Calculate your emergency loan EMI
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance at year end |
|---|
Reducing-balance method. Results are estimates for planning; the lender's Key Fact Statement is final. Insurance, legal and other charges are not included.
In an emergency the speed of money matters more than the rate, but the EMI stays with you for years. Secured routes such as gold or a deposit usually give a lower rate than an unsecured instant loan.
Emergency Loan at a glance
The figures the calculator starts with come from these typical ranges. Change them to match the offer in front of you.
| Feature | What to expect |
|---|---|
| Typical loan amount | Roughly ₹10,000 to ₹10 lakh, depending on the route you choose |
| Tenure | From a few months to 5 years; shorter tenures cost less in total interest |
| Indicative interest rate | Roughly 11% to 36% a year; secured routes are usually cheaper |
| Processing fee | Commonly 1% to 5% of the amount, plus GST; some routes charge less |
| Security / collateral | Unsecured for personal loans; gold, deposits or securities for cheaper routes |
| Typical time to disbursal | Minutes to 2 working days, based on the source and document readiness |
From our Emergency Loan guide. Ranges are indicative; your offer may differ.
Emergency Loan EMI table at 15%
Monthly EMI for common emergency loan amounts at an example rate of 15% a year, on the reducing-balance method lenders use. Read across a row to see how a longer tenure lowers the EMI, and remember that it raises the total interest: on ₹2.5 lakh, the interest is ₹30,732 over 18 months but ₹61,988 over 3 years.
| Loan amount | EMI for 18 months | EMI for 2 years | EMI for 3 years |
|---|---|---|---|
| ₹75,000 | ₹4,679 | ₹3,636 | ₹2,600 |
| ₹1.5 lakh | ₹9,358 | ₹7,273 | ₹5,200 |
| ₹2.5 lakh | ₹15,596 | ₹12,122 | ₹8,666 |
| ₹3 lakh | ₹18,715 | ₹14,546 | ₹10,400 |
How the interest rate changes your emergency loan EMI
Your rate depends on your credit score, income, the lender and the loan details. On ₹1.5 lakh over 2 years, the gap between the lowest and highest indicative rate is ₹44,782 in total repayment, which is why it pays to compare offers before you accept one.
| Interest rate | Monthly EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 11% | ₹6,991 | ₹17,788 | — |
| 15% | ₹7,273 | ₹24,552 | +₹6,764 |
| 25.5% | ₹8,043 | ₹43,042 | +₹25,254 |
| 36% | ₹8,857 | ₹62,571 | +₹44,782 |
The real cost of an emergency loan: fees and APR
The EMI covers interest and principal only. Lenders also charge a processing fee, commonly around 1% to 5% of the amount on emergency loans, plus 18% GST, and it is usually deducted from the money you receive. Because you pay the EMI on the full amount but receive less, the annual percentage rate (APR) is higher than the interest rate. For ₹1.5 lakh at 15% over 2 years:
| Processing fee | Fee incl. GST | Money in hand | APR |
|---|---|---|---|
| 1% + GST | ₹1,770 | ₹1,48,230 | 16.21% |
| 3% + GST | ₹5,310 | ₹1,44,690 | 18.71% |
| 5% + GST | ₹8,850 | ₹1,41,150 | 21.29% |
Every lender must show the APR and total repayable amount in the Key Fact Statement before you sign. Compare offers on that figure, not on the headline rate. At a 3% fee, this loan's APR is about 18.71%.
Can you afford this EMI?
Lenders usually keep all your EMIs together within about 40% to 50% of net monthly income. For an EMI of ₹7,273 with no other loans, that means a take-home income of at least ₹15,000 at the 50% limit, and about ₹19,000 to stay within a more comfortable 40%. Existing EMIs, including credit card EMIs, reduce what is left for this one.
Borrow for the emergency only, not the round number above it, and plan to part-prepay from insurance claims or bonuses once the crisis has passed.
Prepay to cut the interest
Paying a lump sum towards the principal reduces the interest for the rest of the loan. On ₹1.5 lakh at 15% over 2 years, a part-prepayment of ₹15,000 after the first year:
- with the EMI kept at ₹7,273, closes the loan about 2 months early and saves roughly ₹2,263 of interest;
- with the tenure kept, cuts the EMI to about ₹5,919 and saves roughly ₹1,246 of interest.
Keeping the EMI and shortening the tenure saves more. Floating-rate loans to individuals cannot carry prepayment charges; fixed-rate loans may, so check your agreement first.
How emergency loan EMI is calculated
Lenders use the reducing-balance formula: EMI = P × R × (1 + R)N ÷ ((1 + R)N − 1), where P is the loan amount, R is the yearly rate divided by 12 and by 100, and N is the number of monthly instalments.
For ₹1.5 lakh at 15% over 24 months, R is 0.0125 and the EMI comes to ₹7,273. In the first month, ₹1,875 of it is interest and ₹5,398 repays principal. Each month the balance falls, so the interest part shrinks and the principal part grows. In the first year you pay about ₹17,856 in interest, which is 20% of what you pay in that period. The year-by-year schedule in the calculator shows the full split.
Before you apply for an emergency loan
The calculator tells you what the loan costs. Before you apply, check whether you qualify, what documents lenders ask for and the mistakes borrowers most often make.
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Published rates, processing fees, tenure and prepayment terms side by side, taken from each lender's own website.
Emergency Loan EMI: frequently asked questions
What is the EMI for an emergency loan of ₹1,50,000?
At 15% a year for 2 years, the EMI is ₹7,273 and the total interest is ₹24,552. Over 18 months the EMI rises to ₹9,358 but the interest falls to ₹18,439.
How is emergency loan EMI calculated?
With the reducing-balance formula EMI = P x R x (1+R)^N / ((1+R)^N - 1), where R is the monthly rate and N the number of months. Interest is charged only on the balance still outstanding, so the interest part of each EMI falls over time.
Does the emergency loan EMI include the processing fee?
No. The EMI covers interest and principal. The processing fee, usually around 1% to 5% of the amount plus 18% GST, is generally deducted upfront. Use the APR in the Key Fact Statement to compare total cost.
How can I reduce my emergency loan EMI?
Choose a longer tenure, borrow less, or get a lower rate by improving your credit score or comparing lenders. A longer tenure lowers the EMI but raises the total interest, so pick the shortest tenure you can comfortably afford.
Is the rate in this calculator my actual emergency loan rate?
No. 15% is an example within the indicative range of about 11% to 36%. Your rate depends on the lender, your credit score, income and the loan details. Enter the rate in your own offer for an exact EMI.
Does prepaying an emergency loan save money?
Yes. Here, prepaying ₹15,000 after one year saves roughly ₹2,263 of interest if you keep the EMI. Floating-rate loans to individuals cannot carry prepayment charges; fixed-rate loans may.
Rates, fees and limits are indicative ranges for India, reviewed on the date above. KhatuLoans is not a lender and does not decide approval or pricing. Read our editorial policy and how we make money.
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.