Bank of Baroda Personal Loan EMI Calculator

Established in 1908, the Bank of Baroda has grown from a humble beginning into the fourth-largest public sector bank in India. With a customer-centric attitude and great vision, the bank has emerged with the finest financial solutions and caters to the industrial, commercial and retail sectors.

Keeping the customers’ convenience in mind, the Bank of Baroda introduced personal loans that are easy to avail without any cumbersome paperwork or collateral security. Personal loans can be a solution to any financial requirement. You now need not curb your dreams of an international holiday, destination wedding, studies abroad for want of funds as the personal loan can take care of it all. If all the eligibility criteria are met with you can get the funds in the shortest period. It is essential to know the loan amount you are eligible for in proportion to the disposable income available. Bank of Baroda provides calculators for every loan type. It has the Bank of Baroda Personal EMI Calculator for calculating the EMI for the proposed loan to assess your affordability before filling up the application for the loan.

Suppose you have to manage all the mandatory expenses like rent, utility bills, groceries, existing EMIs and credit card dues while making the regular payment for the proposed loan. In that case, you will have to plan your budget prudently. A personal loan EMI calculator will help you manage the proposed liability within your affordable limit by calculating the EMI that does not pinch your pocket. To use the Bank of Baroda EMI Calculator for Personal Loan, you must do the following.

• Visit the official website of the bank.
• Choose a personal loan under the loan option.
• On the personal loan page, you will find the Calculator option.
• Click on the option, and the calculator page will open.
• You now provide the required data, i.e., the loan amount, interest and tenure and the EMI will be calculated within a minute.
• Even the interest payable for the tenure chosen will also be shown to determine the loan cost.
• You can use the calculator several times till the EMI that does not go overboard is arrived at.

The mathematical formula for the calculation of interest on loans depends on the method of interest calculation. If the flat rate interest is applied, the interest will be calculated on the original amount irrespective of the repayments. But most of the banks, including the Bank of Baroda, calculate the interest on the reducing balance method where the interest is applied on the outstanding balance. The formula for calculation of interest on reducing balance method is EMI=P*r* (1+r)^n/([(1+r)^n]-1)   
EMI is the equated monthly instalment  
P is the principal  
N is the tenure  
R is the rate of interest.

The total interest payable for the tenure chosen will be given, which determines the cost of the loan. You can reduce the cost of the loan by seeking the best rate. This will happen only when your credit score is really good. Banks offer concessional interest rates for low-risk borrowers, i.e., borrowers with a good credit profile. On the other hand, you can choose a shorter tenure with a higher EMI if you can afford to reduce the loan cost.

Before applying for a personal loan, you should be aware that the repayment of the personal loan in EMI is a commitment for the tenure chosen. The tenure could be 12 months to 60 months. During this tenure, some additional expenses may crop up, which have to be provided for along with the additional burden you are about to take up. So you should be drawing a budget plan that includes the existing obligations and liabilities, the expenses you foresee in the next 12 months to 60 months and arrive at the disposable income. The EMI should be within this disposable income. The Bank of Baroda Personal Loan EMI Calculator will help you do the calculation. Besides this, there are various other benefits in using the Bank of Baroda EMI Calculator for Personal Loan.

• It is a technical tool that is user-friendly and can be used by anyone. You do not need any special skills to use the calculator.
• The calculation is fast and accurate to 100%. There is absolutely no scope for errors.
• It will give you the break-up of the principal and the interest that will be adjusted towards the loan out of the EMI.
• This schedule will help you plan your prepayments for a stage that will be of the highest benefit in reducing the interest cost.
• You can use the calculator multiple times, and the cost involved is zero.

Use the Bank of Baroda Personal Loan Calculator before availing of the personal loan for a safe personal loan journey.

Why do you avail of a personal loan? Because it is the easiest solution for a financial issue. But what if this solution becomes a headache in the future. There will be EMI missouts that lead you to severe repercussions. To avoid a situation like this, you should use the Bank of Baroda Personal Loan Calculator and choose the EMI that suits your affordability.

The debt to income ratio is one factor that determines your eligibility. This is the ratio of the existing liabilities, including the proposed EMI and other obligations to your income. After deducting all the liabilities and obligations, including the proposed EMI, the net take-home salary should be at least 40 to 50% of your gross income. The percentage stipulation differs from lender to lender buy the general stipulation is 40 to 50%. If the EMI arrived at using the Bank of Baroda calculator for Personal Loan does not meet the criteria, you can improve your eligibility by declaring additional income, clearing some of the liabilities like credit card dues, etc., or reducing the loan amount sought. This will enable you to ensure that your loan application is not rejected. The outcome of such rejection is a dip in your credit score that you would want to avoid.

Using the EMI calculator and arriving at the EMI beforehand will enable you to plan for future expenses and investments so that you will not be in for surprises during the personal loan repayment tenure, which could be between 12 months to 60 months.

Knowing the additional burden to your income beforehand will help you to manage the finances better in order to maintain financial discipline.

The EMI of the personal loan being within the budget is very crucial if you have to maintain financial discipline throughout the loan tenure. Paying the EMI on time has various advantages, including scaling up your credit score. A good credit score is a key to an economic loan as it will give you the advantage of negotiating the interest rates with the lender.

For the EMI to be within your budget, you will have to use the Bank of Baroda Personal Loan EMI calculator and arrive at the EMI that is within the disposable income available. 

The loan amount, rate of interest and tenure are the three main variants that greatly impact the EMI of the Bank of Baroda Personal Loan.

Loan amount: The amount of personal loan sanctioned is the loan amount. If the amount is higher, the EMI will also be higher. If you want to bring down the EMI, you will have to increase the tenure. In case the EMI arrived is for the maximum loan tenure, then you can eventually reduce the EMI by making periodical prepayments and opting for rescheduling of the EMI.

Interest: This is the most critical factor as it determines the cost of the loan. The higher the rate of interest, the higher will be the EMI and the cost of the loan. If you maintain a good credit score with financial discipline, lenders will give you the benefit of a concessional interest rate as they prefer to lend to a low-risk borrower to ensure prompt recovery of the loan.

Tenure: A longer tenure will yield a lower EMI, but the loan will prove expensive as the overall interest for the tenure will be higher compared to a loan of lower tenure. It will be prudent to choose a higher tenure to fit the EMI to your budget and then lower the tenure by making periodical prepayments whenever possible.

A Personal Loan EMI Calculator will give you the exact idea of the total interest cost but will not be able to tell you about all the other charges that will add to the cost of the loan, i.e., processing charges, prepayment charges, preclosure charges, delay penalties, EMI dishonour charges etc.

Banks charge a processing charge at the time of accepting the application to the extent of 0.50% to 2% of the loan amount. Most banks allow prepayments without any charges if the loan is availed at a floating rate of interest by individuals. Otherwise, the prepayment charges will be 2% to 4% of the prepaid amount. The same is with the preclosure charges, but the chargers will be on the outstanding loan balance at the time of prepayment or preclosure.

You will have to get the information of these charges from the bank branch or by calling the customer care helpline of the bank.