How this works
Personal loans are unsecured, so lenders typically charge a higher rate and shorter tenure than a secured loan like a mortgage or car loan — enter your lender's actual rate and tenure here; the reducing-balance EMI math itself is the same formula used across all these loan tools.
Common questions
Why is my personal loan rate higher than my friend's car loan rate?
Personal loans aren't backed by collateral, so lenders price in more risk with a higher rate — a car or home loan is secured against the asset, which usually gets a lower rate.
Does this account for a prepayment penalty?
No — enter your effective rate and tenure as quoted; if your lender charges a prepayment penalty, that's a separate cost this calculator doesn't model, and you'd need to check your loan agreement for that figure.