State Bank of India (SBI) is the largest public sector bank and the biggest home loan provider in the country. This government-owned financial institution deals not only with banking but also insurance and other related financial services. As SBI’s results declared at the end of the 4th quarter of 2015-16, it has a total interest income of Rs.42,831 crore and deposits worth Rs. 17,30,722 crore.
The bank’s interest rates for home loans are among the lowest, and its repayment terms among the most flexible, in the country. With a branch in almost every single big and small town in India, SBI stands at an advantage in penetration. Women and Scheduled Castes and Scheduled Tribes get special rates, and the bank has a specialized scheme for almost every kind of customer.
The easiest way to find out whether you will be able to afford a home loan or not, is to use an EMI Calculator . An Equated Monthly Instalments Calculator helps you arrive at the approximate EMIs for your loan amount. You can also determine what interest rate, loan tenure and monthly repayment amount works the best for you.
BankBazaar has one of the best EMI Calculators online because it allows you to factor in the processing fees as well. It also gives you the option of setting target pre-payment amounts in order to reduce the overall loan burden. Before using the EMI Calculator, check SBI Home Loan interest rates, fees and charges, and various SBI Housing Finance Schemes available with the bank at BankBazaar.
In order to use the BankBazaar EMI Calculator for SBI Home Loans, follow the below steps:
Let us input some figures in the EMI Calculator and see what results it shows.
Loan amount: Rs. 50 lakh
Tenure: 30 years
Interest rate: 9.4%
Processing Fee: 0.35%
Would you like to make pre-payments? No
Result: Your Monthly Loan EMI – Rs.41,678; Total Interest Due – Rs.1,00,04,222; Total Amount Payable – Rs.1,50,21,722
Let us modify this slightly by adding pre-payments but keeping the other numbers.
Would you like to make pre-payments? Yes.
Pre-payment frequency: Once in a year
Pre-payment starts in: 60 months (5 years)
Pre-payment amount: Rs. 50,000
Pre-payment fee: NIL
Pre-payment applies to: Sum of all pre-payments
Result: Your Monthly Loan EMI – Rs.41,678; Total Interest Due – Rs.75,03,474; Total Amount Payable – Rs.1,25,20,974
Here you can see the difference a pre-payment of Rs. 9.5 lakh in 25 years makes, to the total amount payable to the bank at the end of 30 years – more than Rs. 25 lakh! You can modify the interest rate, tenure, and loan amount this way to figure out how much loan you can afford to take at your income.
|Year||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance|
Yes. The EMI Calculator is a common tool that is not tied with any particular bank or financial institution. The important thing is that you must know the interest rate and processing charge of the bank/s that you are considering for home loans.
Yes. SBI has its own EMI calculator too, but it does not allow to calculate and add in the processing fees or pre-payments.
You have to keep in mind that an EMI calculator estimates your loan amortization details based on the data you input through it. The banks may have other hidden charges that might add into the loan amount. In addition, if yours is a floating home loan, then the interest rate changes every year based on the MCLR or Base Rate change. Even fixed-rate loans are fixed only for 2-5 years and then reverts to floating rate. Even a slight change in interest rate will make a difference to the total loan amount you repay the bank, because of the longer duration of the loan. These variables limit the accuracy of an EMI calculator.