People who take a home loan for repairing a self-occupied property or to buy a new house or expand one always have to keep in mind some basic things of the loan. They are the principal amount, rate of interest and tenure. However, most home loan borrowers face a problem in understanding the maximum principal amount that they should loan according to their affordability. Every home loan borrower should be confident about repaying the loan regularly. To ease the process, home loan EMI calculators are available.
About SBI home loan EMI calculator
You can get access to the SBI home loan EMI calculator on the official website of the organization. It is also available on a few other sites too. The calculator gives you the exact value of the monthly EMI that needs to be paid to the bank. As a borrower, you need to place the amount of principal importance, tenure, and the rate of interest as per your word with the bank.
How does SBI home loan calculator work?
The SBI home loan EMI calculator actually breaks down the total loan as per the norms of the bank. This is done with the help of a calculation formula E= P.r. (1+r).n.(1+r).n-1. A borrower has to pay a specific part of the principal amount as well as the interest. With each payment, the outstanding value decreases, resulting in the minimization of debt.
Furthermore, you have to pay the processing fee to SBI as you take the home loan. In general, the processing fee ranges from Rs. 2000 to Rs. 10,000. It is a one-time payment.
Benefits of using the SBI home loan EMI calculator
There are some benefits of using the home loan EMI calculator of SBI. They are mentioned in details below:
Better management of expenses
You can manage your expenses in a better way if you know the exact EMI of your home loan. As it might be a lump sum amount, you need to save it primarily. This will minimize the chances of spending off the money that you need to give as the home loan repayment.
Helps you to determine the right tenure
It can be easier for you to determine the right tenure of the home loan that makes the repayments affordable for you. The basic fact that you must keep in mind is to choose a long tenure for the home loan.
Going for preclosure
The EMI calculator can show you the amount of monthly EMI anytime while you are continuing with a home loan. Once you reach a position where you can pre-close a home loan, you must go for it.
A home loan EMI calculator is one of the vital instruments that you can use when taking a home loan. You can talk with the bank executives in detail about it when making a loan. The bank executives can instruct you on the ways of rightly using the home loan EMI calculator.