how much interest rate and monthly EMI for Rs 10 lakh Home Loan from SBI?

EMI & Interest Details for Rs 10 lakh Home Loan from SBI

Today's post will be useful for everyone.Today we are going to tell you about how much the monthly EMI and interest will be if you take a home loan of 10 lakh rupees from SBI Bank. So read this article carefully.

EMI Calculator

Home Loan The EMI calculator is said to be the basic calculator that helps you calculate the EMI, monthly interest, and monthly depreciation balance based on the principal amount, loan tenure, and interest rate.

With this EMI Calculator, we will be able to know the interest rate, loan tenure, etc. for how much home loan we are getting in the bank.

That is, for example, suppose you are now getting a home loan from the bank. This will let you know how much interest you have to pay per month, the interest you have to pay back during the loan period, and the total amount you have paid during the loan period.

To calculate the EMI (Equated Monthly Installment) and interest details for a ₹10 lakh home loan from the State Bank of India (SBI), we need the following factors:

• Loan amount: ₹10,00,000
• Interest rate: SBI's interest rates for home loans can vary based on the applicant's credit profile and loan terms. For simplicity, let's assume the rate is around 8.5% per annum (but this rate may differ, so you should check the latest rates from SBI).
• Loan tenure: Typically, home loans have tenures ranging from 10 to 30 years. Let's assume a common tenure of 20 years (240 months).
• Processing fees: SBI charges a processing fee of around 0.35% of the loan amount, subject to a minimum and maximum limit (typically ₹10,000 to ₹15,000). We'll leave this out of the EMI calculation but it is an additional cost.

Formula to Calculate EMI:

The formula for calculating EMI is:

$$EMI = \frac{P \times r \times (1+r)^n}{(1+r)^n - 1}$$

Where:

• P = Loan principal (₹10,00,000)
• r = Monthly interest rate (annual rate ÷ 12)
• n = Loan tenure in months

Step-by-Step Calculation:

1. Loan principal (P): ₹10,00,000
2. Annual Interest Rate: 8.5% (0.085)
   • Monthly Interest Rate (r) = 8.5% ÷ 12 = 0.708% = 0.007083
3. Loan Tenure (n): 20 years = 240 months

Now, applying the formula:

$$EMI = \frac{10,00,000 \times 0.007083 \times (1 + 0.007083)^{240}}{(1 + 0.007083)^{240} - 1}$$

Using a calculator, the EMI comes out to approximately:

EMI = ₹8,414

Total Interest and Total Repayment:

To calculate the total interest paid over the loan tenure:

• Total EMI paid over 240 months = ₹8,414 × 240 = ₹20,18,640
• Total Interest Paid = Total EMI paid - Principal Loan Amount = ₹20,18,640 - ₹10,00,000 = ₹10,18,640

Summary for a ₹10 Lakh Loan at 8.5% Interest for 20 Years:

• EMI: ₹8,414
• Total Interest Paid: ₹10,18,640
• Total Repayment: ₹20,18,640

Other Considerations:

1. Floating vs Fixed Interest: SBI offers both floating and fixed-rate loans, but floating rates are more common for home loans. In a floating rate loan, the interest rate can change over time, affecting the EMI.
2. Prepayment: If you make any lump sum prepayments, the total interest paid will reduce, and your EMI may also decrease, depending on how you restructure the loan.

It's always a good idea to use the bank’s home loan calculator or talk to an SBI representative for more accurate and personalized details based on the current rate and your eligibility.