State Bank of Hyderabad (SBH) is currently one of the subsidiary banks of State Bank of India (SBI). It was originally set up as Hyderabad State Bank in 1941. It acquired other banks such as Hyderabad Mercantile Bank Ltd. and became a subsidiary of SBI in 1959. The bank has more than 1,800 branches currently, and it will soon be merged into the parent bank as part of the government’s banking consolidation process.
SBH offers a series of retail loan products, including personal loans. Personal loans are unsecured loans that are a convenient means of meeting unexpected expenses such as a personal emergency or debt consolidation, or to meet a high expense for which you do not have the means at the moment, such as a wedding or a foreign trip.
An EMI Calculator works on the following formula:
E = P x r x (1+r)^n/((1+r)^n-1)
Here, E – Equated Monthly Instalment (EMI)
P – Loan amount
r – Interest rate (monthly)
n – Loan duration (in months)
BankBazaar’s EMI Calculator also takes into account processing fees and pre-payment schedules to give you a more transparent result.
The repayment of a personal loan, like any other loan from a bank, is made on a monthly basis through an Equated Monthly Instalment (EMI) schedule. An EMI is a fixed amount you would be paying to the bank every month based on the principal amount borrowed, the interest rate applicable on the amount and the tenure of the loan. It is important to determine whether you will be able to afford the repayment pattern of the loan before you borrow the money. Your financing needs may be high but would you be able to repay the amount once the loan is taken? The best way to answer this is to find out how much your EMI is going to be, approximately, before you take the loan. Thankfully, this process is very easy because of the EMI Calculator.
An EMI Calculator is a tool that tells you the EMI you would have to pay every month to the bank. One of the most comprehensive EMI Calculators available online is the one hosted by BankBazaar. The tool gives you a clear break-up of the total amount payable, the interest you’ll be paying to the bank throughout the loan tenure, and also takes into account processing fees and pre-payments you plan to make.
Personal loans from SBH are available for around 15.5% interest and for a tenure of up to 3 years. The processing fee charged is 1% of the total loan amount.
To use the BankBazaar EMI Calculator, follow 7 Easy steps given below:
Let us look at an example. You are taking a personal loan of Rs.3 lakh for a period of 3 years, at an interest rate of 15.5% and processing fee of 1%. You decide to make pre-payments of Rs.50,000 every year starting from 12 months. Once you input all this data on to BankBazaar EMI Calculator, you will get the following results:
EMI – Rs.10,473
Total interest payable – Rs.58,862
Processing fee – Rs.3,000
Total amount payable to the bank – Rs.3,61,862
Pre-payment analysis: You save Rs.21,173 and tenure is reduced by 11 months.
Any other EMI Calculator will only be able to tell you the EMI, total interest payable and total amount payable, without considering the pre-payments or processing fee.
The key reasons you would want to use an EMI Calculator are as given below:
Not necessarily. Though an EMI Calculator is accurate to the values input by you, the bank may have additional charges that are not factored in by the Calculator. So this might lead to slight variations on the EMI and total payable amount.
No. The BankBazaar EMI Calculator is a comprehensive one-stop tool that can be used to calculating EMIs of any loans.
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