Home Loan Calculator for

SBI

SBI Home Loan EMI Calculator

India’s largest lender, State Bank of India, is one of the biggest players in the home loan market. The public lender provides a range of credit facilities and financing options, including home loans.

When you take a home loan from SBI, you have to pay it off using equated monthly instalments or EMIs. The SBI Home Loan EMI Calculator plays a crucial role in this. The SBI Home Loan EMI Calculator helps you get an idea about the amount of money you need to pay each month for the SBI home loan.

What is an SBI Home Loan EMI Calculator?

The SBI Home Loan EMI Calculator is an online tool that helps you calculate the monthly instalments you have to pay for availing a home loan.

The SBI Home Loan EMI Calculator is designed specifically to calculate the EMIs based on interest rate, loan amount and tenure.

How to Use the SBI Home Loan EMI Calculator?

• Go to the SBI Home Loan Calculator page on the official website of the State Bank of India.
• Choose the loan amount.
• Select the interest rate.
• Select the tenure.

You can adjust the slider for different loan amounts, interest rates and tenure. The online EMI calculator for home loan will show the EMI along with the interest portion and total repayment amount.

Factors Affecting SBI Home Loan EMI

• Loan Amount: Higher loan amounts lead to a higher amount of EMI and vice versa.
• Interest Rate: Rate of interest is another significant factor. Higher rate of interest leads to a higher EMI amount.
• Loan Tenure: Shorter tenures usually mean higher EMI amounts, while longer tenures keep your EMI amount down. However, you may end up paying a higher interest component if you choose a longer tenure.
• Type of Interest: SBI home loan EMI can be impacted depending on whether you choose fixed or floating interest rates. A fixed interest rate means that it will remain the same throughout the loan tenure. Floating interest rates may change as the bank updates its policies.

Benefits of Using SBI Home Loan EMI Calculator

• The SBI EMI Home Loan Calculator can tell you the exact EMI you need to pay before applying for a loan.
• It helps you make wise decisions about the loan amount, tenure and interest rates.
• The EMI Calculator also helps you to avoid financial hassle in future with the information about exact EMI you have to pay after availing the loan.
• You can make better financial plans using the SBI Home Loan EMI Calculator for monthly instalments over different tenures and interest rates for the amount you want to borrow.

SBI Home Loan Interest Rates and Tenure

The EMI amount is directly linked to the interest rate and the loan tenure. SBI home loan interest rates start at 8.5% and can go up to 9.65%, based on your CIBIL score. All SBI home loans are linked to external benchmark rates (EBLR). The maximum tenure is 30 years. A shorter tenure leads to higher EMI but lower interest component, and vice versa.

Understanding EMI and Its Components

The EMI is computed taking into account three major components – principal, interest rate and the tenure. Principal is the total amount of money you borrow, while interest is the extra charge you pay to the bank for disbursing the loan to you.

The home loan EMI calculator uses a simple formula to compute the EMI amount:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

• P is the principal loan amount
• R is the monthly interest rate
• N is the loan tenure in months

Common Mistakes to Avoid While Using SBI Home Loan EMI Calculator

• Avoid entering wrong loan amount, interest rates and tenure into the SBI Home Loan EMI Calculator to get the right results.
• Don’t jump into the first loan offer. Instead, compare and contrast different tenures, interest rates and principal.
• Avoid making hasty decisions and analyse the EMI amount on various loan offers.
• Do not ignore any hidden or additional charges while using the SBI Home Loan EMI Calculator.

Conclusion

The SBI Home Loan EMI Calculator is a useful tool that tells you the exact monthly instalment you have to pay for a housing loan. Knowing the EMI amount before availing a loan also prevents the borrower from making conscious financial decisions to ease burdens.