At times, we may come across situations like a medical emergency where it is critical to have funds, but we do not have enough at that moment. In such situations, SBI comes to your rescue with its portfolio of personal loans. The personal loan EMI calculator immediately gives us the EMI that we would need to pay for the required loan.
It is often that we let personal desires take a back seat in our lives, simply because there are more pressing issues that need our attention. Most of the times, it is because we do not have extra funds to splurge on these desires. The desires could be anything such as a vacation, renovating the home or buying a gadget that is beyond our financial reach. In such situations also, SBI can be of help. You can use the personal loans for these purposes as well.
Types of Loans
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SBI offers two different types of personal loans – secured and unsecured. While the secured loan requires some asset document to be submitted as a security, the unsecured one can be processed with minimal documentation.
What Are the Different Types of Personal Loans from SBI?
There are four categories of loans in SBI. These are different in terms of their functions as well as the target segments.
Credit – Available at a rate in the range of 11.45% – 15.35% per annum, this loan fulfils the immediate need for money, which should be paid back within 5 years. This loan is processed at 1% of the loan amount.
Elite – You can get a loan in this category if you have a salary account in SBI bank. The range of interest rate is 10.95% – 12.70% per annum. The maximum tenure is 5 years and the processing fee is fixed at 1%.
Bandhan – This loan is unsecured and is applicable for those who do not have a salary account with SBI. The range of interest rate is 12.85% – 15.20% per annum. The maximum tenure is 5 years. This has a minimum salary requirement of INR 50,000 for a loan amount starting at 25,000 to a maximum of 15 lakh.
Pension – This plan has zero processing fees and is available for retired people only. The interest rate starts at 11.9% per annum and the repayment tenure is 5 years.
Eligibility for Personal Loan
SBI is well known for its services and the trust of their customers who approach the bank for loans of all kinds. Before you apply for the loan, you will have to verify your eligibility. It is very easy to do. Access the SBI personal loan eligibility calculator, fill in the required details and check your eligibility. The factors affecting the approval of a personal loan include your current financial standing or your credit score, your current income as well as any payments already being made for clearing a previous loan.
At an overall level, the applicant should be in the age group of 21-58 years (if salaried) and 21-65 years (if self-employed). The minimum salary requirement if INR 5000 per month and the self-employed should have a minimum income of INR 7000 per month. Work experience of minimum two years is required for all.
What Is the EMI for a Personal Loan?
The EMI of a personal loan is the amount that you have to pay every month to clear your loan. It will depend on the value of the loan, the interest charged and the tenure of the loan. By using these three variables in the SBI bank personal loan EMI calculator, you can instantly know the EMI that you would need to shell out every month. If you feel that the EMI is on the higher side, you can rework the loan amount and the tenure till you come up with an EMI that is acceptable to you. This is how the SBI online loan calculator works.
The EMI that you pay to the bank to repay the SBI Bank Personal Loan includes your principal loan amount as well as a part of the interest that you need to pay. Since both these components together make the EMI, the share of the principal increases with each installment, while that of the interest starts reducing. You can see the exact breakup in the amortization table generated by the EMI calculator.
Additional Read: Features & benefits of SBI personal loan emi calculator
What Are the Factors That Affect the EMI of a Personal Loan?
The EMI is affected by the three variables of the loan system. As the loan amount becomes bigger, the EMI also increases. If the rate of interest increases, then also the EMI will increase. But, with the increasing tenure, the value of the EMI becomes lesser. But you have to be careful here. For a longer tenure, the EMI may be smaller, but you would pay a lot more as interest – sometimes, much more than the amount that you had borrowed.
What Are the Benefits of Using the Calculator?
The SBI Personal Loan EMI Calculator is easy to use and is available free of cost. You can get quick and accurate results instantly when you enter the variable values of the loan amount, the interest rate and the tenure. You can also get the detailed breakup of the EMI in terms of the principal amount and the interest charged. But, the best benefit you get is when you wish to prepay the loan as you can recalculate the EMI. You can also choose to rework the tenure of the loan.