₹10 lakh personal loan EMI to pay off credit cards

₹10 lakh personal loan EMI to clear card dues: ₹33,694 for 3 years

A ₹10 lakh personal loan at 13% has an EMI of ₹33,694 for 3 years. You pay ₹2,12,982 as interest and ₹12,12,982 in all. 13% is an example rate, kept a little high because heavy card dues can pull your credit score down. What you get depends on your lender, your income and your repayment record.

Balaji, 36, a sales manager in Coimbatore, takes home ₹1,10,000 a month. Over two years he ran up ₹10 lakh on three credit cards, first for his father's hospital stay, then a house shift, and then by paying only the minimum. Card interest is often around 3.5% a month, which on ₹10 lakh is ₹35,000 a month before a single rupee of the dues goes down.

The same amount over different periods

Loan tenure	Monthly EMI	Total interest	Total amount payable
1 year	₹89,317	₹71,807	₹10,71,807
2 years	₹47,542	₹1,41,004	₹11,41,004
3 years	₹33,694	₹2,12,982	₹12,12,982
4 years	₹26,827	₹2,87,720	₹12,87,720
5 years	₹22,753	₹3,65,184	₹13,65,184

Worked out at 13% a year. The row in bold is the one in the calculator above.

Repayment schedule (yearly)

Year	Principal paid	Interest paid	Total paid	Balance left
1	₹2,91,278	₹1,13,050	₹4,04,327	₹7,08,722
2	₹3,31,483	₹72,844	₹4,04,327	₹3,77,239
3	₹3,77,239	₹27,089	₹4,04,327	₹0

Less than the card interest, and done in 3 years

Put the two side by side. On the cards, about ₹35,000 a month goes only to interest. With the loan, ₹33,694 a month pays the interest and the full ₹10 lakh, and the debt ends after 36 EMIs. It takes about 31% of Balaji's take-home pay.

The 5-year EMI of ₹22,753 looks easier, but it costs ₹1,52,202 more in interest than 3 years. The bigger risk is the cards themselves. If they are used again after the loan clears them, he ends up with an EMI and fresh card dues. Once they are paid, get the limits cut or close the extra cards.

Frequently asked questions

What is the EMI on a ₹10 lakh personal loan for 5 years?

At 13%, the 5-year EMI is ₹22,753. Interest totals ₹3,65,184 and you repay ₹13,65,184. That is ₹10,941 less each month than 3 years, but ₹1,52,202 more in interest.

How much is the 4-year EMI on ₹10 lakh?

At 13% for 4 years, the EMI is ₹26,827 and interest is ₹2,87,720. It is a fair middle if ₹33,694 feels tight, and the card debt is still gone a year sooner than with 5 years.

What if I get 12% instead of 13%?

The 3-year EMI falls to ₹33,214 and interest to ₹1,95,715. That saves ₹17,267 over the loan. Check your credit report before you apply, since one wrong entry can cost you that much.

Can I clear ₹10 lakh in 2 years instead?

At 13%, the 2-year EMI is ₹47,542 with ₹1,41,004 interest. That is ₹71,978 less interest than 3 years, but it takes about 43% of a ₹1,10,000 salary.

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