What is a Personal Loan EMI?
EMI (Equated Monthly Installment) is the fixed monthly amount you pay to the bank or lender until the loan is fully repaid. It includes both principal (loan amount) and interest (lender’s charge).
The formula used for EMI calculation is:
EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]
- P = Loan Amount (₹10 Lakh)
- R = Rate of Interest (monthly)
- N = Tenure (in months, here 48 months for 4 years)
Factors That Affect EMI on ₹10 Lakh Loan for 4 Years
When you take a loan, the EMI amount is not the same for everyone. It depends on:
- Interest Rate – Usually ranges between 10% and 16% for personal loans.
- Loan Tenure – Longer tenure means smaller EMI but more interest paid overall.
- Credit Score – A higher CIBIL score (750+) helps you get lower interest rates.
- Income & Job Stability – Banks check your repayment capacity before approval.
- Bank/NBFC Policies – Different lenders have different offers and processing fees.
Average EMI for ₹10 Lakh Loan for 4 Years
While exact EMI depends on the interest rate offered to you, here’s a quick idea of how much you may pay:
| Interest Rate | Approx. EMI (₹) | Total Payment (₹) | Total Interest (₹) |
|---|---|---|---|
| 10% | 25,000 | 12,00,000 | 2,00,000 |
| 12% | 26,300 | 12,62,000 | 2,62,000 |
| 14% | 27,400 | 13,15,000 | 3,15,000 |
| 16% | 28,600 | 13,73,000 | 3,73,000 |
Use any Personal Loan EMI Calculator online to get exact figures as per your interest rate.
Best Banks/NBFCs for Personal Loan in India (2025)
Here are some of the popular lenders offering personal loans in India:
- HDFC Bank – Attractive interest rates, flexible repayment.
- ICICI Bank – Quick disbursal, minimal documentation.
- State Bank of India (SBI) – Trusted, affordable rates for salaried employees.
- Axis Bank – Customizable repayment plans.
- Bajaj Finserv – Instant approval, pre-approved offers.
Tips to Reduce Your EMI Burden
- Compare Banks – Always check multiple lenders before applying.
- Improve Credit Score – Pay bills on time, clear old debts.
- Choose Longer Tenure – Lowers EMI, but remember total interest increases.
- Go for Balance Transfer – Switch to a bank offering lower interest.
- Make Part Prepayments – Reduce outstanding principal whenever possible.
FAQs
Q1. What is the EMI for a ₹10 Lakh personal loan for 4 years?
The EMI depends on the interest rate. On average, it ranges between ₹25,000 to ₹28,500 per month.
Q2. Can I get a ₹10 Lakh loan without collateral?
Yes, personal loans are usually unsecured, so you don’t need to pledge assets.
Q3. What is the minimum salary required for a ₹10 Lakh loan?
Most banks prefer a salary of ₹35,000 to ₹50,000 per month, but it varies by lender.
Q4. How can I lower my personal loan EMI?
By improving your credit score, opting for a longer tenure, or transferring to a bank with a lower rate.
Q5. Is it better to take a 4-year or 5-year loan?
A 4-year loan saves on interest, while a 5-year loan gives you lower EMIs but higher total cost.
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.