Everybody wants to opt for a lower interest rate so that they don’t have to worry about their finances while repaying. Now, you must be thinking about what is the role of interest rates in the repayment of your personal loan? Well, personal loan interest rates directly affect your repayment amount i.e. EMI amount. That’s why a number of people like to choose SBI Personal Loan Interest Rates so that they can pay the monthly installments without any worry. As you all know, State Bank of India (SBI) offers a wide range of banking services to the customers, and personal loan is one of the most popular ones.
So, in this article, we will be telling you with an example of how much money you can save by choosing the SBI Personal Loan Interest Rates as compared to interest rates of some other bank. Here, we will be taking the Axis Bank, which is one of the popular private banks. This will help you understand the savings you can make with the help of SBI Personal Loan EMI Calculator. So, if you are someone who is going to opt for a personal loan, keep reading to know more!
Impact of SBI Personal Loan Interest Rate on your EMI amount and Interest Outgo
As we said before, the interest Rates on your personal loan directly affect your EMI amount. So, the higher will be the interest rates, the higher will be the EMI amount and vice versa. So, without wasting any time, let’s get to the example.
Let’s say an individual wants to opt for a 5-year personal loan of INR 3 lakh. He has two options in his mind that are SBI Personal Loan and Axis Personal Loan with interest rates of 12.50% per annum and 17.99% per annum respectively for both loan types.
To do a comparison, we would be needing the EMI amount and interest outgo for both these rates so that you can make better decisions.
On taking the SBI Personal Loan Interest Rates of 12.50% per annum, the EMI amount would be INR 6,749 and interest outgo will be INR 1,04,963.
On the other hand, when he will choose Axis Bank Personal Loan Interest Rate of 17.99% per annum, the monthly installment would be INR 7,616, while the interest amount will be INR 1,56,984.
So, from the above example, you can see that when you are choosing a lower SBI Personal Loan Interest Rates, the EMI amount is lower (around 800 per month) as compared to Axis Bank Rates. Similarly, the interest outgo is also lower. So, you can easily decide which interest rate will be better for you.
If you are thinking about how we perform all of these Calculations, then you must know that you can use the SBI Personal Loan EMI Calculator to do the same. With this an amazing tool, you just need to put a few basic details into it. These details are Required Loan amount, Rate of Interest, and Tenure (up to 60 months).
With the SBI Personal Loan facility, the maximum loan amount that you can get is INR 15 lakh or 24 times of the Net Monthly Income, while the interest rate ranges from 10.35% to 14.75% per annum. Also, remember that SBI Personal Loan Interest Rates depend on a few important factors such as your employment type, history, monthly income, Location, and Credit score. So, the final rate may change according to these factors