ignoring processing fees.
- Not checking prepayment charges.
- Delaying EMI payments (hurts your credit score).
FAQs
Q1: What will be the EMI for ₹9 Lakh loan for 7 years?
It depends on the interest rate. At 12% p.a., it will be around ₹16,000 per month.
Q2: Can I reduce my EMI later?
Yes. By prepaying part of the loan or opting for a balance transfer at a lower rate.
Q3: Which bank gives the lowest EMI for personal loans?
In India, banks like SBI, HDFC, and ICICI are competitive. In the USA, lenders like SoFi, LightStream, and Discover offer low-rate personal loans.
Q4: Is it better to take a loan for 5 years or 7 years?
If you can afford higher EMIs, 5 years is better (less total interest). If you need lower monthly payments, go with 7 years.
Q5: Will missing one EMI affect my credit score?
Yes. Even one missed EMI can lower your credit score and add penalties.
Disclaimer: This article is for general information only. The interest rates and terms mentioned in it depend on the policies of the bank and NBFC. These may change from time to time. Before taking any type of loan, get complete information from your bank.