What is the EMI for 5 Lakh Personal Loan?

If you borrow Rs. 5 lakh from Kotak Mahindra Bank, the EMI for 5 lakh personal loan depends on the interest rate you’re given and the repayment tenure you select. For this loan amount the interest rate starts at 10.99% p.a. For example: if the rate is roughly 10.99% and you take the loan over 5 years (60 months), you would pay an EMI of approximately Rs. 10,869 per month.

Why Does the Personal Loan EMI for 5 Lakhs Varies?

If you opted for a shorter tenure, say 3 years, the monthly payment would increase correspondingly: for the same principal at a slightly higher rate it could be around Rs. 16,300 or more per month.

The reason the 5 lac personal loan EMI varies so much is because two key factors influence it: 

1. The interest rate (even small differences like 11 % vs 12 % shift the monthly outflow) and

2. The tenure (longer tenure → lower monthly payment but higher total interest paid, shorter tenure → higher monthly payment but you finish sooner).

Also, note that while 10.99% is the starting rate, your actual rate may be higher depending on your credit score, employment status, income, and other risk factors.

And in addition to EMI you must consider processing fees (up to ~5% of the loan amount) and other charges which affect your effective borrowing cost.

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The EMI depends on the chosen tenure and interest rate usually between 10.99% and 16.99% p.a. So, what is the EMI for 5 lakh personal loan? At the lowest interest rate of 10.99%, the EMI amounts for Rs. 5 Lakhs are approximately:

1. 1 year: Rs. 44,188

2. 2 years: Rs. 23,301

3. 3 years: Rs. 16,366

4. 4 years: Rs. 12,920

Shorter tenure e.g., 1 to 2 years leads to higher EMIs but lower total interest paid. Longer tenure (up to 6 years, the bank’s max) means lower monthly outgo, but you’ll pay more interest overall.

Choose tenure based on your budget preferably not over 50 to 60% of your take-home pay. Check your interest rate slab with excellent CIBIL and stable income, you may lock in the 10.99% rate.

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The EMI for 5 lakh personal loan will depend on the rate of interest of the bank. You must be aware that not all banks have set the same interest rate for personal loans. For example, HDFC has an interest rate of 10.75% to 24% whereas Axis Bank has an interest rate starting from 10.49% onwards.

What will be the EMI for 5 Lakh Personal Loan?

To find out what is the EMI for 5 lakh personal loan, you have two options:

• Calculate the EMI amount manually

• Calculate the EMI amount using the bank’s EMI option, which is usually available on their website

When I visited the HDFC bank to find out what would be my EMI amount for a Rs 5 lakh personal loan, I was advised to

• Visit the

  HDFC portal

• Enter the amount, tenure and interest rate

• Click on the Calculate option and get it

So I entered 

• Amount = 5,00,000

• Tenure = 5

• Interest Rate = 10.75% (ask the official about it, as it may vary depending on your needs)

My EMI came to around Rs 10,809. If you want, you can calculate it manually. Here is the formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

• P here stands for the principal amount

• R stands for the rate of interest at which you are availing the loan

• And N stands for the time period (in months)

Let me share what will be the EMIs for 1 to 5 years with the same principal amount and interest rate here:

If you have an account with some other bank, visit their official website and get to know about your EMI amount there.

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