Find the monthly EMI for a personal loan. These loans usually have no security, so they carry a higher interest rate.
Uses the standard reducing-balance EMI formula.
Personal loans have no security backing them, so lenders charge a higher rate to cover this extra risk.
EMI: P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
Why are personal loan rates so much higher than home loan rates?
Personal loans have no security. If you cannot pay, the lender has nothing to take back. This extra risk is why the interest rate is higher.