You get a personal loan from SBI to meet your financial needs. But can you pay it back comfortably? That’s a question you should ask yourself while deciding on a personal loan. Because the non-payment of SBI personal loan can lead to a penalty, low credit score and legal obligations. Read this article carefully and know whether you should apply for an SBI personal loan.
Things to Check Before Proceeding with the SBI Personal Loan Application
Interest Rate Charged by SBI
SBI personal loan interest rate starts from 9.60% per annum, probably the lowest in the market. But you still have to pay attention to the rate of interest you will get. In case the bank levies higher interest rates for you, it can become difficult for you to repay the money. For a low rate of interest, you need to give surety to SBI that there won’t be any trouble during the repayment period. So, how will you make SBI confident of that? That’s where a high income and a good credit score of more than 750 help you. A High income gives you more space for repayment, while a 750+ credit score is a reflection of how responsible the borrower you are.
Use the SBI online calculator to see how much you’re capable of borrowing. And don’t borrow money more than your requirement. Because if you do so, it’ll only make your EMIs expensive. How does the tool work? Your loan eligibility will depend on your income, obligations and savings.
SBI offers you a repayment tenure of six to seventy-two months. You can opt for a shorter tenure if the loan amount isn’t that high and can repay the loan without having to make any adjustments to your routine. Whereas, you need to choose a longer tenure when the loan amount is high. This way, you can repay the SBI personal loan without any problem.
SBI personal loan comes with an age bar too. You can get money from the bank if you are at least 21 years old. Whereas, the maximum age permitted for SBI Personal Loan is 58 years. Because individuals aged 18 years have just entered adulthood and won’t be able to get a fixed job and ensure spotless repayment. Whereas people aged more than 58 years are at the brink of retirement and may not make EMI payments on time.
What is the SBI Personal Loan Penalty Charge & How it Would Impact Repayment?
SBI charges a 2% penalty on late payment. So, if your EMI is INR 5,000, INR 100 will be charged over it. The best way to avoid late payment is to choose a standing instruction service for EMI payment. In this, your EMI will be automatically debited from your linked account when the due date arrives. You just need to make sure there is enough balance in your account to repay the EMI.
Role of the SBI Personal Loan EMI Calculator
Using the SBI personal loan EMI calculator, you can know the approximate EMI amount. The tools work on the below formula to generate your EMI –
EMI = P × r × (1 + r)n/((1 + r)n – 1)
Here, P is the amount you borrow from the bank, r is the applicable rate of interest and n is the repayment tenure.
Let’s see the below example to know how SBI personal loan EMI calculator usage helps you get an affordable loan.
Neesha is looking for a loan, so she can plan her next vacation without compromising on savings. SBI allows her to borrow a maximum personal loan of INR 12 Lakh at an interest of 10.35% per annum. Now, all she needs to do is decide on a tenure. Well, if she uses the EMI calculator, she can plan a repayment tenure for herself.
On using the EMI calculator, Neesha enters the following information –
- Loan amount – INR 7 Lakh
- Interest rate – 10.35% per annum
- Tenure – 48 months
So, her EMI will be INR 17,872.