# Everything to Know About SBI Home Loan Calculator

Planning your finances to avail a home loan? Wondering if you can repay all the monthly EMIs on time? Use the SBI home loan calculator to plan your budget. An EMI calculator does not just offer the monthly amount but also provides key insights into the entire repayment process. SBI offers five types ofÂ home loan EMI calculators, which include Flexipay and Maxgain. Each SBI home loan EMI calculator helps you to save time on calculations, compare options to choose the best loan suited to your needs, and is also very easy to use.

It is always best to know your monthly dues and plan your budget, before biting off more than you can chew. While it can be tempting to take higher loan amounts to get tax benefits, it will be pointless if you cannot clear the monthly EMIs. Read on to learn more about SBI home loan calculator, their benefits, and how to use them.

## How does the SBI Home Loan Calculator work?

TheÂ EMI calculatorÂ uses the formula, P x R x (1+R)^N / [(1+R)^N-1], where P is the loan amount, N is the loan tenure, and R is the monthly interest rate. However, you do not have to do any manual calculations with the EMI calculator. You only have to input the loan amount you want to avail of, the interest rate, and the number of years you want to keep the loan running, and the SBI home loan calculator will display the EMI amount.

For example, if you want to get of a loan of INR 25 lakhs and repay it over the course of 20 years with an annual interest rate of 7%, you have to pay INR 19,382 every month. The SBI home loan calculator also shows you the remaining amount payable, how much interest you have left, and how much of the principal amount is due.

## Components of an SBI Home Loan Calculator

The SBI has 6 components. Hereâ€™s a brief summation of these components.

• Loan amount:Â This is the money that you want to borrow from the SBI bank.
• Loan tenure:Â You can select a home loan tenure from up to 5 to 30 years. It refers to the time period under which you have to repay the loan amount.
• Interest rate:Â The SBI charges a fee for loaning you a particular sum of money to buy your house. It is called the SBI home loan interest rate. It is added to your principal loan amount and can either be fixed or floating.
• Processing fee:Â This is the money that the SBI charges to process your loan application.
• EMI amount:Â As its name suggests, it is the amount that you have to repay monthly to the SBI to clear your dues on time.
• Amortization schedule:Â This is a table that shows the break up of your EMI amount into principal and interest amounts that are due over the course of your loan period. It comes up as a display beneath the EMI amount when you input all the data.

## How to use the SBI Home Loan EMI Calculator?

The SBI home loan calculator is very easy to use. You can save money as well as time when using SBI home loan EMI calculators. To use the SBI home loan calculator, follow these steps.

• Head to the official website of theÂ SBI bank.
• Look for the â€˜Calculatorsâ€™ option on the blue header on the web page. Click on it.
• The â€˜Home Loan EMI Calculatorâ€™ will be displayed.
• Adjust the home loan amount, loan tenure, and interest rate. The detailed calculations will be displayed on a table on the right side of the website.
• As soon as you enter your data, you will also see the amortization table underneath it.
• The SBI home loan EMI calculator shows you the monthly EMI amount to help you evaluate if you have the budget to pay off the loan.

## Why should you try the SBI Home Loan Calculator?

There are several benefits of using an SBI home loan EMI calculator. Some of them are as follows:

• Compare loan options:Â By checking the EMI amount for different lenders, you canÂ compare loansÂ and choose the one that best fits your needs and financial goals.
• Plan your budget:Â It is always beneficial to get an idea of how much money you have to pay each month toward your loan repayment.
• Save money:Â If you choose a longer repayment tenure, you are most likely going to pay higher interest over time, while if you choose a shorter repayment tenure, you have to pay higher monthly installments each month. Hence, if you use the calculator to get an idea of your monthly dues, you can plan your finances better.
• Avoid errors:Â With a home loan calculator, you do not have to worry about miscalculations or budgeting errors. Since you do not have to make manual calculations, you can always have accurate and reliable results.

If you choose a home loan option that requires you to pay hefty processing fees, you must include that charge in your loan amount.

To summarize, an EMI home loan calculator is almost an indispensable tool for anyone wanting to take aÂ home loan. An EMI home loan calculator helps you to compare different loans, choose the one that fits your financial needs, and make informed decisions about your loan repayment. It is always best to check the EMI amount to understand if you can fit the monthly settlement into your budget.

It may seem like an additional step, but it is always beneficial to get an idea of how much would your monthly dues be if you opt for the home loan. Do not try to stretch yourself too thin to acquire a higher loan amount. Ideally, you should not spend more than 60% of your income on EMIs. It is not sustainable in the long run.

If you are planning to take a home loan and would like a second opinion, reach out to Andromeda. You can use their EMI calculator as well as consult other experienced professionals for financial advice.