SBI Home Loan EMI Calculator

Home is an integral part of anybody’s life where one finds solace. For purchasing or buying any property home loans are an ideal financial option. All the businessmen, self-employed, and salaried people are entitled for taking up SBI home loans. Women borrowers can avail special interest rates. In case someone is unsure about the monthly installments, using an SBI home loan calculator can prove to be beneficial. It will allow the person to pre-plan the repayment process once they are accustomed to the interest and EMI amounts.

SBI Home Loan EMI Calculation Formula

Curious about how the home loan EMI calculator works? Well, it works on the following standardized formula as mentioned below:

E = P x R x (1+R)^n / {(1+R)^n – 1}

where
P = Principal/Loan Amount
E = Applicable amount of EMI
r = Rate of interest per month (annual rate of interest divided by 12)
n = Tenure (in months)

For example, if any borrower avails a loan of 40 lakh for a tenure of 10 years at a 6.80% p.a. rate of interest, the applicable EMI will be –

E = 40,00,000 × .0056 × (1+.0056)^120/([(1+.0056)^120]-1)
EMI = Rs. 46,032

Important Things to be considered while applying for SBI Home Loan

Buying a new home is no less than a dream coming true for many. People save money penny by penny for their entire lifespan to achieve this goal. Therefore it’s crucial to look after the following scenarios before applying for any kind of Home Loans:

• Avoid submitting loan applications with multiple banks simultaneously
  Frequent submission of loan applications to multiple banks can tend to the rejection of loan application. It even lowers down the credit score. Therefore it’s advised not to submit multiple applications with different banks within a short time period.
• Checking for home loan processing fees and other charges
  It’s imperative to know all the charges such as processing fees, lawyer fees, and other miscellaneous upfront in order to get better clarity on the home loan offers. It’s even possible to negotiate the total charges before accepting any home loan offer.
• Comparing home loan offers from various lenders
  Comparing home loan offers from different lenders can be a challenging task. The lender who offers a loan at lower interest rate may demand for high processing fees and other associated charges. Therefore it’s vital to compare the interest rates and the corresponding EMIs payable for the chosen tenure.
• Reading the documents carefully
  There are some situations where financial loss has been incurred on the borrower person of the home loan because of signing documents hastily without getting acquainted with it. Therefore it’s a good practice to read the home loan document carefully before signing them in a frenzy to save time. In case any information looks unclear and unnecessary, one shouldn’t hesitate to ask the bank executive for clarification before going ahead on the loan offer.
• Choosing between bank and NBFC for home loan
  Apart from banks, NBFC (Non-Banking Financial Companies) also offer home loans. NBFCs typically charge a higher interest rate compare to other banks. While banks generally have stringent eligibility criteria, and the processing/disbursal of the loan may take longer than expected, it’s quite easier to get a home loan from an NBFC

How to get a home loan from an SBI bank in 5 easy steps through online?

Is having a dream house always in someone’s mind? Fret not! Let’s take a quick glance at 5 easy steps towards fulfilling this dream of car by taking up 5 easy steps of SBI home loan.

Step 1: Identify the requirement

It’s very important for the borrower to identify the main motive behind taking up the personal loan. The need of the borrower may range from wedding or birthday plan, home renovation to any domestic or foreign vacation trip.

Make sure the personal loan amount doesn’t exceed the budget constraint of the borrower. Else, the borrower needs to repay the hefty amount with much struggle later on.

Step 2: Check the eligibility criteria

It’s vital to check on the eligibility criteria of the desired loan type before settling down to take up the personal loan. By doing so, it also helps the borrower to know how much maximum amount can be taken as a personal loan depending on the factors like age, sex, income status etc.

Step 3: Calculate monthly installments

It’s quite beneficial to calculate the monthly installment (EMI) of the desired personal loan beforehand to know whether it would suit to the borrower’s current monthly income or not.

By using SBI EMI Calculator, a customer (borrower) can modify the interest rate and tenure of the personal loan matching with the current monthly income to avoid any trivial situations later on.

Step 4: Approach the bank for acknowledgement

After submitting the application online for the personal loan approval, it’s advisable to check on it separately as well by either visiting the nearest bank branch or by calling to the customer support service of the SBI bank for the confirmation and acknowledgment of the same.

Step 5: Submit the documentation appropriately

It’s advisable to read on the instructions carefully before applying for the personal loan. Take a note on all the important documents that need to be uploaded and submitted online for the loan approval.

The documents may include bank statements, income proof (salary slips), address proof (temporary or permanent). In case of pre-approved loans, the loan amount is reflected to the borrower’s account within 10 seconds while for non-SBI customers it takes about 4 hours for the loan amount to get reflected into the borrower’s account.

Benefits of SBI personal loan EMI Calculator

Though there are numerous other online personal loan calculators available in the market, SBI personal loan Calculator is easy to use showcasing the following facilities as under:

• It lets one to identify the eligibility criteria with the respective bank
• It lets one to know the monthly payment for the term opted for the personal loan.
• It lets one to find out the current interest rate of the bank and use it to get the exact EMI.
• SBI can provide offers to only direct customers in case any organization one works at has their salaried account with SBI.
• Negotiations can be also done a bit on the rate.

Drawbacks of SBI personal loan EMI Calculator

Any technology can be both a boon and bane as nothing is perfect. It’s user’s responsibility to understand all the pros and cons of any software or application before using it to know whether it suits best for your needs or not. Let’s have a look at some negative aspects of SBI personal loan Calculator:

• Approval of any personal loan application to SBI is completely at the discretion of the loan manager.
• There’s no guarantee of any fixed interest rate and it may vary as per the current trends.
• A penalty can be charged in case the loan is paid prior to its respective tenure.