When it comes to accessing the best of banking services, State Bank of India (SBI) is where most have their eyes on as the country’s largest public lender serves customers through its 25,000 odd branches. Be it the deposits or the advances, SBI remains on the lip of most.
Talking about the advances, the most popular one is a personal loan that’s easily accessible without having to submit a collateral for the same. What makes one apply for SBI Personal Loan is due to the attractive interest rates on offer. But what counts most for the borrowers is the sum payable on the loan they apply for, plus whether or not they are eligible for a debt.
So, you must switch on SBI Personal Loan Calculator to get a complete overview of your loan eligibility and future repayment. Let’s dedicate this article completely to the calculator.
Types of SBI Personal Loan Calculator
There are several calculators that you must use with respect to your SBI Personal Loan. These include –
- Eligibility Calculator
- EMI Calculator
- Amortization Calculator
SBI Personal Loan Eligibility Calculator
Before applying for a loan, one must know whether they deserve the credit coming their way. As far as SBI’s personal loan eligibility is concerned, you must be a permanent employee of any public and private sector entities. Even pensioners drawing a pension from SBI bank accounts can apply for a personal loan. The key also lies in knowing whether you deserve the amount of credit you want to apply for. This is where the calculator comes handy. It takes into account your income, expenses, savings and other parameters to calculate the loan for you. Firstly, the calculator computes the per lakh EMI based on the existing interest rates and the tenure for which you want to apply for. It then keeps your savings in the loop and computes the loan amount based on the following formula.
Loan Eligibility = 1,00,000 x savings/per lakh EMI
Also, the calculator sees whether the proposed EMI accounts for more than 50% of the net monthly income (NMI). If that is the case, the loan amount can reduce.
On a general note, SBI offers a maximum loan at 24 times of NMI, subject to a limit of ₹15 lakhs.
SBI Xpress Credit Personal Loan EMI Calculator
SBI brands its personal loans under Xpress Credit, available for as much as 5 years at an interest rate of 11.35%-15.10% per annum. To know the Equated Monthly Installment (EMI) payable on your loan, you must use the EMI calculator which uses loan amount, interest rate and tenure to calculate the installments. All you need to do is to go online and fill the space against these three to compute the EMI, which consists of both principal and interest repayments. The calculator would also show the total amount of interest likely on a loan.
You can play smart by choosing a relatively shorter tenure rather than following the conventional wisdom of going for a longer tenure. Yes, a longer tenure can lead to a lower EMI compared to a shorter one. But you would commit a sin of massive interest repayment as is the case with a longer tenure. On the other hand, a shorter tenure does yield a greater EMI but reduces the interest repayment considerably for a borrower. So, the focus should be to choose a tenure that can yield an EMI you would be comfortable paying every month while also keeping the interest outgo in check.
SBI Personal Loan Amortization Calculator
Just adjacent to the results of EMI calculator online, you can see an amortization schedule of loan repayment. You can see how interest and principal repayment is likely to pan out year-on-year. At the same time, you can glance at the outstanding loan balance at the end of every year. This can possibly be a tool to plan a perfect prepayment to cut down the interest liability. If you receive a bulk at any point in time during your repayment, you can use it to prepay the loan. However, don’t exercise prepayment option if you are a few months away from completing the repayment. Ideally, the savings should be used to prepay if the repayment period is around 2 years or so from getting completed. Prepayment does come with charges at 3% of the outstanding balance.
For example, a personal loan worth ₹5 lakhs at 12% for 5 years will keep outstanding loan balance to ₹2,36,273 at the end of 3 years. The interest liability for the remaining 2 years is likely to be ₹30,659 if one does not go for prepayment. Applying 3% prepayment charges, the cost comes out as ₹7,088.19. Even with the charges, you can save around ₹23,570.81 (30,659-7,088.19).