SBI Loan Payment Formula:
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The SBI loan payment formula calculates the fixed monthly payment (EMI) required to repay a loan over a specified term. It accounts for the principal amount, annual interest rate converted to monthly rate, and the loan duration in months.
The calculator uses the standard loan payment formula:
Where:
Explanation: The formula calculates the fixed payment needed to fully amortize the loan over its term, with interest compounded monthly.
Details: Accurate loan payment calculation helps borrowers understand their repayment obligations, compare loan offers, and plan their finances accordingly.
Tips: Enter principal amount in INR, annual interest rate (current SBI personal loan rates start at 10.49% p.a.), and loan term in months. 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 start at 10.49% p.a. for eligible customers, but may vary based on credit profile.
Q2: How does loan term affect monthly payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total interest.
Q3: Are there any processing fees for SBI loans?
A: Yes, SBI typically charges a processing fee up to 1.5% of the loan amount plus GST.
Q4: What is the maximum loan amount from SBI?
A: SBI offers personal loans up to ₹20 lakhs depending on income and repayment capacity.
Q5: Can I prepay my SBI loan?
A: Yes, SBI allows prepayment after 12 EMIs with a prepayment charge (usually 2-3% of principal outstanding).