SBI Cuts Home Loan Rates, Check How To Calculate Monthly EMI

 Home loan interest rates have been reduced by the State Bank of India (SBI) to 6.70 percent from 6.95 percent. The interest rate on new house loans up to Rs 30 lakh will now start at 6.70 percent, according to a press statement released by SBI on Saturday. Interest rates for SBI house loans will begin at 6.95 percent for loans of more than Rs 30 lakh and up to Rs 75 lakh, and will rise to 7.05 percent for liabilities of more than Rs 75 lakh. In addition, the country's largest commercial bank announced a 0.05 percent interest rate reduction for female home loan applicants. According to the bank, those who apply for a house loan through the YONO App will receive a 5-bps interest rate reduction. The revised rates will take effect on May 1, 2021.

According to the SBI home loan calculator, the monthly EMI on a Rs 10 lakh loan for a tenure of 10 years at 6.95 percent (previous SBI home loan interest rate) is Rs 11585. According to the SBI calculator, the monthly EMI on a Rs 10 lakh home loan obtained over a duration of 10 years will now be Rs 11457, based on the initial SBI home loan interest rate of 6.70 percent.

If a new SBI home loan borrower takes up a Rs 10 lakh loan for a ten-year period, the monthly EMI will be cut by Rs 128 per month once the initial SBI home loan rate is reduced from 6.95 percent to 6.70 percent. As a result, the new SBI house loan borrower can save Rs 15,360 over the course of ten years. (Rs 128*12*10).

Female house loan customers, on the other hand, will receive a 0.05 percent interest rate rebate from SBI, bringing the initial home loan rate to 6.65 percent. So, if a female consumer takes out a Rs 10 lakh house loan for ten years, her EMI will be Rs 11,431.

SBI Home Loan EMI Calculation

The following formula is used for an SBI home loan monthly EMI calculation. EMI = [P x R x (1+R)^N]/[(1+R)^N-1]. Here P is the principal loan amount, R is the rate of interest, N is the number of tenures in months.   If we take the above figure in consideration then EMI= [10,00,000 x 0.55/100 x (1+0.55/100) ^ 120 / [(1+0.55/100) ^ 120 - 1) = Rs 11,407 approx.

When the three influencing elements are taken into account, the EMI payments are directly proportional to the loan amount and interest rates, and inversely proportional to the loan tenure. The loan amount or interest rate increases in proportion to the EMI instalments, and vice versa.

Conclusion

There's no need to be discouraged if your personal loan application is turned down. To boost your chances of loan approval, simply work on improving your credit report and following the methods outlined above. Once you've completed this checklist, you're ready to submit your personal loan application.To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Best Home Loan In India if you have any more. 

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