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# State Bank of Patiala (Now SBI) Home Loan EMI Calculator

Last Updated 09th Sep 2017

## State Bank of Patiala (Now SBI) Home Loan - Lowest EMI is Rs. 826 per lakh

• Get monthly EMI as low as Rs. 826 per lakh with State Bank of Patiala now offering home loans with loan tenure upto 30 years.
• Lowest home loan interest rate currently offered by State Bank of Patiala is 9.30%, for which the EMI per Rs. 1 lakh loan amount comes to Rs. 1,032 for a 15 year loan and Rs. 919 for a 20 year loan.
• Home loan EMI in State Bank of Patiala depends upon loan amount, repayment tenure and interest rate.
• Check the EMI for other tenures using the State Bank of Patiala home loan EMI calculator on this page.
Home Loan EMI Calculator
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## Home Loan EMI Calculator State Bank of Patiala

### State Bank of Patiala (Now SBI) Home Loan EMI

• Home Loan EMI (or equated monthly instalment) is a fixed amount of money paid by you to State Bank of Patiala against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
• With State Bank of Patiala offering Home Loans with loan tenure upto 30 years, the loan EMI can be as low as Rs. 826 per lakh, to make it more affordable and convenient to meet your needs. Lowest Rate of interest offered by State Bank of Patiala on Home Loan is 9.30%.
House loan EMI Calculator at different tenures
Home Loan EMI for different loan amounts and tenures @ 9.30% interest rate
Loan Tenure
Loan Amount (Rs.) 15 years20 years30 years
2,500,000 25,80522,97820,658
5,000,000 51,61045,95541,315
7,500,000 77,41468,93361,973
10,000,000 103,21991,91182,630
• As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 15, 20 and 30 years. Your EMI is higher when you take loan for a shorter tenure of 15 years and it is lower when you apply for a higher tenure of 30 years.
• Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.
Use EMI Calculator to calculate your interest on home loan at different tenure
Home Loan EMI for Rs. 1 Lakh loan amount at lowest 9.30% interest rate offered by State Bank of Patiala for different tenures
15 years 20 years 25 years 30 years
State Bank of Patiala EMI for a loan amount Rs. 1 lakh at 9.30% 1,032 919 860 826
Total amount you pay back to the bank including principal and interest 185,760 220,560 258,000 297,360
Interest you have to pay over loan tenure 85,760 120,560 158,000 197,360

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a Rs. 1,00,000 loan for a period of 30 years, you pay the lowest EMI of Rs. 826. However, you pay an interest of Rs. 197,360 on a Rs. 1,00,000 loan.
In contrast, if you take a Rs. 1,00,000 loan from State Bank of Patiala at the lowest loan rate offered for a period of 15 years, you pay a higher home loan EMI of Rs. 1,032 and pay an interest of only Rs. 85,760 which is less than half of what you paid in a 30 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors Affecting State Bank of Patiala Home Loan EMI
• Loan amount – This is the amount borrowed by a borrower from State Bank of Patiala. If you apply for a higher loan amount, your monthly EMI will be high. State Bank of Patiala gives minimum home loan of Rs. 1,500,000 upto an amount of Rs. 50,000,000.
• Interest rate - Interest rates is the rate charged by State Bank of Patiala on your home loan. Higher interest rate increases your housing loan EMI which will increase the total cost of the loan. Lowest interest rate offered by State Bank of Patiala is 9.30%. Do complete market research and compare rates online before you apply for a home loan.
• Loan tenure – This is the period in which you can repay your home loan in State Bank of Patiala. Longer loan tenure means lower housing loan EMI. Loan tenure can be determined by your age at the time of loan sanctioning and your retirement age. Generally, State Bank of Patiala offers house loan for a maximum tenure of 30 years.

### State Bank of Patiala (Now SBI) Home Loan EMI calculator formula

P*r* (1+r)^n/([(1+r)^n]-1)

Here is an illustration of how State Bank of Patiala Home Loan EMI is calculated:

In above formula,

P = Loan amount. This can range from Rs. 1,500,000 to Rs. 50,000,000

r = Rate of interest per month. Current rate is 9.30%, which is linked to State Bank of Patiala (Now SBI) 1 Year MCLR, which is currently 8.30%. Last revised on 15th Mar 17

n = tenure in month. For State Bank of Patiala, this can be 360 months

### Tips to decide the right amount of EMI

• Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. The amount of loan you need to borrow is a function of the value of the property and available funds with you. Remember house loan is a long term loan, and hence it is advisable to minimise your loan amount to the extent possible. Limit your loan amount to the balance funds you need to fund the property after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
• Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
• Calculate your State Bank of Patiala home loan eligibility: Your home loan eligibility is a function of value of the property and assessment of your repayment capacity based on your monthly income. State Bank of Patiala provides a LTV upto 80% and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV 80%, State Bank of Patiala would expect its borrowers to provide margin money of 20%. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.

### Quick guide on State Bank of Patiala home loan

• Purpose of Loan: State Bank of Patiala home loan is taken to purchase, construct a home, renovate your existing home.
• Key Features
• Loan available for both salaried and self employed. Special rates for women borrowers.
• Borrowers within the age group of 21 and 60 years.
• Security: Mortgage of property you are planning to purchase, renovate or construct.
• Loan to Value Ratio upto 80%.
• Loan Tenure 5 to 30 years.
• Interest rates in the range of 9.30% to 9.30%.
• Lowest EMI of Rs. 826 per lakh
• Processing Fees: 0.35% of loan amount, with a minimum of Rs. 2,000 and a maximum of Rs. 10,000
• Special schemes: State Bank of Patiala offers customised home loan interest rates and schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Some of the special loan offers of State Bank of Patiala are:
• SBP Maxgain Home loan
• SBP Home Top Up Loan
• SBP Realty
• SBP Gram Niwas Scheme for Financing Rural Housing

### Will the State Bank of Patiala (Now SBI) home loan EMI remain constant or change in future? What happens in case of increase or decrease in interest rate?

• Typically, the home loan EMI remains unchanged unless the customer requests for a change and the same is approved by State Bank of Patiala subject to its eligibility conditions (note that nominal charges may apply for effecting a customer initiated change in EMI)
• In case the floating rate of interest on your home loan increases, State Bank of Patiala will typically keep the EMI constant but increase the loan tenure. So, you will pay the same EMI but for a longer duration. In case the interest rates increase to an extent that the revised loan tenure is more than the maximum permissible by State Bank of Patiala, the bank may increase your EMI amount.
• For partly disbursed loans availed under tranched EMI scheme, your loan EMI will increase with each disbursement.

### Will home loan EMI change in case of prepayment?

• State Bank of Patiala allows prepayment at nil charges or penalty in case of floating rate home loans.
• When you make a prepayment, the outstanding principal amount on your home loan reduces. In this case, you may choose to either keep the EMI the same and reduce the loan tenure (that is pay off the loan faster) or reduce the EMI and keep the loan tenure the same (that is pay lesser amount every month). It is beneficial to keep the EMI constant and reduce the loan tenure as you pay less interest to the bank in this option.

### Why should I calculate State Bank of Patiala loan EMI before taking a loan?

It is advised to calculate home loan EMI prior to taking a home loan. There are several benefits of calculating your State Bank of Patiala housing loan EMI as discussed below -

• In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
• If you already know the EMI you have to pay each month, then you can plan your spends accordingly
• Based on the EMI amount, you can opt for making prepayment of your home loan in future when you have surplus amount

### Compare Home Loan EMI of All Banks

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