Many a times we fail to gauge the impact a home loan is going to have on our finance. And, it’s not easy to do so, let’s be fair to say. The greater loan amount and longer tenure make it that much difficult, particularly for those new to the segment, to understand and plan their finances accordingly.
Amidst the confusions doing the rounds, most often pick State Bank of India (SBI) for a home loan because it’s popular and accessible with all those 25,000 odd branches across the country. SBI offers a home loan for as long as 30 years.
Considering the prices homes these days command, the loan amount remains invariably in big lakhs and even goes past the crore mark, making you ponder every second. Thankfully, there’s SBI Home Loan EMI Calculator that computes the sum you should be ready to pay over the course of a debt.
SBI Home Loan Interest Rate – A Vital Element of EMI Calculator
SBI provides home loans at interest rates of 8.35%-8.40% per annum for a loan of up to ₹30 lakhs, in the case of salaried. Non-salaried must be ready to pay the debt at 8.45%-8.50%. When the loan remains above ₹30 lakhs to ₹75 lakhs, the salaried borrowers can be offered 8.50%-8.60% to service the debt. Non-salaried counterparts would have to pay loans at 8.65%-8.75% per annum. Loans above ₹75 lakhs are offered at 8.60%-8.70% and 8.70%-8.80% for salaried and non-salaried, respectively.
It’s Time to Calculate Your SBI Home Loan EMI
Now that a brief is given on all three important aspects of EMI calculation – loan amount, interest rate and tenure, it’s time to use that now. The EMI, which constitutes both principal and interest, must get paid on time to avoid a default. Let’s calculate the EMI using an example.
Example – Suresh Chaurasia, a 30-year old marketing manager in a reputed firm, applies for a home loan worth ₹80 lakhs to buy a flat in Gurgaon. He wants to service the debt for a period of 20 years. Considering the profession and loan amount he seeks, the interest rate is likely to be 8.65%-8.70%. What is the likely EMI on this loan? In that case, Suresh should be ready to pay an EMI of ₹79,484, which over 20 years will lead to an interest liability of ₹63,07,147.
Formula to Calculate SBI Home Loan EMI
The EMI can be calculated by the formula below
E= [P x R x (1+R)^N]/[(1+R)^N-1]
P= Principal Loan Amount
R= Monthly Interest Rate
N= Number of Monthly Installments
SBI Home Loan Eligibility Based on Salary
SBI, based on your salary, decides the amount of loan it can be comfortable giving you. The quantum of salary, to a greater extent, determines your ability to repay the debt. SBI also checks the expenses to get an idea of how much EMI you can repay month-on-month.
If you want to check your home loan eligibility, you can visit the official SBI website, navigate to home loan and then on to eligibility. You just need to mention a few personal and income-related details to check the eligibility. After knowing the loan amount you are eligible for, you can use the EMI calculator to get an idea of the realistic repayment.
Apply for SBI Home Loan Online
Now apply for SBI Home Loan online from the comfort of your home or office. All you need is an Internet connection. Doesn’t matter whether you have a desktop or mobile, you can just use the Internet in either of the devices to apply. Just make a dash to SBI’s website and apply for a home loan sharing a few personal and professional details. You could even be asked to share a few credit-related details.
SBI would first investigate the details thoroughly and send a team of valuers to assess the cost of the property. These valuers, subsequent to checking the property, will submit a technical and legal report to SBI. Based on the report findings, SBI will decide the value of the property. You can thus get a loan of up to 75%-90% of the property value.