1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount made by a borrower to a lender at a specified date each calendar month.

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 100)
• \( n \) — Loan term in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for both principal repayment and interest payment components of the EMI.

3. About SBI Home Loans

Details: State Bank of India offers home loans with interest rates starting from 7.50% p.a. for eligible borrowers, with loan terms up to 30 years.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 7.50), and loan term in years (1-30). The calculator will show monthly EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the current SBI home loan interest rate?
A: As of 2023, SBI home loan rates start at 7.50% p.a. for eligible borrowers, but actual rates may vary based on credit profile.

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

Q3: What is the maximum home loan tenure at SBI?
A: SBI typically offers home loans up to 30 years, subject to age criteria (loan should typically mature before borrower turns 70).

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

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