In the financial voyage of homeownership, the right home loan plan is as critical as the home itself. The SBI Balance Transfer of Home Loan Calculator is a lighthouse for those navigating the choppy waters of high-interest rates. With its competitive offerings, SBI promises not just a loan transfer, but a shift towards greater savings and financial peace.
How Credit Dharma SBI Home Loan Balance Transfer Calculator works ?
The SBI Home Loan Balance Transfer Calculator is a user-friendly digital tool designed to provide a clear picture of potential savings. By inputting details such as current loan balance, existing interest rate, and SBI’s proposed rate, users can assess the financial benefits of a balance transfer.
How to Use the SBI Balance Transfer Calculator
- Input Current Loan Details: Include your existing loan amount, interest rate, and remaining tenure.
- New Loan Terms with SBI: Enter SBI’s interest rate and the proposed loan tenure.
- Analyzing Outputs: The calculator will show the new EMI, total interest outgo, and potential savings.
Formula used in Credit Dharma SBI Home Loan Balance Transfer Calculator
The Calculator takes input as shown below to calculate the Balance Transfer benefits.
| Outstanding Principal | P |
| Yearly ROI | ROI |
| Tenure | T |
| New Tenure | NT |
| NewROI | NROI |
Outputs that we will get from the calculator will be
| Total Savings | S |
| Existing EMI | E |
| New EMI | NE |
| Monthly EMI Savings | ES ( E – NE ‘) |
| NewROI | NROI |
For example, assume that a person took a home loan of which Rs. 75 Lakhs Outstanding Principal is yet to be paid for a tenure of 15 years at an agreed-upon interest rate of 10.5%. and now wants to transfer the home loan to a SBI with new interest rate of 9.45% and without changing the tenure of 15 years So, according to the formula –
- P = 70,00,000
- ROI = 10.5%
- T = 15 Years
- NT = 15
- NROI = 9.45
Now using the Balance Transfer Formula:
R = ROI/100
E = [P x R x (1+R) ^T] / [((1+R) ^T)-1]
Current Amount = A = E*T*12
NR = NROI/100
NE = [P x R x (1+R) ^NT] / [((1+R) ^NT)-1]
New Amount = NA = NE*NT*12
ES = A – NA
Calculating EMIs
Existing Loan EMI: Using the formula given, you first calculate the monthly payment (EMI) for your current loan, which comes out to Rs. 82,905.
New Loan EMI: Then, you calculate the EMI for the new loan with SBI at the lower interest rate, which is Rs. 78,091.
Comparing Savings
Monthly Savings: By transferring your loan, you save Rs. 4,814 every month because your EMI is lower with the new loan.
Total Savings: Over the entire tenure of 15 years, your total savings add up to Rs. 8,66,554.
Tired of banks increasing your home loan rates without telling you?
Eligibility for SBI Balance Transfer of Home Loan
To be eligible for the SBI Balance Transfer of Home Loan, the bank has laid out clear parameters: You must be a Resident Indian, aged between 18 to 70 years, with a stable income, which ensures that you can comfortably meet your EMI obligations. Moreover, you should have been regular with your interest and/or installment payments on your existing loan as per the original sanction terms.
Benefits of Transferring Your Home Loan to SBI
Transferring your home loan to SBI isn’t just about getting a lower interest rate; it’s about optimizing your loan repayment in a way that’s aligned with your financial goals. First and foremost, you benefit from the daily reducing balance method of calculating interest, which can significantly lower the total interest paid over the life of the loan. Furthermore, the SBI Balance Transfer of Home Loan offers the unique advantage of an overdraft facility, giving you the flexibility to access funds quickly and conveniently when you need them.
Visit the official SBI website for more information.
Benefits of Using the SBI Calculator
- User-Friendly Design: Just input the required details for efficient results.
- Accessibility: It’s free and doesn’t require registration.
- Unlimited Usage: Evaluate different scenarios without restrictions.
- Timeliness: An indispensable resource in the rapidly expanding home loan sector.
Conclusion
The SBI Balance Transfer of Home Loan Calculator is a doorway to more than just a home loan with a lower interest rate; it’s a strategic move towards smarter financial management. With SBI, you get the trust of a national bank and a promise of transparency. If you’re considering a home loan transfer, delving into the details of SBI’s offer might just be the smart financial decision that leads to considerable savings in the long run.
Also check home loans from other banks
| Lender | Home Loan Interest Rates (Above 75 lakhs) | Home Loan Interest Rates (Above 30 lakhs to 75 lakhs) | Home Loan Interest Rates (Up to 30 lakhs) |
|---|---|---|---|
| LIC Housing Finance | 8.50% – 10.75% | 8.50% – 10.55% | 8.50% – 10.35% |
| State Bank of India | 8.50% – 10.05% | 8.50% – 10.05% | 8.50% – 10.15% |
| HDFC Bank Limited | 8.40% onwards | 8.40% onwards | 8.40% onwards |
Frequently Asked Questions [FAQs]
Transferring your home loan balance typically takes between 5 to 20 days. This duration can vary based on the processing speed of your current bank and the time needed for documentation and approval processes at the new bank.
Initiating a balance transfer for your home loan does not directly impact your credit score. In fact, it may have positive effects, such as reducing the number of active loan accounts and decreasing your overall credit utilisation.
Consider transferring your home loan balance if you find yourself subject to an interest rate that exceeds the current market average. Some Banks are known for offering attractive rates for these kinds of balance transfers.
Absolutely. Under the Income Tax Act of 1961, you qualify for tax deductions on both the principal and interest amounts of your balance transfer loan. Since these tax advantages can change from year to year, it’s advisable to consult with banks for up-to-date information on the tax benefits available for your loan.
HDFC Home Loan
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