Factors Affecting SBFC Personal Loan Interest Rates That You Know

SBFC is one of the leading financial institutions that has emerged as one of the most popular Non-Banking Financial Companies (NBFCs) over the past few years. The reasons are many: Affordable interest rates, lenient eligibility criteria, the higher loan amount that a customer can get. But the most important popular reason is its SBFC Personal Loan Interest Rates. Due to the affordable rates, customers can easily enjoy the affordable repayment amount. But there is one thing you need to remember that SBFC Personal loan interest rates tend to vary from one individual to another based on a few factors.   

Well, you must be thinking about what are the factors that affect the personal loan interest rate? Well, there are a few factors that determine the interest rates for a personal loan. We are showing some of them below. 

  • The first and foremost one is the age of the applicant. SBFC always checks the age before sanctioning the personal loan. The chances of getting lower interest rates are quite high for a young individual than a person who is close to his or her retirement age.
  • The second one is the most important factor which is the Monthly Income that defines your repayment capacity. Lenders can trust those individuals more who have a higher income as they can pay a higher EMI amount. Individuals with low income and fewer obligations can get lower SBFC personal loan interest rates. 
  • Your employment type also defines your interest rates for the SBFC personal loan. Salaried employees can get lower interest rates as compared to self-employed individuals. Reason: salaried employees usually get their income on a fixed date while self-employed individuals can face ups and downs in their businesses. 
  • The last factor that affects the interest rates for the SBFC personal loan is the Credit Score of an individual. Credit score defines the creditworthiness of an individual. A higher credit score (700 or above) can get you lower interest rates and vice versa. 

Effect of SBFC Personal Loan Interest Rates on Repayment Amount

As we said, personal loan interest rates directly affect your repayment amount. The higher the interest rates, the higher will be the EMI amount and vice versa. But to understand it better, we are giving you an example with which you can see the impact of SBFC personal loan interest rates on the EMI amount. 

Let’s say, an individual has opted for a 5-year personal loan of INR 6 lakh. To see the impact, we are taking two different interest rates of 10.99% and 13.99% per annum.

On taking the first interest rate of 10.99% per annum, the EMI amount would be INR 13,042  and the interest outgo will be INR 1,82,548.

Similarly, when we consider the interest rate of 13.99% per annum, the EMI amount would be INR 13,958 and the interest outgo will be INR 2,37,470. 

So, you can see the difference of around INR 900 in the repayment amount when we are choosing a higher interest rate. Also, the interest outgo is quite higher as compared to lower SBFC personal loan interest rates. That’s why it is always advised to opt for lower personal loan interest rates so that you can easily repay the EMI on time.

All of these calculations can be done by the SBFC personal loan EMI Calculator. To use this tool, you just need a few basic details such as Required Loan Amount (INR 6 lakh), Rate of Interest (13.99% per annum), and Tenure (5 years or 60 months). As soon as you feed these details into the calculator, you will get the results instantly. 

The best thing about the SBFC personal loan EMI Calculator is its accuracy and speed with which it provides results. Apart from getting the EMI amount, a customer can also see the interest outgo and the total amount payable over tenure.