1. What is Home Loan Eligibility?

The SBI-style Home Loan Eligibility Calculator determines the maximum loan amount (principal) you can borrow based on your affordable monthly payments, interest rate, and loan term. This follows the standard formula used by many banks including State Bank of India.

2. How Does the Calculator Work?

The calculator uses the home loan eligibility formula:

Where:

• \( P \) — Maximum loan amount (principal, INR)
• \( PMT \) — Affordable monthly payment (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)

Explanation: The formula calculates the present value of an annuity (the loan amount) based on regular payments, interest rate, and duration.

3. Importance of Loan Eligibility Calculation

Details: Knowing your maximum eligible loan amount helps in financial planning, property selection, and ensures you don't overextend your finances.

4. Using the Calculator

Tips: Enter your comfortable monthly payment amount, current interest rate offered by the bank, and desired loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this specific to SBI Bank Indonesia?
A: While based on SBI's calculation method, this calculator can be used for general home loan eligibility estimation in Indonesia.

Q2: What factors affect my loan eligibility?
A: Besides the calculation factors, banks also consider your income, credit score, existing debts, and property value.

Q3: How accurate is this calculator?
A: This provides a good estimate, but actual eligibility may vary based on bank policies and your financial profile.

Q4: Should I borrow the maximum eligible amount?
A: Not necessarily. Consider your overall financial situation and leave room for unexpected expenses.

Q5: Does this include insurance and other charges?
A: No, this calculates principal only. Additional costs like insurance and processing fees would be extra.