SBI Home Loan: Want to take Rs 30 lakh loan from State Bank of India for 20 years? Know your EMI and interest

SBI Home Loan EMI Calculation: Most of us have a dream of owning a home in our lifetime. Since real estate is costly and you have to shell out huge amount to purchase a home, you take a home loan from a bank. But before extending your application to the lender for the loan, it is necessary that you calculate your loan amount, EMI you will pay on the loan, and total interest on your principal. You can set your EMI as per your repayment capacity.

Talking about the country's largest bank, State Bank of India (SBI), its starting interest rate for home loan is 9.15 per cent.

If you want to take a loan of Rs 30 lakh for 20 years, then know from the calculation that what will be your monthly EMI and how much interest you will have to pay in the loan tenure.

SBI Home Loan EMI Calculation

According to the information available on SBI website, it is offering home loan at an initial rate of 9.15 per cent to the customer with a Cibil score of 750 or more.

Now, let us assume that you have to take a loan of Rs 30 lakh for 20 years, what will be your EMI at an interest rate of 9.15 per cent.

If the interest rate on the home loan remains the same on average throughout the tenure, how much interest will you pay?

Loan amount: Rs 30 lakh
Loan Tenure: 20 years
Interest rate: 9.15% per annum
EMI: Rs 27,282
Interest in total tenure: Rs 35,47,648
Total Payment: Rs 65,47,648

(Note: This calculation has been done from SBI Home Loan Calculator.)

Thus, we see that your EMI will be Rs 27,282. Your total payment till the completion of the loan tenure will be Rs 65,47,648.

In this, you will pay more than half the amount of Rs 35,47,648 as interest.

However, know that you can bargain home loan interest rates based on your CIBIL score and loan repayment capacity.

Interest rates on floating rates may be lower than the current rates.

The effect of increase or decrease in repo rate

Home loans from scheduled banks like SBI are directly linked to the repo rate of the Reserve Bank.

The repo rate is the interest rate at which commercial banks take loans from RBI.

From October 2019, the RBI has made it mandatory for banks to link personal loans, auto loans, home loans, etc., given on floating rates.

Most banks are offering home loans at Repo Linked Lending Rate (RLLR). It is also called External Benchmark Rate (EBR).