SBI Personal Loan EMI Calculator is such an online tool that helps you know the repayment. Using this, you can find your EMI amount in advance. And do you know the advantages of this? You can make a smart decision about the repayment tenure. SBI Personal Loan comes with a tenure option of up to 72 months. So, there is a lengthy repayment period available to you. And as you know the longer the tenure, the lower is the EMI payment. Let’s read this article and learn how SBI Personal Loan EMI Calculator helps you.
List of SBI Personal Loan EMI Calculator Benefits
When you use the SBI Personal Loan EMI Calculator, the following list of advantages can be availed
Yes, you can get a lower EMI amount for your SBI Personal Loan using the EMI Calculator. To get this benefit, insert your loan details inside the calculator. Now, the EMI will be displayed. See whether you can manage to pay that off each month without affecting your budget. Keep the existing obligation in mind while deciding the tenure. Because your day-to-day expenses shouldn’t get affected by the SBI Personal Loan EMI.
An ideal tenure is the one that helps you get easy EMI payments. So, alter the loan details until you get the desired EMI amount and the loan that meets your financial needs.
If you’re worried about the interest payout, use the SBI Personal Loan EMI Calculator and see when it will be low. The interest of an SBI Personal Loan can make your repayment bearable or unbearable. Because when the interest is high, it will be difficult to manage everyday expenses and the repayment seems lengthy. Whereas, a low interest helps pay off the loan without any hassle.
Planning for Repayment
Many plan their repayment the moment they apply for the loan. Well, this is a smart decision and SBI Personal Loan EMI Calculator is the right tool that will help you in this. When you insert the loan details inside this tool, you get the idea of the future repayment. And accordingly, you can make your investments to pay off the loan earlier than scheduled.
If you close your loan early, you can save quite a bit on interest payments. What do you have to do in this? For SBI Personal Loan Prepayment, you need to pay a lump sum principal balance. Using the EMI calculator you can find out the loan balance for each year and see which will be more compatible for you as per your savings and investments. For this, SBI charges a fee of 3%. And this charge won’t apply if you close the loan account from the proceeds of a new loan.
How does the SBI Personal Loan EMI Calculator Work?
SBI Personal Loan EMI Calculator work in the formula of –
EMI = P × r × (1 + r)n/((1 + r)n – 1)
In this P symbolizes the principal amount that you borrow from SBI, r is the rate of interest and n is the tenure.
Let’s check out the below example and know how you’ll get the desired result –
Neha is applying for SBI Personal Loan. But before going any further with her application, she uses the EMI calculator. Her loan amount is INR 6 Lakh and the interest rate is 10.25% per annum. For the longest tenure of 72 months, her EMI is 11,191. But the total interest is approximately INR 2 Lakh which is not quite high.
As Neha can afford more EMI she changes the tenure and enters a 4-year repayment period. Now, her EMI is 15,290 and her total interest is INR 1.3 Lakh.
So, you get to know the utility of the SBI Personal Loan EMI Calculator. Implement the same as and when required in real time.