Many times in life, we suddenly need money, and in such a situation, a personal loan seems to be an easy option. Big banks like Bank of Baroda (BoB) easily offer personal loans to government and private employees. If you have a salary account, you can also get a pre-approved loan, which is often at a low interest rate and comes to your account with a single click. In this article, we will tell you what your salary should be and how much EMI you will have to pay every month if you take a personal loan of ₹ 10 lakh from Bank of Baroda.
Bank of Baroda Interest Rates
Bank of Baroda offers different interest rates on personal loans for different categories of people. Floating interest rates range from 10.90% to 18.25%, while fixed interest rates range from 11.25% to 18.30%.
For Government employees:- 11.25% to 16.25%.
For Private employees and traders:- 13.05% to 15.30% (floating rate 12.65% to 16.25%).
EMI on ₹10 lakh personal loan
If you take a personal loan of ₹10 lakh for 5 years, then your EMI will be something like this:
At a 10.90% rate:- Your monthly EMI will be ₹21,693, and in 5 years you will pay a total interest of ₹3,01,555.
At a 12% rate:- Your monthly EMI will be ₹22,244, and the total interest will be ₹3,34,667.
At 14%:- Your monthly EMI will be ₹23,268, and the total interest will be ₹3,96,095.
What should be your salary to get a loan of ₹10 lakh
Banks usually do not allow the total EMI of all your loans to exceed 50% of your salary. According to this, your minimum salary should be something like this:
At 10.90%:- Your minimum salary should be ₹43,386.
At 12%:- Your minimum salary should be ₹44,488.
At 14%:- Your minimum salary should be ₹46,536.
When should you not take a personal loan
Taking a personal loan can sometimes prove to be a bad financial decision, as the interest rates are often very high. Avoid taking loans for going on holidays, online shopping, or wedding expenses. These expenses can put a burden on your financial situation. If you are getting a loan at a very high interest rate, stay away from it. The total cost of the loan increases a lot due to processing fees and other charges. If your credit score is not good, then banks can give you a loan at an even higher interest rate. In such a situation, it is wise to avoid taking a loan.