What is the first thing that comes to you mind when you hear the term SBI Personal Loan? Is it the tenure, loan amount or fee/charges? Well, whatever your thoughts, but the interest rate is surely one such factor that grabs the attention of those who knows its importance. Yes, because knowing SBI personal loan interest rates is surely one of the most important things as it can be a game changer for you. What happened, looking so confused by reading the above line? Well, let’s clear all your doubts on interest rates as how they play a pivotal role in your loan journey.
If we talk about State Bank of India, currently the bank is offering you the personal loan at an interest rate ranging between 12.45%-14.95% per annum. So, if you want to avail a loan from the lender, you can get the same on an interest rate mentioned above.
When it comes to a personal loan offered by SBI, you can get the loan for a maximum tenure of 5 years. (60 months) Now, how this interest rate will create a difference in your loan journey is the big question here? Well, actually the lower interest rate is, the better it is for you in the long run as the amount of your EMIs will also be lower in that case.
However, if things are not under your control and a lender is offering you the loan at a high rate, the reverse will happen and you will end up paying the higher EMI till your loan gets repaid.
It would not be wrong to say that personal loan interest rate could be a deciding factor while availing a loan as every borrower wants lower interest rate to reap the maximum benefits in the long run. This is the reason that the moment you think of buying a loan, knowing the interest rate should be your first priority. Let’s understand this concept with the help of an example below.
Suppose, Ravi Sharma wants to avail a personal loan of Rs.5 Lakh. He chooses SBI for the same, and the bank is also more than happy to avail him a loan at an interest rate of say 12.60% p.a. for 5 years. So, what is the amount that he needs to pay each month to repay the loan? Well, the help of an EMI Calculator it comes out to be Rs.11,274.
Now, let’s take a look at another scenario, where the same guy has availed a loan for the same amount, for the same tenure, but with a lower rate of interest i.e. 11.49% p.a. So, what’s gonna be more interesting here is to know how much amount of EMIs he will pay in this case. Is it going to be lower or higher than the previous scenario? Well, let’s see further…
In the second scenario, his EMIs will come out to be Rs.10,994, which is obviously lower than the previous scenario. So, who is the hero here that played a pivotal role in the overall outgo? Well, it’s none other than the interest rate. Hence, now you know what SBI personal Loan interest rates can do,thus how much important it is to know about the same.