Sometimes such a situation arises in life when money is suddenly needed. At this time, the easiest option is a personal loan, because it does not require any guarantee. Bank of Baroda (BOB) is a leading bank in the country, which provides personal loans to its customers at attractive interest rates. The special thing is that if your salary account is in BOB, then you can also get a pre-approved loan, which can be availed through a mobile app in just one click. Let us know how much salary is required to take a personal loan of Rs 10 lakh and what the EMI will be.
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Interest rate on Bank of Baroda personal loan
Bank of Baroda is currently offering floating interest rates on personal loans ranging from 10.90 percent to 18.25 percent. At the same time, the fixed interest rate ranges from 11.25 percent to 18.30 percent. The interest rate depends on the category and profile of the applicant. The bank gives interest rates ranging from 11.25 to 16.25 percent to government employees. While for private sector employees and the business category, this rate ranges from 13.05 percent to 15.30 percent.
EMI calculation on a loan of Rs 10 lakh
If you take a personal loan of Rs 10 lakh from BOB for 5 years at an interest rate of 10.90%, then your monthly EMI will be around Rs 21,693. During this period, the total interest amount will be around Rs 3,01,555. If the interest rate is 12%, then the EMI will increase to Rs 22,244, and the interest will reach Rs 3,34,667. At the same time, at the rate of 14%, the EMI will be Rs 23,268, and the total interest will be Rs 3,96,095.
How much should your salary be
For loan approval, Bank of Baroda ensures that your total EMI does not exceed 50% of your monthly income. That is, if your EMI is Rs 21,693, then the minimum salary should be Rs 43,386. For a loan of Rs 10 lakh at a 12% interest rate, the monthly income should be at least Rs 44,488, and at a 14% interest rate, it is Rs 46,536.
When not to take a personal loan
Personal loans should always be taken wisely, as their interest rates are relatively high. It should be taken only in urgent situations like a medical emergency or a major financial crisis. If you are thinking of taking a loan only for lifestyle expenses like gadgets, holidays, or shopping, then it can prove to be a wrong financial move. Apart from this, if your credit score is weak, the bank will give you a loan at a high interest rate, which can further worsen your financial condition.