EMI = P × r × (1+r)n / ((1+r)n − 1)
Use the free Bandhan Bank Personal Loan EMI Calculator above to find out your exact monthly installment before you apply. Enter the loan amount, interest rate, and tenure, and the calculator instantly shows your EMI, total interest payable, and total repayment amount.
What Is a Personal Loan EMI?
A personal loan EMI (Equated Monthly Installment) is the fixed monthly amount you pay until the loan is fully repaid. Each payment covers two components: a portion that reduces your outstanding principal and a portion that pays the interest accrued that month. In the initial months, interest takes up a larger share of the EMI; as your outstanding balance reduces over time, the interest component shrinks and the principal component grows.
Personal loans are unsecured, meaning you do not need to pledge any collateral or arrange a guarantor. This makes them faster to obtain than home or vehicle loans, though the interest rate is higher because the lender takes on credit risk without any asset as backing.
In my 7 years of working with salaried professionals, I have noticed that many people pick a loan tenure that minimises their monthly EMI without thinking through the total interest cost over the full tenure. Sometimes, a slightly shorter tenure with a different rate bracket saves you money overall, even if the monthly outflow is higher.
EMI Calculation Formula
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1)
Where P = Principal loan amount, r = Monthly interest rate (Annual rate divided by 12 divided by 100), n = Loan tenure in months. This is the standard reducing-balance formula applied by all scheduled commercial banks in India as per RBI guidelines on fair lending practices.
Worked Example
Kavya, an HR manager from Bhopal, needs Rs. 2,50,000 to fund her sister's wedding expenses and cover a medical procedure. She qualifies as a salaried applicant with a tenure of more than 3 years and applies for a Bandhan Bank personal loan at 9.47% per annum for 4 years (48 months).
Monthly rate = 9.47 / 12 / 100 = 0.00789. Tenure = 48 months.
One thing worth noting: if Kavya had chosen a 3-year tenure instead, the applicable rate for salaried borrowers would be 12.15% per annum, giving an EMI of Rs. 8,321 and a total interest of Rs. 49,574. The shorter tenure costs slightly less in total interest (by about Rs. 1,732), but the monthly outflow is Rs. 2,044 higher. Whether the shorter tenure makes sense depends entirely on whether that higher EMI stays within 40 to 45 percent of her take-home salary. Since personal loans carry no tax deduction for personal use, planning your repayment schedule alongside your PPF or other tax-saving investments becomes more important when you are simultaneously managing loan outflows.
How to Use This EMI Calculator
Step-by-Step Guide
Step 1: Enter the loan amount. Type the amount you plan to borrow. Bandhan Bank personal loans are available from Rs. 50,000 up to Rs. 25 lakh, depending on your income, credit score, and employer profile.
Step 2: Enter the interest rate. Use the rate from your sanction letter or the current indicative rate. Salaried borrowers are eligible for rates starting at 9.47% per annum for tenures above 3 years, and 12.15% per annum for tenures up to 3 years. If you have a high credit score, you can also look at IDFC FIRST Bank and other lenders to compare your options before committing.
Step 3: Enter the tenure. Choose between 1 and 5 years (12 to 60 months). Bandhan Bank's rate structure rewards longer tenures with a lower rate for salaried borrowers, so experiment with 3 years versus 4 years to see which combination of EMI and total interest works best for your budget.
Step 4: Read the result. The calculator instantly displays your monthly EMI, total interest payable, and total repayment amount. Use these figures to decide whether the loan fits your monthly cash flow before applying.
Bandhan Bank Personal Loan: Key Features
| Feature | Details |
|---|---|
| Interest Rate (Salaried) | 9.47% p.a. (tenure above 3 years); 12.15% p.a. (tenure up to 3 years) |
| Interest Rate (Self-Employed) | 10.10% p.a. (tenure above 3 years); 12.55% p.a. (tenure up to 3 years) |
| Loan Amount | Rs. 50,000 to Rs. 25 lakh |
| Tenure | 12 to 60 months (1 to 5 years) |
| Processing Fee | Up to 3% of loan amount |
| Foreclosure Charges | 4% of outstanding principal within 12 months; 2.5% after 12 months; NIL for loans of Rs. 10 lakh and above (after 12 EMIs, using own funds) |
| Part Payment | Permitted once a year, up to 25% of outstanding principal, after 12 EMIs are completed |
| Minimum Age | 21 years (salaried); 23 years (self-employed) |
| Maximum Age at Maturity | 60 years (salaried); 65 years (self-employed) |
| Disbursal Time | Within 2 working days |
| Collateral Required | None (unsecured loan) |
For the complete and current schedule of charges, visit the Bandhan Bank Personal Loan page on the official Bandhan Bank website.
Bandhan Bank Personal Loan Schemes
Personal Loan for Salaried Individuals
Salaried employees, including those working with private companies, public sector undertakings, and government organisations, can apply for a Bandhan Bank personal loan at a rate starting from 9.47% per annum for tenures exceeding 3 years. The lower rate for longer tenures is a distinguishing feature of Bandhan Bank's personal loan structure, since most lenders do the opposite and charge more for longer commitments. Salaried applicants need a minimum net monthly salary as stipulated by the bank, a PAN card, last 3 months' salary slips, and Form 16. Loan processing is completed within 2 working days, with an option for doorstep document collection in select cities.
Personal Loan for Self-Employed Professionals
Self-employed professionals, including doctors, chartered accountants, and architects, and self-employed non-professionals such as traders and manufacturers, are also eligible for Bandhan Bank personal loans. The rate for self-employed applicants starts at 10.10% per annum for tenures above 3 years and 12.55% per annum for tenures up to 3 years. These applicants need to submit income tax returns for the last 2 years, along with balance sheet, profit and loss account, and income computation. The minimum age at the time of application is 23 years, and the maximum age at loan maturity is 65 years. Bandhan Bank's willingness to lend to self-employed applicants under standard personal loan terms (not just business loans) makes it a useful option for freelancers and consultants who need an unsecured personal loan.
Personal Loan Balance Transfer
If you are currently repaying a personal loan from another bank at a higher interest rate, Bandhan Bank offers a balance transfer option where your outstanding balance is shifted to Bandhan Bank at a lower rate. This can meaningfully reduce your monthly EMI and total interest outflow if the rate differential is 1.5 percentage points or more. The transfer is subject to the same eligibility criteria as a fresh application, and a new processing fee applies on the transferred outstanding amount. Before opting for a balance transfer, calculate whether the processing fee savings are worth the cost by running both scenarios through the calculator above. If you are also considering shifting a home loan, compare costs side by side using the SBI Home Loan EMI Calculator to understand the benchmark rate against which Bandhan Bank's offer should be evaluated.
What Affects Your EMI
Loan Amount
A higher loan amount directly increases your EMI at any fixed rate and tenure. Before deciding how much to borrow, calculate your total monthly EMI burden across all existing loans and credit card minimum payments. The standard guideline is that total EMI commitments should not exceed 40 to 45 percent of your net take-home salary. Borrowing more than you need in one go is a common mistake, especially when low interest rate offers feel tempting. Extra principal also means extra interest paid over the entire tenure, so borrow only what your immediate need requires. The Mutual Fund Return Calculator can help you evaluate whether parking surplus funds in a SIP is a better long-term move than borrowing and repaying at 9 to 12 percent interest.
Interest Rate
Bandhan Bank's rate structure has an unusual feature: salaried borrowers who choose a tenure above 3 years are offered a lower rate (9.47% p.a.) than those who choose a tenure of 3 years or less (12.15% p.a.). This is the opposite of how most banks price personal loans, where longer tenures carry higher rates to account for extended credit risk. The practical implication is that for the same loan amount, extending your tenure from 3 years to 4 years may actually reduce both your monthly EMI and your total interest cost (as seen in Kavya's example above), provided you qualify for the salaried lower-rate bracket. Your CIBIL score, income stability, and debt-to-income ratio also influence the specific rate offered within this range.
Loan Tenure
Given Bandhan Bank's rate structure, tenure selection requires a slightly different calculation than at most lenders. Opting for 4 to 5 years gives you both a lower rate and a lower EMI compared to a 3-year loan. However, if you expect to receive a significant lump sum (such as a gratuity payout, annual bonus, or policy maturity amount) during the loan tenure and plan to use it for prepayment, a shorter tenure may save you on both EMIs and prepayment charges since the 4% charge applies only within the first 12 months. Use the Gratuity Calculator to estimate your payout and time your prepayment decision accordingly.
Tax Benefits on Bandhan Bank Personal Loan
Personal loans used for personal purposes such as travel, medical expenses, weddings, or consumer purchases carry no income tax deduction under any section of the Income Tax Act. The interest you pay is not deductible from your taxable income, and there is no rebate or relief available for unsecured personal borrowings used for personal consumption.
There is one exception: if the personal loan proceeds are used exclusively for purchasing or constructing a residential property, the interest component may qualify for deduction under Section 24(b) of the Income Tax Act, subject to the applicable limit for self-occupied or let-out property. You will need to maintain documentary evidence showing that the funds were specifically directed toward the property purchase or construction. For first-time home buyers, additional interest relief may be available under Section 80EEA, covered in detail in the Section 80EEA guide on this site.
Self-employed professionals and business owners who take a personal loan for business purposes may deduct the interest as a business expense under income from business or profession. This benefit is not available to salaried employees whose loan is used for personal expenses.
Conclusion
Bandhan Bank personal loans offer a rate starting at 9.47% per annum for salaried borrowers choosing tenures above 3 years, with a maximum loan amount of Rs. 25 lakh and tenures up to 60 months. The rate-tenure structure is genuinely unusual and rewards careful tenure selection. As a general rule, your total monthly EMI burden across all loans should not exceed 40 to 45 percent of your net take-home salary. If the EMI at your preferred amount and tenure pushes you above that threshold, either reduce the loan amount or extend the tenure to lower the monthly outflow, and check whether the total interest difference makes that trade-off worthwhile. Use the calculator above to run both scenarios before submitting your application.
Frequently Asked Questions
What is the interest rate on Bandhan Bank personal loans?
Salaried borrowers are eligible for a rate starting at 9.47% per annum for tenures above 3 years, and 12.15% per annum for tenures of 3 years or less. Self-employed professionals are offered rates starting at 10.10% per annum (above 3 years) and 12.55% per annum (up to 3 years). The actual rate depends on your income, credit profile, and employer category.
What is the maximum personal loan amount from Bandhan Bank?
Bandhan Bank offers personal loans up to Rs. 25 lakh. The actual sanctioned amount depends on your net monthly income, existing loan obligations, CIBIL score, and employer profile.
What is the maximum tenure for a Bandhan Bank personal loan?
The maximum tenure is 60 months, or 5 years. The minimum tenure is 12 months. Bandhan Bank applies a lower interest rate for salaried borrowers who choose tenures above 3 years, which makes a 4 or 5-year tenure worth evaluating even if a shorter tenure feels more comfortable.
What are the foreclosure charges on a Bandhan Bank personal loan?
Foreclosure within the first 12 months attracts a charge of 4% of the outstanding principal. After 12 months of repayment, the charge reduces to 2.5% of the outstanding principal. For loans of Rs. 10 lakh and above, foreclosure is permitted without any charge after 12 EMIs have been paid, provided the borrower uses their own funds (not a balance transfer from another lender) to close the loan.
Can I make part payments on my Bandhan Bank personal loan?
Yes. Part payment is permitted once per year and twice during the entire loan tenure, up to a maximum of 25% of the outstanding principal balance per transaction. Part payment is only available after the first 12 EMIs have been paid. Charges for part payment are not specified in the standard fee schedule as a separate line item, but you should confirm with the branch before making a prepayment.
What is the processing fee for a Bandhan Bank personal loan?
Bandhan Bank charges a processing fee of up to 3% of the loan amount. The exact fee depends on the loan amount, your profile, and any promotional offers available at the time of application. The processing fee is typically deducted upfront from the disbursed loan amount.
Why does Bandhan Bank charge a lower rate for longer tenures?
Bandhan Bank's personal loan rate structure is unusual: salaried borrowers choosing tenures above 3 years are offered 9.47% p.a., while those choosing 3 years or less face 12.15% p.a. This tiered structure appears to reflect Bandhan Bank's product strategy of encouraging longer-tenure commitments from stable salaried borrowers. For the borrower, this means a 4 or 5-year loan can be cheaper both in monthly EMI and sometimes in total interest than a 3-year loan at the same bank, depending on the loan amount.
How quickly does Bandhan Bank disburse a personal loan?
Bandhan Bank typically disburses personal loans within 2 working days of application approval and document verification. Doorstep document collection is available in select locations, which speeds up the process for applicants who prefer not to visit a branch.
Does a Bandhan Bank personal loan offer any tax benefit?
No tax deduction is available for personal loans used for personal expenses, travel, or medical purposes. If the loan funds are used strictly for purchasing or constructing a residential property, the interest may qualify for deduction under Section 24(b) of the Income Tax Act. For business use, self-employed borrowers can claim the interest as a business expense.