Personal Loan EMI Formula:
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The Personal Loan EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes each month to repay a loan over its term. The formula accounts for the principal amount, interest rate, and loan duration.
The calculator uses the EMI formula:
Where:
Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan (principal + interest) over the specified term.
Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before committing to a loan.
Tips: Enter the loan amount in INR, annual interest rate (current SBI personal loan rate), and loan term in years. All values must be positive numbers.
Q1: What is the current SBI personal loan interest rate?
A: As of 2023, SBI personal loan interest rates typically range from 10.50% to 16.00% per annum, depending on customer profile and loan amount.
Q2: What is the maximum loan amount available?
A: SBI offers personal loans up to ₹20 lakhs, depending on income and repayment capacity.
Q3: What is the maximum repayment period?
A: SBI personal loans typically have a maximum tenure of 5 years (60 months).
Q4: Are there any prepayment charges?
A: SBI usually doesn't charge for prepayment of personal loans after 12 EMIs have been paid.
Q5: What factors affect EMI amount?
A: EMI depends on three factors: loan amount, interest rate, and loan tenure. Higher loan amounts or rates increase EMI, while longer tenures reduce EMI.