SBI Personal loans are available for 1-6 years with attractive EMI repayment options. However, If you miss your SBI personal loan EMI due to any reason, there will be consequences. What will be the after-effects of missed EMIs? The impact will be a penalty, a fall in the credit score, etc. A bad score could lead to a rejection of any other loan or credit card you may apply for later. So, if you have an SBI personal loan, take the below-mentioned precautions to avoid late EMI payment.
Tips to Manage SBI Personal Loan
Managing SBI Personal Loan repayment like a pro can go a long way in boosting your future credit approvals. So, you should focus on managing the repayment too as you do while taking a loan. Below are some measures you can take to ensure so.
How Much is the Total Payable on SBI Personal Loan Interest Rate?
SBI Personal Loan interest rate ranges from 10.60% to 12.60% per annum. And at the time of getting the loan, you should try to negotiate to reduce the rate of interest. You can do the same by putting the facts like good income, credit score, etc. And when the bank is convinced of you, it’ll be easier for you to repay the loan. Why? Because a low-interest rate means less burden on your pocket. A high-interest rate can lead to huge EMIs that can affect your budget.
So, if you don’t want that, check out the total payable on SBI personal loan interest rate using the online calculator. And once you do that, manage your repayments accordingly. The result of the calculator may slightly differ from the actual. So, be prepared for that as well.
Use the SBI Online Tools to Figure Out the Best Repayment Estimate
There are several online tools available by which you can find out the amount you can borrow and how much you’ll be paying for the same. SBI personal loan eligibility calculator is a tool that shows how much you can borrow based on your current income and obligations. And the SBI personal loan EMI calculator generates the approximate EMI that you’ll be paying to the bank. When you use the tool, it will be easier for you to understand the loan structure.
Let’s take an example and see how the calculator works –
Ramesh is a salaried employee for at least three years, he has been looking to borrow money for his home renovation. He thus decided to apply for an SBI personal loan. At first, he was worried about the interest rate and other charges. But after he saw the affordable rates starting from 10.60% per annum, he went ahead with the deal. But before that, he used the SBI personal loan calculator to see his EMI estimates. After mentioning the below details –
- Loan amount – INR 5 Lakh
- Interest rate – 11.25% per annum
- Loan tenure – 3 years
The calculator shows the EMI of INR 16,369. After checking the same, he went ahead with the SBI personal loan for home renovation.
Plan Your Prepayment
With prepayment, you can pay a lump sum amount to the bank, so the outstanding amount reduces. And for that, SBI charges up to a 3% prepayment fee plus taxes. This will be three percent of your balance loan amount. So, if your loan balance is INR 8 Lakh, the prepayment fee will be INR 2,400 plus taxes. You can even take the help of the SBI Personal Loan EMI calculator to see when will be a good time to do the prepayment.
Opt for an Automatic Payment Method
With the standing instruction service, your EMI amount will be reduced from your linked account each month. So you won’t have to worry about the due date anymore. Just maintain balance in your account.