The following tips would help you to decide on the right SBI personal loan EMI amount for yourself-
- Evaluate your present financial obligations: Before availing an SBI personal loan, it is imperative for you to evaluate your present expenses every month, including EMI obligations, if any. It will help you decide on the EMI amount that you can pay to the bank comfortably on any given month.
- Decide the amount to borrow: You need to estimate the SBI personal loan amount you require well in advance. Being mostly an unsecured loan, an SBI personal loan often comes at high-interest rates and therefore, you would do well to limit the loan amount to a bare minimum.
- Calculate your State Bank of India personal loan eligibility: The SBI personal loan eligibility is an assessment of your repayment capacity, which is again derived from your monthly salary/income and other fixed obligations. The State Bank of India calculates your personal loan eligibility by employing either of the 2 methods mentioned below-
This is the simplest method to calculate personal loan eligibility. In this method, the SBI applies a multiplier to your net take home salary. This multiplier is a function of your company profile (stability, reputation, annual turnover and size) and the take-home salary. If you earn a hefty salary and work in a company with a good reputation, the multiplier will be high enough, and it will positively impact his personal loan eligibility. It will also mean that the borrower will be able to get the best personal loan rates too.
- FOIR or Fixed Obligation to Income Ratio method
In this method, The SBI considers the ratio of your fixed income to obligations. It ascertains the maximum EMI you can spend, about your net income and expenses (such as existing EMIs and rents) on a given month. Usually, the State Bank of India accepts about 50% of your monthly income to be consumed by EMIs, credit card outstanding, or other fixed obligations. If such obligations exceed further, the bank may either reduce the loan amount or may increase the loan tenure. You may also pay back some of the existing short-term loans so that the FOIR is improved. SBI is expected to be a bit more lenient in case of high income borrowers.
Apply for an SBI personal loan through Afinoz.com, the favorite online market place for loan seekers in India, from the absolute comfort of your home. Also, the efficient tool named the Afinoz Personal loan EMI calculator will inform you about the exact amount of your SBI personal loan EMI in a minute! Thus, you can ‘crunch the numbers’ and can save yourself from any impending financial distress later on. This personal loan EMI calculator is highly accurate and you can get quick results at your own convenience, without any errors. Also, you can have your own permutations and combinations regarding the SBI personal loan tenure, interest rates and loan amount. Thus, you will be at liberty to make your own informed decisions as per your unique need and affordability.