HomeBusinessWhy is computing your EMI using the SBI home loan EMI calculator...


Why is computing your EMI using the SBI home loan EMI calculator important before availing of a home loan?

SBI Home Loan EMI Calculator assists you to compute your EMI, interest cost and the overall amount payable against different interest rates, loan amounts and loan repayment tenures. It assists you to decide the optimum repayment tenure and SBI home loan EMI depending on your crucial financial goals and EMI affordability. Note that the SBI Home Loan EMI Calculator is available online, which computes your EMI instantly on the provision of asked details. Like, the SBI home loan calculator, there are other calculators too, like the HDFC home loan EMI calculator.

For instance, a loan of Rs 50 lakh with an interest rate of 7.5 percent p.a. and loan repayment tenure of 20 years would present a loan EMI of Rs 40,280 and overall interest payable of 46,67,118.

If you want to secure the best deal on your home loan, you should seek the help of an experienced mortgage broker, as they work directly with multiple lenders to personalise the best rates for their clients.

Home loan interest rate of top HFCs/banks

Rate of interest (% p.a.)
Lender name Up to 30 lakhs Above 30 lakh and up to 75 lakhs Above 75 lakhs
SBI 6.70 – 7.65 6.70 – 7.15 6.70 – 7.15
LIC Housing Finance 6.70 – 7.85 6.70 – 8.05 6.70 – 8.05
Tata Capital 6.70 onwards 6.70 onwards 6.70 onwards
Godrej Housing Finance 6.59 onwards 6.59 onwards 6.59 onwards
Bajaj Finserv 6.65 – 14 6.65 – 14 6.65 – 14
L & T Housing Finance 6.75 – 7.75 6.75 – 7.75 6.75 – 7.75
IDFC First Bank 6.90 onwards 6.90 onwards 6.90 onwards
Union Bank of India 6.60 – 7.60 6.60 – 7.65 6.60 – 7.65
Bank of Baroda 6.50 – 8.00 6.50 – 8.00 6.50 – 8.25
Punjab National Bank 6.55 – 7.95 6.50 – 7.65 6.50 – 7.60
PNB Housing Finance 6.75 – 12.00 6.75 – 12.00 6.90 – 9.75
Kotak Mahindra Bank 6.55 onwards 6.55 onwards 6.55 onwards
ICICI Bank 6.70 – 7.55 6.70 – 7.55 6.70 – 7.55
Axis Bank 6.75 – 11.50 6.75 – 11.50 6.75 – 11.50
HDFC Bank 6.70 – 8.45 6.70 – 8.60 6.70 – 8.70

 If you are looking to Apply For SBI Home Loan, ensure your affordability to borrow using the SBI home loan EMI calculator. A calculator is an online tool that can be used to compute SBI home loan EMI against distinct interest rates, loan amounts and loan repayment tenures. It will allow you to decide the correct repayment tenure and amount to ameliorate your EMI affordability. Additionally, it eliminates inaccurate and manual EMI calculations. Discussed here is how home loan EMI is computed and how it can be repaid, and more.

How can you use the SBI home loan calculator?

Stepwise approach to using the SBI home loan EMI calculator:

Step no. 1: Place in the desired loan proceeds.

Step no. 2: Place the applicable interest rate.

Step no. 3: Enter the repayment tenure as per your preference.

As you place in the details, the EMI amount will be displayed. Apart from showing the housing loan EMI, the home loan EMI calculator also shows the amortization schedule and overall interest and loan payable amount.

How is the home loan EMI computed?

SBI works on the monthly reducing balance method to compute EMI repayments where the interest component is computed on principal outstanding towards the end of every month. So, each time you repay your SBI home loan EMI, a specific portion of the same goes towards repayment of the outstanding principal component, and the rest goes towards the interest component. It assists in lowering the principal component. On the reduced principal, SBI computes interest, which lowers interest outgo with every EMI.

SBI home loan calculation of EMI

With the assistance of a table, let us view how home loan EMIs change with change in the repayment tenure, interest rate and loan amount.

Loan amount (Rs) Repayment tenure (years) Rate of interest (P.A) EMI (Rs) Interest payable
Rs 25 lakh 15 6.5 % Rs 21,778 Rs 14,19,983
20 7.5 % Rs 20,140 Rs 23,33,559
30 8.5 % Rs 19,223 Rs 44,20,221
Rs 50 lakh 15 6.5 % Rs 43,555 Rs 28,39,966
20 7.5 % Rs 40,280 Rs 46,67,118
30 8.5 % Rs 38, 446 Rs 88,40,443
Rs 75 lakh 15 6.5 % Rs 65,333 Rs 42,59,949
20 7.5 % Rs 60,419 Rs 70,00,677
30 8.5 % Rs 57,669 Rs 1,32,60,664

 How to repay your SBI home loan EMI?

To repay your SBI home loan EMI, you may consider the following routes:

       Issue PDCs (Post Dated Cheques)

       Issue SI (Standing Instructions) to your bank

       Choose direct deduction of EMI by employer

Charges on non-repayment of SBI home loan EMI

Non-repayment of home loan EMI might attract some charges like penal interest, late payment fee, cheque dishonour charge etc. To know how much the bank will charge, ensure to contact the loan officer for details. Your loan agreement may even mention charges that might be applicable in these cases.

Frequently asked questions (FAQs)

       Why is it necessary to compute EMI before you apply for a home loan through SBI?

SBI home loan EMI calculator provides an estimated amount that you must repay towards your home loan. Info about this payout, when known beforehand, assists you in making a better decision about how much you can afford each month as EMI. Also, it assists in preparing your monthly budget beforehand to ensure payment on time and avoid any home loan default.

       How can you lower your SBI home loan EMI?

Few practices that can assist you to lower your home loan EMI are:

       Pay maximum down payment. Doing this, you will borrow very less, resulting in lower EMI and overall interest payable.

       Prepay your home loan partly. It will even lower your home loan interest, and EMI, provided the repayment tenure stays unchanged.

       Home loan balance transfer is a feasible option where you can easily transfer your outstanding loan to another lender providing a lower interest rate, higher repayment tenure or both. A lower interest rate on a home loan will lower your overall interest payable along with your monthly payment, thus lowering your entire loan burden.

       What will be the SBI home loan EMI of Rs 30 loan amount?

EMI value of Rs 30 lakh home loan is dependent on 2 major factors – interest rate and repayment tenure. Once you know these values, place them in an online EMI calculator and get your EMI in just seconds. For a loan amount of Rs 30 lakh, an interest rate of 6.5 percent p.a. and repayment tenure of 30 years, the loan EMI will be Rs 18,962, while the overall interest payable will be Rs 38,26,335.

Related articles

Latest posts