An unsecured loan is very popular in the market, a large number of people borrow personal loans for their short-term financial needs. And while browsing for personal loan options, one simple and convenient tool that can help is the SBI personal loan EMI calculator. When you are indecisive about whether to apply for a loan or not, input the loan details in the SBI bank personal loan EMI calculator to find out the possible EMI amount.
How to use the SBI personal loan EMI calculator?
An EMI calculator is the most easy-to-use tool, and it generates the possible EMI amount based on your inputs. When using the SBI online personal loan EMI calculator, you need to enter just three values:
- Loan amount
- Interest rate
- Tenure
And you'll get instant results.
Formula for SBI Personal Loan EMI calculator
The below formula is used to calculate your EMI amount. Take a look:
EMI= [PXRX(1+R)^N]/[(1+R)^N-1]
where:
- EMI = Equated Monthly Instalment
- P = Principal loan amount
- R = Monthly interest rate (Annual rate divided by 12)
- N = Loan tenure in months
Here is an illustration of how the EMI calculator works:
Suppose you want to borrow ₹10 Lakh and the interest rate you are getting this loan at is 8%. To find out what could be your EMI payment during the five-year tenure, use the SBI personal loan calculator, you will have the following outcome, as per the EMI calculation:
- Loan EMI: ₹20,276
- Total Interest Payable: ₹2,16,584
- Total Payment(Principal + Interest): ₹12,16,584
Yearly Amortisation Table
| Year | Opening Balance (₹) | EMI (₹) | Interest (₹) | Principal (₹) | Closing Balance (₹) |
| 1 | 10,00,000 | 20,276 | 38,627 | 83,031 | 9,16,969 |
| 2 | 9,16,969 | 20,276 | 66,985 | 1,76,332 | 7,40,637 |
| 3 | 7,40,637 | 20,276 | 52,350 | 1,90,967 | 5,49,670 |
| 4 | 5,49,670 | 20,276 | 36,499 | 2,06,817 | 3,42,852 |
| 5 | 3,42,852 | 20,276 | 19,334 | 2,23,983 | 1,18,869 |
| 6 | 1,18,869 | 20,276 | 2,789 | 1,18,869 | 0 |
Factors Affecting SBI Personal Loan EMI
Several factors can influence the EMI of a personal loan. Understanding these factors can help you make informed decisions and manage your loan repayments more effectively.
1. Loan Amount
Higher loan amounts result in higher EMIs, as the base amount on which interest is calculated is larger. Conversely, a lower principal amount results in a lower EMI.
2. Loan Tenure
A longer tenure reduces the EMI, as the repayment amount is spread over more months. However, this also means paying more interest over the life of the loan. A shorter tenure increases the EMI but reduces the total interest paid.
3. Type of Interest Rate
There are two types of interest rate, see which one is applicable to your loan:
- Fixed Interest Rate: The interest rate remains constant throughout the loan tenure. This results in a fixed EMI.
- Floating Interest Rate: The interest rate fluctuates based on market conditions or a reference rate. This can cause the EMI to vary over time.
4. Prepayment and Part-Payment Options
Paying off the loan before the end of the tenure can reduce the total interest paid. Making additional payments towards the principal can also reduce the principal amount, thereby reducing future EMIs and the total interest paid.
5. Debt-to-Income Ratio
The ratio of your total monthly debt payments to your gross monthly income impacts your EMIs. A high debt-to-income ratio may limit the amount that can be borrowed, affecting the principal amount and thus the EMI.
Frequently Asked Questions
What factors affect my SBI personal loan EMI?
Several factors influence your SBI personal loan EMI, with the main three being: loan amount, interest rate and loan tenure.
How can I estimate my SBI personal loan EMI before applying?
SBI offers a personal loan EMI calculator on their website. This tool allows you to input different loan amounts, interest rates, and tenures to see how they affect your EMI. You can find the calculator on the SBI personal banking section or by searching online.
Is a shorter loan tenure always better?
A shorter tenure results in a higher EMI but with less total interest paid. Conversely, a longer tenure offers a lower EMI but with more total interest. Consider your budget and financial goals to choose a tenure that balances affordability with minimising interest costs.