SBI Home Loan can be availed of to purchase or construct a property by all businessmen, self-employed, and salaried applicants. Special rates of interest are offered to the women applicants. With the help of the SBI Home Loan EMI Calculator, an applicant can calculate the Equated Monthly Installments i.e. EMI. It helps in getting an idea about the repayment options, the interest amount, and the EMI amounts.
What is a Home Loan EMI Calculator?
Once a home loan is availed, the repayment is to be done in monthly installments which are known as Equated Monthly Installments (EMI). As taking a home loan is a long-term commitment it is always advisable to have a better understanding of the repayment scheme. An EMI component includes both the principal loan amount and the interest component, hence the Home Loan EMI Calculator eases such calculations online.
To use the SBI Home Loan EMI Calculator online, first, analyze the amount of loan to be raised along with the approximate EMI amount that can be paid off from the monthly income.
SBI home loan EMI calculator works on the below-mentioned formula
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ (N-1)].
- P is the principal or the loan amount.
- R is the rate of interest calculated per month.
- N is the loan tenure in months.
For example, a home loan of INR 60 Lakh at a 9% (0.75% per month) rate of interest with a tenure of 20 years (240 months) is availed by the customer.
Then, EMI would be = [60,00,000 x 0.75% x (1+0.75%) ^ 240] / [(1+0.75%)^ (240-1)].
i.e. EMI = INR 53,984.
Benefits of the SBI Home Loan EMI Calculator
Below mentioned are the benefits of the SBI Home Loan EMI Calculator:
- It enables to calculate the correct amount so as to make EMIs more affordable.
- It helps in determining the correct loan tenure so as to manage EMIs easily.
- The manual calculation can be eliminated as it leads to inaccurate results and is time-consuming.
- It can be used anywhere with the help of a computer, mobile, tablet, etc.
- It presents the results based on the fractional rate of interest.
- As it shows results on an immediate basis, it helps to save time.
How to use the SBI Home Loan EMI Calculator?
SBI Home Loan EMI Calculator has a user-friendly interface that can be used by anyone by just entering some key variables of the home loan. Below mentioned are some easy steps to use the SBI Home Loan EMI Calculator:
- Enter the loan amount to calculate EMI within the range of 0 to INR 50 lakh.
- Set the interest rate that may vary from bank to bank and even the applicant.
- Enter the loan tenure.
All these variables can be set by moving the calculator sliders on either side to consider the variations of variables.
Different Ways to Pay SBI Home Loan EMI
Below mentioned are different ways to pay SBI Home Loan EMI:
- Post Dated Cheques
- Issue Standing Instructions to the Bank
- Direct Deduction for monthly installments by the employer
Charges Applicable on Non-Payment of SBI Home Loan EMI
Few charges are attracted in case of non-payment of SBI Home Loan EMI such as Late Payment Fee, penal Interest, Cheque Dishonor Charges (in case of PDCs), etc.
(if the EMI is unpaid for 30 days from the due date, for any reason, including a bounced cheque)
|@2% p.a. on the irregular amount for the period of irregularity, over and above the applicable rate|
|Failed / Non-Payment of EMI||INR 500 + GST per EMI missed|
|Cheque Return (for insufficient funds only)||For cheques up to INR 1 Lakh||INR 225 + GST|
|For cheques above INR 1 Lakh||INR 350 + GST|
|Failed SI||INR 225 + GST per failed SI|
What is SBI Home Loan Amortization Schedule?
An Amortization schedule allows to evaluate different loan options. It helps to evaluate the comparison of lenders, selection of loan tenure, or making a decision to refinance the loan. Also, it helps in analyzing the savings in terms of paying off debts early.
The EMI will remain the same throughout the loan tenure in case the home loan is taken on a fixed rate of interest. However, the principal and the interest component differs per month. The process of calculating EMIs is known as Amortization.
Below mentioned is the Amortization Schedule for 12 months of above-quoted example is:
|Year||Beginning Loan Balance||EMI*12||Interest Paid Yearly||Principal Paid Yearly||Outstanding Balance|
- What are the Tax Benefits of the SBI Home Loan EMI Calculator?
Below mentioned are the sections that cover tax benefits in the case of home loans:
|80C||Up to INR 1.5 Lakh on the home loan principal|
|24(b)||Up to INR 2 Lakh on the home loan interest paid.|
|80EEA||Additional deduction of up to INR 1.5 Lakh on home loan interest paid. Only available to borrowers under the affordable housing scheme.|
- What is the LTV of SBI Home Loans?
Below mentioned is the LTV Property Value of SBI Home Loans:
|Less than INR 30 Lakh||90%|
|INR 30 Lakh to up to INR 75 Lakh||80%|
|Above INR 75 Lakh||75%|
- How can the EMI of SBI Home Loan be reduced?
Below mentioned are the ways that can help to reduce the SBI Home Loan EMI:
- By making part prepayments: By making prepayments of the home loan partially, i.e. paying a portion of the outstanding principal early provides an option to either reduce EMI or tenure. Choose a lower EMI only when rising home loan interest rates increase the EMI burden.
- By selecting home loan balance transfer: One can transfer the outstanding loan amount to lenders who offer lower home loan interest rates, longer loan tenure, or both. But, before going for a home loan balance transfer, make a cost-benefit analysis to ensure that the interest savings outweigh the transfer costs.