The Online SBI Personal Loan Calculator is helpful when applying for a personal loan. One of the most important factors for personal loan approval is applying for the correct loan amount and tenure. Therefore, it is crucial to plan your loan repayment tenure. The SBI Personal Loan Calculator can help you to calculate the exact monthly EMI and total interest amount.
What is Necessary for an SBI Personal Loan?
The most important thing when applying for a Personal Loan is going through the SBI Personal loan document list available on the SBI website. The SBI Personal loan document list includes:
- Identity proof (Aadhar, Voter ID, passport, etc.)
- Address proof (Aadhar, Voter ID, passport, etc.)
- Income proof (Salary proof)
- Income Tax documents
How Does the SBI Personal Loan Calculator Help in Personal Loan Planning?
Planning your personal loan is essential to ensure timely repayment and lessen the financial burden. Moreover, defaulting on loan repayment reflects poorly on your credit score. Therefore, the lender may not consider you a reliable borrower, imposing a higher interest rate on future loans. Using an SBI Personal Loan Calculator can help you in the following ways:
- Gives An Accurate Estimate
The SBI Personal Loan Calculator is a highly accurate tool that can estimate how much EMI and interest you will repay for a particular loan. For most personal loans, the interest rate remains fixed. Therefore, the amount estimated by the calculator remains applicable throughout the loan tenure. However, if you have opted for a floating interest rate, you may need to redo the calculation every time the interest rate changes.
- Comparing Different Personal Loan Plans
You can compare different personal loan plans on a Personal Loan Calculator. Then, based on the estimates given by the calculator, you can choose which personal loan plan is the best for you.
- Helps In Budget Planning
One of the most common mistakes made by borrowers is overestimating their repayment capability. Opting for a short loan repayment plan directly affects your monthly budget plan, giving you very little berth for emergency expenses. Therefore, an SBI Personal Loan Calculator estimates how much you will have to pay every month, allowing you to plan your monthly budget better.
- Helps to Improve or Maintain Credit Score
Picking a comfortable loan repayment plan can help improve your credit score. On the other hand, missing a repayment results in a considerable drop in the credit score. Therefore, if you have estimated a viable loan repayment plan through the Personal Loan Calculator, the chances of missing loan repayment and having a bad credit score are minimised.
- Easy to Access
The SBI Personal Loan Calculator is available online and works quickly. Moreover, the Personal Loan Calculator is free of charge, making it a very handy tool.
How Does a Personal Loan Calculator Work?
Personal Loan Calculators work on the formula of:
EMI = [Principal Amount x Bank Interest Rate x (1+ Bank Interest Rate)^Loan Tenure]/[(1+ Bank Interest Rate)^ Loan Tenure -1]
To use a Personal Loan Calculator, the user must enter the details of the principal amount, bank interest rate and loan tenure. Then, the calculator automatically applies the formula to give you the estimate instantly.
How to Get Your Personal Loan Approved Quickly?
Three critical aspects that affect your loan approval are your credit score, requested loan amount and SBI Personal loan document submission process. In addition, your credit score affects the interest rate the lender may offer. However, choosing the correct loan amount and tenure is the most important aspect. Choosing the wrong loan amount or term increases the risk of Personal Loan application rejection. Therefore, opt to plan amount and tenure with a Personal Loan Calculator to get your application approved quickly without any hassle.
Read Also: SBI Home Loan
