Savings with SBI Balance Transfer of Home Loan Calculator

In the financial voyage of homeownership, the right mortgage 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 CreditDharma 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

  1. Input Current Loan Details: Include your existing loan amount, interest rate, and remaining tenure.
  2. New Loan Terms with SBI: Enter SBI’s interest rate and the proposed loan tenure.
  3. Analyzing Outputs: The calculator will show the new EMI, total interest outgo, and potential savings.

The formula used in CreditDharma SBI Home Loan Balance Transfer Calculator

The Calculator takes input as shown below to calculate the Balance Transfer benefits.

Outstanding PrincipalP
Yearly ROI ROI
TenureT
New TenureNT
NewROINROI

Outputs that we will get from the calculator will be

Total SavingsS
Existing EMIE
New EMINE
Monthly EMI SavingsES ( E – NE ‘)
NewROINROI

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 –

  1. P = 70,00,000
  2. ROI = 10.5%
  3. T = 15 Years
  4. NT = 15
  5. 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

A home loan balance transfer calculator will swiftly provide you with precise calculations, specifically in this scenario.

Existing EMI: Rs.82,905

New EMI: Rs.78,091

Monthly Savings: Rs.4,814

Total Savings: Rs.8,66,554

Benefits of Using the SBI Calculator

  1. User-Friendly Design: Just input the required details for efficient results.
  2. Accessibility: It’s free and doesn’t require registration.
  3. Unlimited Usage: Evaluate different scenarios without restrictions.
  4. Timeliness: An indispensable resource in the rapidly expanding home loan sector.

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.

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

LenderHome 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 Finance8.50% – 10.75%8.50% – 10.55%8.50% – 10.35%
State Bank of India8.50% – 10.05%8.50% – 10.05%8.50% – 10.15%
HDFC Bank Limited8.40% onwards8.40% onwards8.40% onwards

FAQs

What is the time required for Balance Transfer of a home loan ?

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.


Impact of a home loan balance transfer on your credit score

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.


When is it advisable to opt for a balance transfer of your home loan?

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.


Is there a tax advantage with a balance transfer loan?

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.

Join Our Newsletter

Open chat
Hello 👋
Can we help you?