1. What is the EMI Calculation Formula?

The EMI (Equated Monthly Installment) calculation formula determines the fixed payment amount a borrower makes each month to repay a home loan. The formula accounts for the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan over its term, including both principal and interest components.

3. About SBI Home Loans

Details: State Bank of India offers home loans starting at 8.40% p.a. interest rate (as of current data). The actual rate may vary based on credit profile, loan amount, and other factors.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (8.40% is SBI's starting rate), and loan tenure in years. The calculator will show EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the current SBI home loan interest rate?
A: Rates start at 8.40% p.a. but vary based on loan amount, tenure, and applicant's profile.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures have higher EMIs but lower total interest.

Q3: What is the maximum tenure for SBI home loans?
A: Up to 30 years, subject to age limits (typically loan must close by age 70-75).

Q4: Are there prepayment charges?
A: SBI typically doesn't charge for prepayment of floating rate loans, but fixed rate loans may have charges.

Q5: What factors affect home loan eligibility?
A: Income, credit score, existing obligations, property value, and applicant's age are key factors.