1. What is SBI Personal Loan Interest?

SBI (State Bank of India) offers personal loans with interest rates starting at 10.49% per annum. The interest is calculated using simple interest formula for the loan tenure.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Annual interest rate (in decimal)
• \( t \) — Time period in years

Explanation: The formula calculates the total interest payable over the loan tenure based on the principal amount and annual interest rate.

3. Importance of Interest Calculation

Details: Calculating interest helps borrowers understand the total cost of the loan, compare different loan offers, and plan their finances accordingly.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (minimum 10.49%), and loan tenure in years (can be fractions like 1.5 for 18 months). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for SBI personal loans?
A: The current minimum interest rate is 10.49% per annum for eligible customers.

Q2: Is this calculator accurate for all SBI personal loans?
A: This provides an estimate using simple interest. Actual loans may use reducing balance method and have processing fees.

Q3: What is the maximum tenure for SBI personal loans?
A: SBI typically offers personal loans with tenure up to 5 years (60 months).

Q4: Are there prepayment charges?
A: SBI usually doesn't charge prepayment penalties for personal loans after 12 EMIs have been paid.

Q5: What factors affect the interest rate?
A: Your credit score, income, employment type, and relationship with SBI can influence the final interest rate.