What is EMI and How is it Calculated?
EMI (Equated Monthly Installment) is the fixed amount you pay every month to the bank or lender until your loan is fully repaid. It includes both:
- Principal – The loan amount (₹15 Lakh in this case).
- Interest – The cost charged by the bank for lending you the money.
The formula used to calculate EMI 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 (₹15,00,000)
- R = Monthly Interest Rate (Annual Interest Rate ÷ 12 ÷ 100)
- N = Loan Tenure in Months
EMI Breakdown for a ₹15 Lakh Loan
Below is an approximate EMI calculation based on different interest rates and tenures.
| Loan Amount | Tenure | Interest Rate | Monthly EMI (Approx.) | Total Interest | Total Payment |
|---|---|---|---|---|---|
| ₹15,00,000 | 3 Years (36 months) | 10% | ₹48,387 | ₹2,42,000 | ₹17,42,000 |
| ₹15,00,000 | 5 Years (60 months) | 11% | ₹32,739 | ₹4,64,000 | ₹19,64,000 |
| ₹15,00,000 | 7 Years (84 months) | 12% | ₹26,620 | ₹7,38,000 | ₹22,38,000 |
The longer the tenure, the smaller the EMI—but the higher the overall interest.
Factors That Affect Your EMI
- Interest Rate – Lower interest rates reduce your EMI significantly.
- Loan Tenure – Longer tenure means smaller EMIs but more total interest.
- Credit Score – A good CIBIL score (750+) helps you get better loan offers.
- Income & Eligibility – Banks decide EMI affordability based on your income.
Example: EMI for ₹15 Lakh Loan at Different Rates
- At 10% for 5 years, EMI = ~₹31,870 per month.
- At 12% for 5 years, EMI = ~₹33,367 per month.
- At 14% for 5 years, EMI = ~₹34,910 per month.
How to Reduce EMI on Your 15 Lakh Personal Loan
- Choose a longer tenure if you want smaller monthly EMIs.
- Compare lenders before applying – interest rates vary.
- Improve your credit score for better offers.
- Part-prepay your loan when you have extra funds.
Best Banks & NBFCs for a ₹15 Lakh Personal Loan
Some top lenders offering personal loans in India include:
- HDFC Bank – Attractive rates for salaried individuals.
- ICICI Bank – Flexible repayment tenure.
- Axis Bank – Quick processing with minimal paperwork.
- SBI (State Bank of India) – Competitive interest rates.
- Bajaj Finserv – Instant personal loan approval.
Final Thoughts
A ₹15 Lakh personal loan can be a big financial commitment, but with the right planning, you can manage it easily. Always compare different banks, check your EMI affordability, and choose a tenure that balances your monthly budget with overall interest savings.
By understanding the monthly EMI breakdown for a ₹15 Lakh personal loan, you can make smarter financial decisions and avoid future stress.
(FAQs)
Q1. What will be the EMI for ₹15 Lakh loan for 5 years?
At 11% interest, your EMI will be around ₹32,739 per month.
Q2. Can I reduce my EMI after taking the loan?
Yes, by transferring your loan to another bank with a lower interest rate or by making part prepayments.
Q3. What is the minimum CIBIL score required for a ₹15 Lakh personal loan?
Most banks require a CIBIL score of 750 or above.
Q4. Which bank gives the lowest EMI for a ₹15 Lakh loan?
Public sector banks like SBI often provide lower EMIs due to competitive interest rates.
Q5. Is it better to choose a short or long tenure for repayment?
A short tenure saves on interest but comes with higher EMIs, while a long tenure reduces EMI but increases total interest.
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.