How to Calculate Home Loan using SBI Home Loan EMI Calculator?


A mortgage often referred to as a home or housing loan, is an amount that a person borrows from banks or other lending institutions. The borrower must repay the loan and the interest over a pre-decided period. It can range from 10 to 30 years. The monthly payment that the borrower pays to clear off his debt is called Equated Monthly Instalments or EMI. The SBI Home Loan EMI Calculator can be used by the borrower to determine the monthly instalment of the home loan before applying for it.

Home loan choices come in various forms and are tailored to each circumstance. You can use home loans to purchase either commercial or residential properties. The home loan sanctions have increased significantly over the last few years. The State Bank of India has been a part of approving mortgage loans under the Pradhan Mantri Awas Yojana (PMAY). Under Yojana’s Credit Linked Subsidy Scheme, qualified borrowers may additionally receive discounts on their home loans. 

What is the SBI Home Loan EMI Calculator?

The SBI house loan EMI calculator is an online tool that enables borrowers to quickly and easily determine their monthly payments (EMI), interest costs, and total amounts due for various loan amounts, interest rates, and loan terms with just one click. Importantly, it assists you in selecting the ideal tenure and EMI for your SBI home loan, depending on your ability to pay the EMI and important financial objectives.

When the borrower selects the “Calculate” option and enters the desired loan amount, loan term, and interest rate, an accurate result will appear on the screen. As a result, it is a crucial instrument for loan payers to conveniently and easily determine the total of their loan instalments.

How does the SBI Home Loan EMI Calculator work?

The SBI home loan calculator uses the following formula:

EMI is equal to [P*R*(1+R)^N]/[(1+R)^N-1]

EMI stands for equivalent monthly instalment.

P is the loan balance or the principal.

R is the monthly interest rate.

N is the number of monthly payments or the length of the loan.

SBI calculates EMI payments using the monthly declining balance approach, in which the interest rate is based on the balance of principal owed at the end of each month. Therefore, a portion of the EMI you pay on your SBI home loan is used to pay off the outstanding principal, and the remainder is used to pay interest. The State Bank of India calculates interest on this lower principal, which lowers interest payments with each EMI.

Benefits of the SBI Home Loan EMI Calculator

Calculating the EMI manually for a house loan can be difficult, time-consuming, and potentially produce erroneous results. It is advantageous to calculate the home loan EMI online using the SBI home loan EMI calculator. The SBI Home Loan EMI Calculator is preferred for several reasons, some of which are listed below:

  • It assists the borrower in accurately calculating the amount that can lower the EMI.
  • It makes it possible to choose the ideal term, ensuring that the borrower can easily manage the monthly instalment.
  • It may be used by anybody at any time and anywhere using a smartphone, tablet, computer, and  more.
  • The amount that must be paid toward a home loan is approximated by the SBI home loan EMI Calculator. When understood in advance, this information regarding the monthly payout aids prospective borrowers in selecting the ideal tenure and EMI for their SBI home loan while considering their ability to repay the loan and important financial objectives.

Conclusion

Home loans are now referred to as the long-term financing option offered by all banks and financial institutions for building and acquiring real estate. The SBI home loan EMI calculator is a good tool for determining a home loan’s monthly payments. 


Ashish jha

Subscribe to our Newsletter

Subscribe to receive the weekly Newsletters from our website. Don’t worry, we won’t spam you.