Are you planning to take up an SBI personal loan to meet an urgent financial need? If yes, you need to make sure of your EMI pay-outs ahead of time and make a logical decision about the amount of loan and tenure. In the following sections we will discuss key features of an SBI personal loan EMI including its calculation method, EMI options of payments, factors affecting the EMI amount, late payment charges and more. 

Personal Loan EMI is a constant amount that you pay monthly to the State Bank of India towards repayment of loan taken. The EMI is paid every month on a fixed day of every month till your Personal Loan is fully paid off.

SBI Personal Loan EMI consists of a principal payment and part of interest payment. In the initial years, the principal part on loan is lesser than the principal part. The EMI remains fixed during the entire repayment period. However, the interest component on loan in every EMI keeps decreasing while principal component undergoes the vice versa of it i.e., it keeps increasing.

As mentioned, the EMI on a personal loan remains constant throughout the repayment period. But in the rare case that it does, the reasons for it are only 2, they are: 

  • When the rate of interest alters on a floating rate personal loan. 
  • When you come to a decision to prepay a part of the loan availed. 

In case of change in SBI floating interest rates or in case of loan prepayment, you have two options: 

  • Keep EMI constant and change the tenure of the loan. 
  • Keep the tenure of the loan constant and reduce the EMI. 

What is an EMI? 

The term EMI is short for Equated Monthly Instalment. An equated monthly instalment (EMI) is defined as the quantity that a loan receiver pays monthly to a lender so as to repay the money borrowed. There’s a specific date every month by which the EMI ought to be paid by the receiver.  

The loan quantity and the accumulated interest is split equally over an amount and you’ll be able to simply calculate this final quantity with an EMI Calculator. The amount of equated monthly instalments is equal to the number of months within the loan reimbursement tenure.

The State Bank of India Personal Loan EMI Calculator helps you approximate the EMI amount that you will be mandated to pay off every month, on taking a personal loan from State Bank of India. 

The calculator will thus display the monthly EMI amount that you will be required to pay. You also will be able to see the detailed break-down of the total payable amount.  

Working of An EMI Calculator and The Factors That Affect Your EMI 

An EMI calculator uses 3 key factors to calculate your EMI instantaneously and automatically: 

  • Loan Amount: This refers to the borrowed amount of money. Normally, a higher loan amount means a higher EMI if the interest rate and tenure are kept constant.
  • Loan Tenure: This refers to the repayment period of the loan amount. The loan tenure for a personal loan at STATE BANK OF INDIA Bank ranges from 12 months to 60 months, which enables you can choose the tenure as per your capabilities. Please also note that usually, a longer tenure means lower EMIs.
  • Interest Rate: This refers to the rate at which interest is levied on the personal loan. The interest rate for STATE BANK OF INDIA Bank personal loan is dependent on the bank’s 1-year MCLR, the Marginal Cost based lending rate, and varies between 9.68% – 15.65%. Loan EMI usually increases with an increase in the interest rate. Moreover, the EMI amount depends on the method by which interest is calculated, which is discussed in the subsequent section. 

EMI Calculation Formula for Personal Loans: 

There are 2 ways in which Personal Loan Interest Rates are calculated – Flat Rate and Reducing Balance Interest Rate

Diminishing charge per unit or reducing charge per unit is applicable to the outstanding loan balance once payment of every EMI is done. 

A. Flat Rate Method:  According to this methodology, an individual is charged a rate of interest on the entire loan quantity when initially borrowed. As a result, the EMI quantity remains constant throughout the loan tenure. The formula that supports this method of EMI calculation is as given below: 

EMI Calculation by Flat Rate Method = (Principal + Interest) / Loan Duration in Months 

Example: Mr. Y availed a loan of Rs. 10 lakhs at a flat rate of interest of 12% for a period of 36 months. 

i.e., Interest for 1-year is 12% of Principal i.e., 12% of Rs.10 lakhs which is Rs.1,20,000 

Thus, interest for 3 years equals to 3 * Rs.1,20,000 = Rs.3,60,000 

EMI = (Rs.10 lakhs + Rs.3,60,000) / 36 = Rs.30,778 

B. Reducing Balance Method:  

In this technique, interest is charged solely on the outstanding loan principal and not the full quantity at first borrowed. Hence, this technique permits you to save a lot on the interest part of the loan. The formula that supports this method of EMI calculation is as given below: 

P multiplied by R multiplied by (1+R) ^ n divided by [(1+R) ^ n-1] 

P = Principal figure of the loan 

R = Interest Rate 

N = Number of instalments per month. 

The above-mentioned terms, along with some additional fees, in this case, the processing fee are needed to determine your EMI. 

For example, suppose you have opted for a personal loan of Rs. 20 lakhs for 2 years at an interest of 20 % p.a. 

Initially, we need to convert the interest rate per annum into a monthly rate and the tenure into months. 

To be able to calculate the rate of interest per month, we have to divide the annual interest rate by the number of months in a year, so monthly 20/12 = 1.66% per month 

The loan tenure of 2 years must also be converted into months before taking it into consideration into the formula i.e., 24 months 

 Now we have the three different terms with us which we can integrate into the formula as follows: 

EMI = [20,00,000 x 1.66 / 100 x (1 + 1.66 / 100) ^ 24 / [(1 + 1.66 / 100) ^ 24 – 1) 

EMI = Rs.1,00,179 

Schedule of Amortization 

The amortisation schedule is a table which is inclusive of essential specifics pertinent to loan repayment.  

Amortization Table 

The following table demonstrates the amortisation schedule based on the example illustrated above. 

Months (in Numbers) Interest (in Rs.)Principal (in Rs.)EMI (Principal + Interest)Balance (Rs.)
17,500 17,402 34,902 14,82,598 
17,297 17,605 34,902 14,64,992 
17,092 17,811 34,902 14,47,181 
16,884 18,019 34,902 14,29,163 
16,674 18,229 34,902 14,10,934 
16,461 18,441 34,902 13,92,493 
16,246 18,657 34,902 13,73,836 
16,028 18,874 34,902 13,54,962 
15,808 19,094 34,902 13,35,867 
10 15,585 19,317 34,902 13,16,550 
11 15,360 19,543 34,902 12,97,007 
12 15,132 19,771 34,902 12,77,237 
13 14,901 20,001 34,902 12,57,235 
14 14,668 20,235 34,902 12,37,001 
15 14,432 20,471 34,902 12,16,530 

During the months initially, the principal amount is lower than the interest factor. As the period lengthens, the principal amount of the EMI with respect to the loan exceeds the interest portion. 

State Bank of India Personal Loan EMI Calculator Benefits 

The idea of how much the borrower needs to pay towards their loan is, by far, the most important feature benefit of an EMI calculator.  This helps them to avoid paying above their capacity in the long run that they do not end up straining themselves in financial distress. This Loan EMI calculator helps the borrower decide on an EMI amount which can be repaid without much trouble over the tenure of the loan. 

There are a multitude of other advantages of EMI calculators, they are: 

  • Anytime Access 

The calculator can be accessed anytime and anywhere. You can use the calculator multiple times, for 0 charge, and any number of times whenever you please. You do not have to go to the bank branch or lose yourself with the dilemma of figuring out complex and substantial mathematical calculations; instead, all you have to do is just access the internet and use the EMI calculator. 

  • Accurate Results 

Doing calculations manually comes with the potential risk of making mistakes. Further, more mistakes can be made by repeatedly doing the same calculations and this leads to further erroneous results. Also, when you calculate EMIs personally on loans offered by different banks, the chances of errors increase further. Thus, the online EMI calculator aids you in making error-free calculations at the click of a button! 

  • Saves you the time on complex calculations 

The process of comparing the loans offered by different providers can often become very boring and time-consuming as you are using the same formula over and over again. By hand, you will be forced to spend long hours to calculate loans and thier respective EMIs. However, with this online tool, you have the advantage of saving your important time and complete all the lengthy and boring calculations in seconds! That being said, you can try out as many combinations for amount, tenure and rates of interest which you want to from the convenience of your home. 

  • Aids the Financial Planning Process 

While calculating the EMI for a loan, you should know the amount which you will have to pay when you take up a loan of the said amount, the tenure and also the interest rate. This will aid you in planning your finances prior to taking the loan so that your monthly budget does not take bear the burden! Another thing you can do is vary the parameters of the loan so as to reach the most suitable EMI as per your requirements. 

  • An EMI calculator can be used for every loan 

Calculating loan EMIs never was this simple! You can deploy various calculators for different types of loans, be it one for home, vehicle or education. Even though the criterion for every loan is vastly similar, there can be situations where you will feel the need to use loan specific EMI calculators. To be on the safer side of calculations, use a specific calculator for specific loan types. 

  • Bonus Advantage  

You can also negotiate a bit on the rate with the loan provider. It just might work. 

Non-Payment of EMI Charges – Charges of Cheque Bounce and Penal Interest Charges 

Below is a list of charges that apply to your STATE BANK OF INDIA Bank personal loan in addition to interest charges: 

Charges for Repayment Instruction Rs. 500/- per occurrence of cheque/SI/ECS dishonour + GST 
Charges of Penal Interest   24% per annum, i.e., 2% per annum on the overdue EMI 
Swap Charges (Cheque/Instrument) Rs. 500/- per occurrence + GST 
Duplicate Amortization Schedule Issuance Charges Rs. 25/- per occurrence per set + GST 
Re-issuance of photocopy of Loan Agreement/Documents Rs. 250/- per occurrence per set + GST 
Duplicate Statement Issuance Charges Rs. 250/- per occurrence per set + GST 
Duplicate NOC Rs. 500/- per occurrence per set + GST 
Stamp Duty Charges As per Stamp Act 

How to Pay an Overdue EMI Online? The Steps: 

If you defaulted on an EMI payment due of your personal loan by STATE BANK OF INDIA Bank, then follow the below steps to pay the overdue EMI online: 

Step 1: Visit the portal of STATE BANK OF INDIA overdue EMI payment. 

Step 2: Provide the various details of your STATE BANK OF INDIA Bank loan account. 

Step 3: Enter the details of validation to make the payment. 

Step 4: Receive a confirmation for the payment of your STATE BANK OF INDIA overdue EMI amount online and take a note the transaction reference number 

Visit to know more about STATE BANK OF INDIA Bank Personal Loan and apply for one with a Fast approval process too! 


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