What is the EMI for a ₹10 lakh personal loan at 10.5% for 5 years?

The EMI would be approximately ₹21,494 per month. Over 5 years (60 months), you would pay a total of ₹12,89,640 — meaning ₹2,89,640 goes toward interest.

Which bank offers the lowest personal loan interest rate?

As of 2025, PNB and SBI offer some of the lowest personal loan rates starting around 10.40–10.50%. However, your actual rate depends on your credit score, income, and employer.

Is it better to choose a shorter or longer EMI tenure?

A shorter tenure means higher monthly EMIs but significantly less total interest. A longer tenure eases monthly cash flow but costs much more overall. Choose the shortest tenure where the EMI stays below 40% of your take-home pay.

Can I reduce my EMI after taking the loan?

Yes. You can make partial prepayments to reduce the outstanding principal, which effectively lowers future EMIs or tenure. You can also request a balance transfer to another bank offering lower rates.

How much total interest will I pay on a ₹10 lakh loan for 10 years?

At 10.50% interest, you would pay approximately ₹6,19,160 in total interest over 10 years, making the total repayment around ₹16,19,160.

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EMI for 10 Lakh Loan — Complete Breakdown by Bank & Tenure

Compare EMI for a ₹10 lakh loan across SBI, HDFC, ICICI and more. See monthly payments for 3, 5, 7 and 10-year tenures.

15 May 2025 8 min read

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Understanding EMI on a ₹10 Lakh Loan

An Equated Monthly Instalment (EMI) is the fixed amount you pay to the bank every month until your loan is fully repaid. It consists of two parts — the principal repayment and the interest component. In the early months, a larger share goes toward interest; over time the principal portion increases.

The EMI for any loan depends on three factors: the loan amount (₹10 lakh in this case), the interest rate offered by the bank, and the tenure you choose. The standard EMI formula is:

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Even a small difference in interest rate — say 0.5% — can translate to thousands of rupees over the loan tenure.

EMI Comparison: Major Banks at a Glance

Here is what your monthly EMI would look like for a ₹10 lakh loan at current personal loan rates offered by major Indian banks (rates as of 2025).

Bank	Interest Rate	3-Year EMI	5-Year EMI	7-Year EMI	10-Year EMI
SBI	10.50%	₹32,502	₹21,494	₹16,819	₹13,493
HDFC Bank	10.75%	₹32,614	₹21,616	₹16,953	₹13,641
ICICI Bank	10.85%	₹32,659	₹21,666	₹17,008	₹13,701
Axis Bank	10.99%	₹32,723	₹21,735	₹17,082	₹13,781
PNB	10.40%	₹32,456	₹21,444	₹16,764	₹13,432
Kotak Mahindra	10.99%	₹32,723	₹21,735	₹17,082	₹13,781
Bank of Baroda	10.60%	₹32,547	₹21,543	₹16,873	₹13,554
Canara Bank	10.55%	₹32,525	₹21,519	₹16,846	₹13,524

How Tenure Affects Your Total Interest

Choosing a longer tenure reduces your monthly EMI, but it dramatically increases the total interest you pay. For a ₹10 lakh loan at 10.50%:

5-year tenure: EMI of ₹21,494. Total interest paid = ₹2,89,640. Total amount = ₹12,89,640.
10-year tenure: EMI of ₹13,493. Total interest paid = ₹6,19,160. Total amount = ₹16,19,160.

That is a difference of ₹3,29,520 in interest alone — nearly 33% of the original loan. The monthly saving of ₹8,001 comes at a steep long-term cost. Always choose the shortest tenure whose EMI you can comfortably afford — ideally keeping your EMI below 40% of your take-home salary.

Personal Loan vs Home Loan EMI for ₹10 Lakh

If you need ₹10 lakh, the loan type matters enormously. Home loans carry much lower interest rates because the property serves as collateral.

Loan Type	Interest Rate	5-Year EMI	10-Year EMI	Total Interest (10yr)
Home Loan	8.50%	₹20,517	₹12,399	₹4,87,880
Home Loan	9.00%	₹20,758	₹12,668	₹5,20,160
Personal Loan	11.00%	₹21,742	₹13,775	₹6,53,000
Personal Loan	14.00%	₹23,268	₹15,527	₹8,63,240

5 Ways to Reduce Your EMI

Improve your credit score: A CIBIL score above 750 can get you 0.5–1% lower rates, saving tens of thousands over the tenure.
Compare across banks: Don't accept the first offer. Even 0.25% less on a 20-year home loan saves over ₹2 lakh.
Make partial prepayments: Prepaying even ₹50,000 per year can reduce a 20-year loan to 14 years and save lakhs in interest.
Negotiate with your bank: Existing customers with good repayment history can request rate reductions, especially when RBI cuts repo rates.
Choose floating rate wisely: Floating rates are currently lower than fixed, but they can rise. Lock in when rates are at cyclical lows.