|
0
|
10L
|
20L
|
30L
|
40L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
0
|
1
|
2
|
3
|
4
|
5

49,919

69,80,559

#### Total Payments

1,19,80,559

Break-up of Loan Amount
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## SBI Personal Loan EMI

The Personal Loans offered by SBI are convenient as well as affordable. The lowest rate of interest offered by SBI is 11.05%. The rate of interest on the Personal Loan differs based on the loan amount and the loan tenure. You will have to pay a higher equated monthly instalment (EMI) for the short duration loan such as those for two years whereas your EMI will be lower if you opt for longer loan tenure like five years.

The Personal Loan EMI is the monthly fixed amount that one needs to pay against the Personal Loan to the lender. Every month a fixed amount is paid to the bank until the loan is completely paid off.

The interest component and the principal repayment are the two major components included in every EMI. Even if the EMI is constant, the ratio and proportion of each component may vary. The proportion of principal repayment in EMI keeps increasing with every EMI payment whereas; the proportion of interest keeps reducing.

## How Does the SBI Personal Loan EMI Calculator Work?

SBI Personal Loan EMI calculator calculates EMI considering a combination of the loan amount, interest rate, and loan tenure.

The reducing balance basis is the method considered by SBI EMI Calculator and it is assumed that the payment will be made in arrears that means interest will be charged for the month preceding the EMI payment date and not in advance.

The three EMI governing factors - loan amount, loan tenure, and rate of interest are very important to calculate the EMI. The EMI will decrease with the increase in loan tenure and increase with the decrease in the loan tenure.

Following mathematical formula is applied to calculate the EMI.

EMI = P x r x (1 + r) n/ [(1 + r) n - 1]

Where,

P= Loan amount

r= interest rate

n=tenure in months

MyMoneyMantra offers a very simplified and easy Personal Loan EMI calculator to make this calculation simple and accurate. It is very beneficial to calculate the EMI before availing the SBI Personal Loan as it will help you to channelize your financial expenses and plan accordingly. It also helps you beforehand to know your limitations and requirements.

All you need to do is just enter your loan amount, loan tenure, and the estimated rate of interest. The EMI calculator will instantly display the EMI amount. You can also try various permutations and combinations to arrive at the best suitable loan option.

## Managing Your Personal Loan EMI

It is vital to remember that EMI changes in case of prepayment.

If you decide to prepay your Personal Loan with SBI, the outstanding balance on your Personal Loan will reduce. SBI has two options for you in such a case:

• Reduce the loan tenure and keep the EMI unchanged: In this option, you can close your loan before the loan tenure and this will allow you to save the interest associated with the balance tenure. This is apt for the borrowers who do not have many expenses and are in the position to reduce loan tenure.
• Reduce the EMI and keep the loan tenure same: Those who have higher monthly expenses can opt for this option wherein you can reduce the monthly instalment against your loan by increasing your monthly surplus and use the same for meeting other needs. This will help you to reduce your monthly EMI obligation.

## How to Decide the Perfect Amount of EMI?

• Decide how much you need to borrow: The perfect estimation of the loan amount that one needs to borrow from the bank is very important before applying for the loan. However, the Personal Loan being unsecured loan does not require any collateral but comes with a higher rate of interest. Therefore, it is always recommended to reduce the amount of the Personal Loan to the minimum. Based on your monthly calculation it is better to opt for a loan with short tenure as long tenure loan means greater interest outgo.
• Assess current obligations: The evaluation of the current monthly expenses such as any other EMI obligations on your current loan accounts will help you get a reality check and plan your finances accordingly. It will also be of great help in estimating the amount of EMI that you can serve comfortably with the obligations and current expenses. Based on this you can decide the right loan tenure and right loan amount.
• Calculate your eligibility for SBI Personal Loan: The functional assessment of your repayment capacity based on your monthly income and fixed obligations determine your Personal Loan eligibility.

## Methods to Assess Loan Eligibility

Multiplier based loan amount eligibility: A multiplier is applied to your net take home worth for arriving at the loan amount that SBI can lend to an individual. This is one of the simplest and easiest ways of calculating a loan amount.

The formula used in the loan amount eligibility calculation is Loan Eligibility = (Your Net Salary) x (multiplier of 9 to 18). The multiplier depends upon a number of factors such as the reputation and size of the company you are working with, job stability, the growth of the company in turnover, and so on.

FOIR based loan amount eligibility: To ascertain the maximum amount that you can pay as EMI SBI uses Fixed Income to Obligations Ratio (FOIR). This is calculated based on your current income and your monthly expenses. The bank will apply a certain ratio to the income in order to estimate the monthly expenses and then add the other EMIs to find out the fixed obligations. This proportion of your fixed income to obligations gives your FOIR.

SBI approves the maximum FOIR for 0.45 to sanction the loan. Based on the FOIR the bank will also assume the maximum EMI amount the borrower can afford to pay off the loan. This assessment of the bank may differ from your own assessment. The loan amount requirement can be adjusted based on this assessment.You can also think of paying off your some short-term loans in order to improve the loan eligibility.

SBI will calculate your loan amount eligibility based on the above two methods and will sanction you a loan amount arrived at, by the above two methods.

## A Quick Guide on SBI Personal Loan

Purpose of Loan: SBI Personal Loan can be applied for any kind of emergency, medical treatment, wedding, travel, paying additional debts or any other emergency finance requirements.

Key Features

• Loan amount of minimum 25,000 to 15 Lakhs.
• Loan Tenure is 1 to 5 years.
• Loan available for both salaried individuals and self-employed.
• Borrowers within the age group of 21 and 58 years.
• Interest rates in the range of 11.05% to 17.10%.

Processing Fees: The processing fee may go up to 1%. This fee has to be paid at the time of applying for the loan.

Special Schemes: SBI provides customised Personal Loan options and special schemes. It depends on the category of the borrowers which scheme shall apply to them. If you are a government employee or working with a large reputed company you may avail special loan offers. Few special loan offers from SBI are as follows:

• SBI Pension Loan
• State Bank Festival Loan
• SBI Xpress Credit Personal Loan
• SBI Saral Personal Loan
• Jai Jawan Pension Loan

## Benefits of Using MyMoneyMantra's Personal Loan EMI Calculator

It is very important and beneficial to use an EMI calculator before applying for the loan. This will help you get the exact idea and clarity concerning how much loan amount you can take and EMI amount you can comfortably pay. Some of the benefits of using an EMI calculator as mentioned below:

• Easy-to-use

The MyMoneyMantra EMI calculator is very easy to use and you need not to be a finance expert to use this EMI calculator. You can calculate your monthly EMI easily with this calculator.

• Faster Results

Get the faster result with the help of EMI Personal Loan calculator. Within a few seconds, you will get the exact EMI amount you need to pay. Thus, it helps in saving your time.

• An easy assessment of repayment capacity for better financial planning

Find out the desired EMI Value and assess your repayment capacity with ease with the help of MyMoneyMantra EMI Calculator. All you need to do is just try a various combination of your data or tweak them a little bit to arrive at the exact loan amount you can take along with the loan tenure. This will help you to stay grounded and plan all your finances accordingly so as to pay your EMI on time.

• Informs you about the best Personal Loan offers

Make the most informed decision with MyMoneyMantra EMI calculator. We give various Personal Loan options that you can consider. Just click on the 'Get Quotes' tab for best Personal Loan options.

• No extra charges

The EMI Calculator at MyMoneyMantra is available free of cost anybody can visit our website fill in the details and get the EMI amount. It can be used by anyone.

• No lengthy or difficult calculations involved

You can calculate the Personal Loan EMI with the help of an excel spreadsheet. However, sometimes it is very tedious and confusing to calculate the same and is a very lengthy process too. An EMI calculator helps you to calculate the EMI of your Personal Loan with ease and instantly. It takes away your stress of working with an accurate figure by simplifying the entire process.

## FAQs on SBI EMI Calculator

### Why should I calculate SBI Personal Loan EMI before taking a loan?

It is always recommended to calculate Personal Loan EMI before arriving at a Personal Loan. There are various benefits of calculating your SBI Personal Loan EMI. Some of them as discussed below:

The calculation of the EMI amount can help you determine if the EMI suits your monthly budget in case the EMI does not fit in your budget you can consider applying for a lower amount.

• If you already know the EMI you have to pay each month, then you can plan your finances and expenses accordingly.
• Knowing the EMI amount beforehand enables you to opt for making a prepayment of your Personal Loan in future in case you have a surplus amount.

### What are the SBI Personal Loan foreclosure charges?

SBI offers you an option of Personal Loan foreclosure at 3% of outstanding balance.

### What is the processing charge on the Personal Loan from SBI?

The processing fee for SBI Personal Loan is up to 1% of the loan amount and applicable taxes.

### Will SBI give me Personal Loan even with a bad credit score?

No, A good credit score is required to apply for the loan with the SBI. A credit score of 700 and above is considered as good for approving a loan. The banks avoid giving the loan to individuals having a low credit score.

### How can I make an SBI Personal Loan repayment?

The repayment of a Personal Loan can be done in the form of an EMI (Equated Monthly Instalment) through the customer's bank account. The customer is required to present a few postdated cheques and sign an ECS mandate in favor of the bank at the time of loan disbursal.

### Can I apply for an SBI Personal Loan with a co-applicant?

Yes, you can have a co-applicant to take a Personal Loan from SBI this will increase your Personal Loan eligibility as the income of the co-applicant is also taken into account while considering your loan application.