Sbi Personal Loan Prepayment Calculator

Amortization Formula with Prepayments:

\[ Interest_k = Balance_{k-1} \times r \] \[ Principal_k = PMT + extra - Interest_k \] \[ Balance_k = Balance_{k-1} - Principal_k \]

Loan Amount (INR):

₹

Annual Interest Rate:

Loan Term:

years

Extra Monthly Payment (INR):

₹

Total Interest Payable:

Total Payment Period:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is SBI Personal Loan Prepayment?

The SBI Personal Loan Prepayment Calculator helps you understand how making extra payments towards your SBI personal loan can reduce your interest burden and loan tenure. Prepayment refers to paying more than your EMI amount to reduce the principal faster.

2. How Does the Calculator Work?

The calculator uses the amortization formulas:

\[ Interest_k = Balance_{k-1} \times r \] \[ Principal_k = PMT + extra - Interest_k \] \[ Balance_k = Balance_{k-1} - Principal_k \]

Where:

\( Interest_k \) — Interest portion of k-th payment (INR)
\( Principal_k \) — Principal portion of k-th payment (INR)
\( Balance_k \) — Remaining balance after k-th payment (INR)
\( r \) — Monthly interest rate (decimal)
\( PMT \) — Regular monthly payment (INR)
\( extra \) — Additional prepayment amount (INR)

Explanation: The calculator shows how each extra payment reduces your principal faster, thereby reducing total interest paid and potentially shortening your loan term.

3. Benefits of Prepayment

Details: Making prepayments on your SBI personal loan can save you significant interest costs and help you become debt-free faster. Even small regular extra payments can make a big difference over the loan term.

4. Using the Calculator

Tips: Enter your loan amount, interest rate, loan term, and any additional monthly payment you plan to make. The calculator will show your amortization schedule and total interest savings.

5. Frequently Asked Questions (FAQ)

Q1: Does SBI charge prepayment penalties on personal loans?
A: SBI typically doesn't charge prepayment penalties for personal loans, but check your loan agreement for specific terms.

Q2: How much can I save with prepayments?
A: Savings depend on your loan amount, interest rate, and prepayment amount. Even ₹500-1000 extra per month can save thousands in interest.

Q3: Should I reduce EMI or tenure when prepaying?
A: Reducing tenure (keeping EMI same) saves more interest than reducing EMI amount (keeping tenure same).

Q4: When is the best time to make prepayments?
A: Earlier prepayments save more interest as more of your initial payments go toward interest rather than principal.

Q5: Are there tax benefits on prepayments?
A: No, personal loan prepayments don't offer tax benefits unlike home loans under Section 80C.