An Accurate Estimation of Monthly SBI Home Loan EMI, is Just a Click Away!

Home loans play a vital role in fulfilling our dreams of having a villa/apartment, which we can Call “Home”. These are considered as the long-term financing option provided by banks and financial institutions. For economically weaker, low Income and the middle-income group of the society, The State Bank of India(SBI) sanctions home loans under the scheme of Pradhan Mantri Awas Yojana (PMAY). The rate of interest is between 6.95% and 7.60% as per the information given.

Borrowers can avail of subsidies on their home loans under PMAY’s Credit Linked Subsidy Scheme (CLSS). Before applying for a Home Loan, you can easily calculate the monthly EMI using SBI home loan emi calculator. It is an online calculator that enables the borrower to calculate the number and amount of the monthly instalments in a blink of an eye.

One has to merely go to the website, enter the desired loan amount, tenure and rate of interest and click on the “Calculate” option to get the details.

Home Loan EMI Calculator

How an SBI Home Loan Calculator Work?

With the help of the monthly reducing balance method, SBI calculates EMI payments. By the end of every month, the interest amount is calculated on the principal outstanding. Therefore, each time the borrower pays SBI home loan emi, a particular portion of it goes towards repaying the outstanding principal and the rest of it is used to pay the interest amount. Hence, the principal amount keeps decreasing. SBI calculates interest on the reduced principal amount while lowering interest cost with every EMI.

SBI Home Loan Calculator follows a particular formula to calculate the Equated Monthly Instalment(EMI).

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

• P = Principle or the loan amount
• R = Interest rate per month.
• N = Number of the monthly instalment or the loan tenure (in months).

Example: If a home loan borrower gets a principal(P) loan amount of INR 35,00,000 from the SBI Bank with an interest rate (R) of 8.56% per annum through a tenure (N) of 30 years. Putting all these details in the formula, we get:

EMI = [3,500,000 * 8.65 * (1 + 8.65) ^ 30] / [(1 + 8.65) ^ 30 – 1]

Hence, the monthly instalment comes out as Rs. 27,285 and the EMI paid for the year is Rs. 327,419 (12* 27,285).

Benefits of SBI Home Loan EMI Calculator

• It is free of cost and can be used by just visiting the official website of SBI.

• It is an extremely easy to use, dependable and convenient tool to calculate the accurate EMI amount.

• Using the SBI Home Loan calculator, you can derive the EMI amount by merely entering repayment tenure, loan amount and rate of interest.

• It is accessible from all devices.

  Eligibility Criteria to Apply for SBI Home Loan

• SBI offers different home loan schemes to meet the requirement of an individual person. Each scheme has different eligibility criteria. Indian citizens as well as NRIs can apply for the home loan.

• The age of the borrower should be between 18-75 years of age.

• The borrower should have a fixed regular source of income, based on that, the bank calculates your capacity to pay the instalments and sanctions the loan.

• To get a home loan sanctioned, you need to have a good Credit Score. To achieve good scores, ensure you pay the instalments or EMIs regularly on time. Defaulters generally don’t get home loans sanctioned easily.

Payment Process of SBI Home Loan EMI

• You can issue post-dated cheques (PDCs).
• You can issue Standing Instructions (SI) to your bank.
• You can also choose to get a direct Deduction of monthly instalments from your employer.