About this tool
Personal loans are unsecured, so rates are higher and lenders charge a processing fee on top. Add the fee here to see the real cost of the loan, not just the EMI.
What a personal loan really costs
Personal loans are quick to get because they need no collateral, and that convenience is exactly why they cost more than most other borrowing. The interest rate is only part of the price. Lenders often charge a processing fee of one to three percent, and GST at 18% is added to that fee. On a ₹5 lakh loan, a 2% fee plus GST takes ₹11,800 off the amount you receive, even though you repay interest on the full ₹5 lakh.
Enter the fee in this calculator to see the true cost. For ₹5 lakh at 13% over three years, the EMI is about ₹16,850 and total interest is about ₹1.06 lakh. Add the fee and your real cost of borrowing rises further. When two lenders quote similar rates, the one with the lower fee and lower foreclosure charges usually works out cheaper.
Think about the purpose before you apply. Personal loans make sense for genuine needs such as a medical bill or a short gap before money you are sure of arrives. They are a poor way to fund holidays or gadgets, because you are still paying for them long after the enjoyment has passed. If you already have a credit card balance at a much higher rate, a personal loan to clear it can save money, provided you stop adding new spending to the card. Lenders also check your credit score, and applying to many banks at once can lower it, so compare offers here first and apply only where the numbers make sense.
How to use it
- Enter your numbers in the boxes, or drag the sliders.
- Read the result on the right. It updates as you type.
- Open the year-by-year table, if shown, to see how the numbers change over time.
- Use 'Copy link with these values' to save the calculation or send it to someone.
Questions
What is a typical personal loan processing fee?
Most lenders charge 0.5% to 3% of the loan amount plus 18% GST on the fee. It is usually deducted from the amount you receive.
Can I prepay a personal loan?
Usually yes, after a lock-in of 6–12 EMIs. Fixed-rate personal loans can carry a foreclosure charge of 2–5% of the outstanding amount, so check your loan agreement.
Last reviewed 16 October 2026. Results are estimates for planning. Check important figures with your bank, employer or a qualified adviser.