Home loans are the best financial solution when purchasing a property. Buying a home requires a huge amount. The applicants can lend money from financial institutions to buy the property and repay the loan with interest in a specified tenure. All banks provide mortgage loans to help their customers. The State Bank of India (SBI) is one such bank that provides the best rates on house loans. It allows users to pre-plan for their house loan using the SBI home loan EMI calculator.
By taking the applicant’s input on the principal amount, interest rate, and tenure, the bank delivers the best home loan plan to aid customers in their housing loan planning. While on the other hand, the customers can use the Home Loan EMI caluclator in order to be well aware of their EMI amount before aplying for a home loan. Since having multiple loan rejections can have a negative impact on the applicant’s CIBIL score. Besides, the SBI provides special home loan interest rates (among all banks) to women borrowers.
What Is An SBI Home Loan EMI Calculator?
An SBI house loan EMI calculator is an online device that measures the monthly installments an applicant needs to pay after borrowing the loan. It works on a mathematical algorithm and provides fast and more accurate calculations than manual mode. SBI calculators measure the house loan with the lowest home loan interest rate of all banks at 7.55%.
What Are The Benefits Of Using An SBI Home Loan EMI Calculator?
The SBI house loan EMI calculator allows customers to make an informed credit decision. Besides, it assists users in negotiating with the lender to get a better interest rate. The following are some other advantages of using an SBI house loan EMI calculator:
- It delivers correct output.
- The SBI house loan EMI calculator calculates the EMIs faster.
- It is easy to access from any electronic device and at any time.
- The SBI huose loan EMI calculator is useful in comparing the offers with other banks.
What Is The Formula For Calculating EMI In SBI Home Loan EMI Calculator?
The formula used to calculate the Equated Monthly Installment (EMI) through the SBI house loan EMI calculator is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]. P denotes principal loan amount, R denotes monthly interest rate, and N denotes the number of monthly installments.
What Are The Steps To Calculate Home Loan EMI Through SBI Home Loan EMI Calculator?
There are certain steps involved in the process of using any EMI calculator. Make sure that you are aware about those steps in order to be able to use the EMI calculator. Using the SBI home loan EMI calculator to derive house loan EMI is a simple task. Applicants can follow the steps mentioned below to calculate the EMI:
- Visit the SBI house loan page.
- Enter the principal amount, house loan interest rate, and tenure.
- Click on ‘Calculate your EMI’ to generate the results.
Amortization Schedule
Amortization is the process of calculating EMIs. The EMI remains constant over the year if an applicant chooses a fixed home loan interest rate all banks. The interest rate and the principal, however, may vary each month. An amortization timeline based on the initial 12 months is shown below.
| Month | Principal | Interest |
| 1 | ₹ 8,984 | ₹ 45,000 |
| 2 | ₹ 9,051 | ₹ 44,933 |
| 3 | ₹ 9,119 | ₹ 44,865 |
| 4 | ₹ 9,187 | ₹ 44,796 |
| 5 | ₹ 9,256 | ₹ 44,727 |
| 6 | ₹ 9,326 | ₹ 44,658 |
| 7 | ₹ 8,984 | ₹ 45,000 |
| 8 | ₹ 9,395 | ₹ 44,588 |
| 9 | ₹ 9,466 | ₹ 44,518 |
| 10 | ₹ 9,537 | ₹ 44,447 |
| 11 | ₹ 9,608 | ₹ 44,375 |
| 12 | ₹ 9,681 | ₹ 44,303 |
Conclusion
Making pre-loan preparations is crucial to figuring out how much we can borrow from the bank and whether a particular amount can be repaid on time. Without this understanding, a borrower might have trouble repaying the bank for the loan. Therefore, the SBI house loan calculator aids applicants in making this decision before sending the loan application for approval.
