The hunt for a dream home ends with finding a flat or bungalow of your choice. But the search for a home loan of your choice to fulfill the very purpose takes some time to end, don’t you think so? The home loans generally run for a longer duration of 20-30 years, taking out a heavy chunk of the interest payment from your end. Buying a home could well sit on the top of your agenda, but it’s not the only goal that you would like to achieve.
Therefore, you should look out at the cost factor associated with the home loan seriously and ensure savings for some other goals to accomplish. For that, you need to keep an eye on the offers floated by the lenders from time to time. The name of State Bank of India (SBI) is likely to cross your mind as the bank has a wide operational presence with over 14,000 branches across the country.
It is undoubtedly the most preferred lender because of its massive reach. But even then, do check out the costs associated with a home loan from SBI. How can you do that? The answer is simple, SBI Home Loan EMI Calculator. So, what are you waiting for? Just glance at the calculator with us to ensure a long and memorable stay at your dream home.
How Does SBI Home Loan EMI Calculator Work?
With the help of SBI Home Loan EMI Calculator, you can calculate the monthly installments payable from your pocket. EMI, the short form of Equated Monthly Installment, is the sum total of principal and interest repayments on a monthly basis until the expiry of the loan tenure. There is a formula you can use to calculate the EMI. Want to see the same?
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
P=Principal Loan Amount
R=Rate of Interest
N=Number of Monthly Installments
The P, R and N, as shown above, dictates the amount of EMI you are liable to pay.
More the loan amount greater will be the amount of EMI and vice-versa at the same rate of interest, which sets the tone for the loan repayments. On a higher interest rate, the payout bucket gets heavier and starts to dent your pocket.
So, you should request the lender to lower the interest rate. But what’s more interesting is the correlation that the tenure has with the interest repayments. By looking at the gigantic amount of a home loan, you would be more inclined to opt for a longer tenure so that the EMI liability gets lower. This is where you need to be flexible in your approach. You can opt for a comparatively shorter tenure to reduce the overall outflow of interest at the expense of slightly higher EMI.
For example- You want to apply for a home loan of ₹35 lakhs at SBI for a tenure of 25 years. The interest rate applicable in this case would be 8.60%-8.65% per annum. The EMI would then be calculated as ₹28,419-28,538. While the interest repayments would sum up to ₹50,25,760-50,61,285. So, your overall liability on SBI home loan would be ₹85,25,760-85,61,285.
If we tweak the loan tenure to say 20 years, you could save on the interest repayment by around ₹11-12 lakhs, a staggering amount isn’t it? The EMI, interest and overall payment comes out to be ₹30,596-30,707, 38,42,967-38,69,658 and 73,42,967-73,69,658 over the course of 20 years. Can’t you afford an excess EMI of about ₹2,000 in a bid to save the interest payment by a massive amount as shown above? The answer would be ‘Yes’, I reckon.
Benefits of SBI Home Loan EMI Calculator
The benefits of SBI Home Loan EMI Calculator can be understood from the following points.
- Instant Result
- Higher Reliability
- Easy to Use
- Enhanced Convenience
So, these are the finer details of SBI Home Loan EMI Calculator that you as a serious home buyer should look upon before signing the deal. The calculator works as a vital tool to set a proper course of action to achieve an enjoyable home loan journey that comes with a higher degree of cost reduction. There is no fun in paying more when you can do it at a lesser amount.