- Home Loan EMI (or equated monthly instalment) is a fixed amount of money paid by you to SBI against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
- With SBI offering Home Loans with loan tenure upto 30 years, the loan EMI can be as low as Rs. 758 per lakh, to make it more affordable and convenient to meet your needs. Lowest Rate of interest offered by SBI on Home Loan is 8.35%.
State Bank of India Home Loan EMI Calculator (Official):
State Bank of India’s Home Loan EMI calculator allows you to calculate the EMI towards your housing loan easily and effectively. Visit the official website of State Bank of India, go to the Home Loan EMI calculator: https://www.sbi.co.in/portal/web/home/emi-calculator
Follow the steps mentioned below:
- Enter the loan amount you wish to avail in the box located beside ‘Amount’.
- Enter the loan tenure in the box located beside ‘Duration’.
- In the third box, enter the interest rate of the Home Loan.
- Click on ‘Calculate’.
- The tool will then inform you about the EMI, interest rates, etc..
Example of SBI Home Loan EMI Per Lakh:
Tenure: 10 Years
Rate of Interest: 9.40%
Processing Fee: 0.35%
||Total Payment (A+B)
||Outstanding Loan Balance
State Bank of India (SBI) Maturity Value Calculator:
Follow the steps mentioned below to calculate the Maturity Value:
- Visit: https://www.sbi.co.in/portal/web/home/maturity-value-calculator
- On the left side of the calculator, there are a few of boxes that you must fill up.
- Enter the principal amount on the first box.
- Enter the annual rate of interest in the second box.
- Enter the duration in the third box. You can also choose day, month or year.
- Click on ‘Calculate’.
- On the right side of the calculator tool you will find the interest value rounded off to the nearest rupee. You will also find the maturity value here.
- If you wish to change any of the values that you entered, just click on ‘Reset’ to re-enter values.
- The interest is compounded on quarterly basis.
Factors Affecting SBI Home Loan EMI:
- Interest Rate: One of the prevalent factors influencing the EMI of a Home Loan is the interest rate. The rate of interest offered by a particular bank plays a very significant role in determining the Equated Monthly Instalment. These two factors, the interest rate and Equated Monthly Instalment, are in direct proportion to each other. The higher the rate of interest, the higher will be the EMI payable towards the loan.
- Principal: The principal, i.e. the loan amount initially borrowed from the bank, also affects the EMI payable towards the Home Loan. Quite naturally, the higher the loan amount, the higher the EMI payable towards the housing loan.
- Loan Tenure: The term or tenure of the housing loan is yet another factor that determines Equated Monthly Instalment. These two factors are inversely proportional to each other. The higher the loan tenure, the lower the EMI payable towards the Home Loan. Conversely, a lower tenure will attract high Equated Monthly Instalments. A point to keep in mind, however, is that a long loan tenure will result in a higher amount of interest paid. Whereas, a shorter tenure will translate to lesser interest paid back to the bank.
Why Should You Calculate EMI Before Taking a Loan?
Calculating your EMI before acquiring for a Home Loan has several benefits:
- Managing your monthly expenses becomes easier once you ascertain the Equated Monthly Instalment that is payable towards the loan availed. One must always keep a steady cash flow to support the standard of living you wish to lead.
- You can accurately assess the EMI payable, helping you stay within your budget.
- Planning prepayments and pre-closures can be done easily and effectively with the EMI Calculator tool.
Will Home Loan EMIs Change in Case of Prepayment?
- State Bank of India allows you to prepay your Home Loan without any charges.
- In case of a prepayment, the principal outstanding will reduce. This allows you to either opt for a lower EMI while keeping the loan tenure the same. Or, you can maintain the monthly instalment and reduce the tenure of the loan. You can either reduce the monthly instalments or keep the tenure of the loan same or you can keep the instalments same and reduce the tenure of the loan. It is advisable to maintain the same EMI and reducing the tenure of the loan as this brings down the rate of interest considerable over the long run.
Home Loan EMI Calculator Formula:
The formula used for calculation of Home Loan EMI is mentioned below:
In this formula, P is the loan amount, r is the rate of interest and n is the tenure of the loan in months.