How To Calculate 3 Lakh Personal Loan EMI: Ultimate Guide



Calculating the EMI before grabbing a loan should be a non-negotiable activity. You can manage your financial crisis with a personal loan but you must plan out your repayment according to your ease and preferences to avoid future hassles. Keep reading to learn how to calculate a 3 lakh personal loan EMI.


A financial crisis can appear unannounced at any moment and the most convenient way to deal with it is through a personal loan. If you can meet your needs with an amount of 3 lakhs, it is quite easy to avail of it through any bank or NBFC. A 3 lakh personal loan for 5 years is a convenient amount. The tenure is reasonable and the loan amount is not too huge, therefore the lenders readily agree to provide up to 3 lakh personal loan. You can find many reputable lenders on the Buddy Loan website, India’s most trusted loan aggregating app.

But before you jump in and apply for a personal loan you first need to calculate your EMI per month and be completely aware of the liability you are taking on yourself.

What is an EMI?

EMI is short for Equated Monthly Instalment. It is a fixed amount of monthly payment made by the borrower to the lender on a specific date every month. It applies to the principal amount as well as the interest to make the repayment process easier.

How is EMI calculated?

The EMI is calculated on the basis of the following factors:

  • The principal amount
  • The interest rate
  • Repayment tenure

There are two primary methods used for calculating EMI

  • The Flat rate method

In this method, the whole loan amount, including all interest paid, is added to the principal, and the EMI is calculated by dividing the sum by the number of EMI payments, or the length of the loan term.

  • The reducing balance method

Using this method, the interest payment is calculated based on the remaining principal. It implies that the interest and principal payment components of each EMI change. At the start of the loan term, as a percentage of the outstanding loan, interest payments make up a higher share of the EMI.

The easiest way to calculate EMI is through an EMI calculator

How to calculate 3 lakh personal loan EMI?

If you take a loan of 3 lakh for the period of 5 years at an interest rate of 12% p.a., you can calculate your EMI as follows:

Step 1:

Calculate the monthly interest rate. If the annual interest rate is 12%, then the monthly rate will be 1%.

Step 2:

Calculate the EMI using the formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]


P = Principal loan amount (3,00,000)

R = Monthly interest rate (1%)

N = Repayment tenure (60 months)

By using our current values,

EMI = [3,00,000 x 1% x (1 + 1%)^60] / [(1 + 1%)^60 – 1] = 6466.67

So, a 3 Lakh personal loan EMI for 5 years at an interest rate of 12% p.a. is approximately 6466.67 per month.


Now that you know how to calculate your EMI, make it a point to determine your monthly EMI spending before applying for any loans. As you would be paying this fixed amount every month up to a certain point in the future, it is one of the crucial steps when it comes to financial planning. You can head over to Buddy Loan to get the best interest rates on personal loans for affordable monthly EMIs.

If you have any other questions or doubts about personal loans or EMI, write to us at

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