Personal Loan Interest Rate & Charges

Choosing personal loan tenure is a critical step, let’s understand why? As the loan tenure increases, your monthly EMI becomes lower, making it easier on your monthly budget. However, this also means you end up paying more interest over time. On the other hand, a shorter tenure results in higher EMIs, which can be financially demanding, but it helps you save significantly on interest.

That’s why it’s important to strike a balance between:

• A manageable monthly EMI, and
• Minimizing the total interest outgo.

Choose a tenure that aligns with your repayment capacity while keeping your overall cost of borrowing in check.

Here are the approximate EMI and total repayment amounts (rounded) across different loan amounts and tenure options at a starting interest rate of 11.49% p.a..

Note: Actual EMI and interest may vary based on your credit profile, chosen tenure, and final approved interest rate.

A part prepayment means you pay a lump sum towards your loan before the scheduled end of your tenure, without fully closing the loan. This can significantly reduce your interest burden and help you repay your loan faster.

How Does Part Prepayment Work?

When you make a part prepayment:

• The amount is directly deducted from your outstanding principal.
• Since interest is charged on the remaining principal (under the reducing balance method), your future EMIs will have lower interest.
• Your EMI remains the same and we reduce your loan tenure.

Example: Let’s say you have taken a personal loan of ₹5,00,000 at an interest rate of 12% p.a. for a tenure of 48 months.

• Your regular EMI: ₹13,167
• Total Interest Payable: ₹1,32,000
• Total Repayment: ₹6,32,000

Let’s say you make a part prepayment of ₹1,00,000 after 12 months of regular EMI payments. We apply this amount directly towards your outstanding principal, while keeping your EMI amount unchanged.

• New EMI: ₹13,167
• New Tenure: 36 months
• Total interest payable: ~ ₹1,05,965
• Interest Saved: ₹32,000
• Total Repayment: ₹6,00,000

As a result:

• Your loan tenure gets reduced, so you’ll repay the loan faster
• Your total interest payout decreases, helping you save more over the life of the loan

In simple terms, you become debt-free sooner and pay less interest than what was originally planned when you took the loan.

Foreclosure is when you choose to close your personal loan early by paying off the full remaining balance in one go. It helps you save on interest and become debt-free faster—and with Mirae Asset Financial Services, you can do it anytime with zero extra charges.

Let’s say you have taken a personal loan of ₹5,00,000 at an interest rate of 12% p.a. for a tenure of 48 months.

• Your regular EMI: ₹13,167
• Total Interest Payable: ₹1,32,000
• Total Repayment: ₹6,32,000
• Total Interest (if paid full term): ~₹1,32,000
• Total Repayment (if paid full term): ₹6,32,000

Foreclosure After 12 EMIs, Now, you decide to foreclose by paying the remaining principal in one go. After 12 months:

• You’ve paid: ₹1,58,004 (₹13,167 × 12 EMIs)
• Out of that, around ₹48,000 went toward interest
• Your remaining principal is ~₹3,90,000
• Total Repayment: ₹5,48,004
• Interest Saved: ₹83,996

You save over ₹83,000 in interest by foreclosing after 12 months.