1. What is the Personal Loan EMI Calculation?

The Personal Loan EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a loan based on the principal amount, interest rate, and loan term. This calculator uses SBI's current personal loan rates for estimation.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly payment (EMI)
• \( PV \) — Loan amount (principal)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed payment needed each month to pay off the loan with interest over the specified term.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, ensuring the loan payments fit within your monthly budget and comparing different loan offers.

4. Using the Calculator

Tips: Enter loan amount in INR, SBI's current interest rate (default is 9.60% p.a.), and loan term in years. The calculator will show your monthly EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is SBI's current personal loan interest rate?
A: As of 2023, SBI personal loan rates start from 9.60% p.a. for salaried individuals, but may vary based on credit profile.

Q2: How does loan term affect EMI?
A: Longer terms reduce EMI but increase total interest paid. Shorter terms mean higher EMI but lower total interest.

Q3: What factors affect personal loan eligibility?
A: Income, credit score, employment type, existing debts, and relationship with the bank affect loan approval and rates.

Q4: Are there prepayment charges?
A: SBI typically charges 0-3% for prepayment, depending on loan type and tenure remaining.

Q5: What is the maximum loan amount?
A: SBI offers personal loans up to ₹20 lakh for salaried individuals, subject to eligibility.