Having a home in the big city has become a big dream in today’s era. Due to the growing population, limited space and expensive real estate price, people from small towns are turning to metro cities in search of better lives. But to fulfill this dream, we often have to take a home loan from the bank. In such a situation, if you are also looking for a trusted bank, then SBI (State Bank of India) can be a great option for you.
SBI Home Loan: What do your EMI depend on?
When you take a home loan from SBI, your EMI (monthly installment) mainly depends on these three things:
- Loan Amount – That is, how many rupees you have borrowed from the bank.
- Interest Rate – The bank which decides on the basis of your credit score and loan tenure.
- Loan Tenure – That is, for how many years you have taken a loan.
Based on these three factors, SBI decides the EMI of your loan, which you can guess before the bank’s website or any online Home Loan EMI Calculator.
What is the role of credit score in loan?
The better your credit score, the lower interest rate you will get. usually:
- 750+ score – great deal, minimum interest rate
- 650-749-Fine deals, a little more interest
- Less than 600 – High Risk, More Interest and Limited Options
SBI is currently offering the interest rate starting from 8.5% on home loans. Also, the bank also charges processing fees for loan processing, which usually contains up to 0.25% of the loan amount (GST extra). This charge varies in different banks.
EMI calculation: How much will the month spend?
If you are thinking of taking a loan of ₹ 50 lakh from SBI, then there is a simple calculation here that will explain the difference between the loan period and EMI.
| Loan period | Monthly EMI | Total interest | Total payment |
|---|---|---|---|
| 20 years | ₹ 43,391 | ₹ 54,13,879 | ₹ 1,04,13,879 |
| 25 years | ₹ 40,261 | ₹ 70,78,406 | ₹ 1,20,78,406 |
| 30 years | ₹ 38,446 | ₹ 88,40,443 | ₹ 1,38,40,443 |
Note: Interest rate is accepted 8.5% annually.
The longer the loan duration, the less EMI will be, the more interest will have to be paid.
Is EMI calculator necessary?
Absolutely. EMI calculator already helps you understand how much you will pay every month, and in the end the total money will go to repay the loan. This is a very important tool for your financial planning.
SBI and many other banks provide free EMI calculators on their website where you are your:
- Loan amount
- Interest rate
- Loan tenor
You can guess accurate EMI and total payment in minutes by adding.
The Post Home Loan EMI Calculator: Dream of buying a house in big city and how to calculate EMI accurately? Know every important thing related to SBI first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
