Personal loans are among the most common choices of finance for individuals in need of quick money without pledging any collateral. The Bank of Baroda is one of the leading public sector banks in India, offering attractive personal loan schemes at very competitive interest rates with flexible repayment options. Often one wonders: how much EMI do I pay if I take a ₹5 lakh personal loan for 5 years? Let us understand the full details.
Loan Amount and Tenure
If you are willing to take a personal loan of ₹5 lakh from Bank of Baroda with a 5-year (60 months) repayment period, then the repayment will depend on the rate of interest that is offered. The bank in general, offers interest rates between 10% and 15% per annum, as per your credit rating, income, and eligibility.
A Sample EMI Calculation
Let’s suppose the loan approval has been done at 11% p.a. interest rate. Then the EMI calculation for ₹5,00,000 for 60 months comes to approximately Rs. 10,870 per month.
- At 10% interest rate: EMI is around ₹10,624 per month.
- At 12% interest rate: EMI is around ₹11,122 per month.
- At 15% interest rate: EMI is around ₹11,895 per month.
This means that the offered rate may vary at the time of the loan sanction, further impacting your EMI.
Eligibility for Bank of Baroda Personal Loan
Anyone willing to apply for a personal loan should be working for an organization, self-employed, or engaged in running a business with consistent income means. A good credit score above 700 is preferable to qualify for a low interest rate.
Features of the Loan in Brief
The Bank of Baroda personal loans provided by the Bank have flexible repayment tenures, ranging from a minimum of 12 months to a maximum of 60 months. The bank does not ask for collateral or security for this loan, so you can access funds for whatever purpose you need-medical treatment, weddings, education, travel, or debt consolidation.
Benefits for the Borrower
Primarily, with the very least paperwork, one can instantly get funds. In the EMI structure, repayment occurs easily and predictably, whereby prepayment or foreclosure can be done if any borrower gets surplus money to save interest.
Conclusion
If you take out a personal loan of ₹5 lakh for a period of 5 years from Bank of Baroda, your monthly EMI will lie between ₹10,600 and ₹11,900, depending upon the rate of interest. With cheap installment, no security required, and quick disbursal, Bank of Baroda personal loan emerges as a sound choice in case of any sudden need for money.