Table of Content
Even if the surplus amount is kept only for a few days during the month, it helps reduce the interest component of the EMI for that month. Since the interest is calculated on the Book Balance instead of outstanding principal, any excess amount (i.e., EMI – Principal – Interest) is added to the Available Balance. SBI MaxGain is a home loan that is sanctioned as an OD with a limit that is equal to the approved loan amount. Your home acts as the underlying security for the OD account. This product has the same interest rate as the other home loans from SBI upto Rs. 1 crore .
She has been writing and editing personal finance articles for EMICalculator.net since inception. Her interests include retirement planning, behavioural finance, yoga and classic literature. 1) If you opted for lesser loan tenure, then more of your future EMI goes towards Principal. Cannot be used like SB or current account for outgoing transactions and bill payments.
Impact of interest rate HIKE on your loan EMI & repayment schedule
Lastly, you will have to input the rate of interest that the SBI Bank is offering you for the home loan. You will have to enter the principal amount that you want as a home loan from The State Bank of India.
So that was how you can use the Home Loan EMI calculator India to calculate the EMI on your home loan. You can easily use this loan EMI calculator excel sheet download to calculate your home loan EMIs and create a loan amortization schedule. To make it easy for you, here is a free excel based Home Loan EMI Calculator that also shows you the loan amortization schedule. You can use the home loan account to do funds transfer (NEFT, RTGS etc.) and bill payments using cheque book and net banking facility.
SBI Maxgain Home Loan EMI Calculator
Note that you will be realizing this rate even if you park your funds temporarily unlike FD where you will pay a penalty for premature withdrawal. On top of that the savings with MaxGain are tax free. Principal and Interest components are calculated as per the original amortization table.
The tool is also helpful when you want to compare different tenures and amounts to find what is the most suitable combination for you. You can also identify if it is the right time to take this loan and if you are availing of the right scheme from the bank. You will then have to enter the tenure of the loan that you want to borrow from the bank. The tenure of a home loan can range up to a period of 30 years. Poornima H N is a Certified Financial Planner living in Bengaluru, Karnataka. Being an avid reader, she has done her post-graduation in English Literature from KSOU, Mysuru.
Pre-payment vs Parking Surplus Funds
Surplus amount deposited in the OD account and accrued interest savings do not alter the principal portion of the EMI. You can see the bulk of the EMI payments during the initial years goes towards interest payment. If you have a home loan, just ask your lender for the home loan amortization table. It will indicate exactly your outstanding home loan amount at any point in time. Or you can easily get a quick idea of the same using online loan amortization table calculators. All surplus money parked in the home loan account goes towards Available Balance.
I.e., the interest clock starts ticking as soon as the amount is withdrawn instead of waiting until the payment due date. The interest rate on overdraft account is typically lower than credit card. Most home loan borrowers face the dilemma of whether to use their monthly savings to prepay their loan or set it aside for emergencies. In most cases, the extra money just sits in their savings accounts earning below par interest. A home saver loan lets you have the cake and eat it too. The money thus kept in the home loan account reduces the total interest outgo on your home loan and helps you close your loan faster.
How does monthly payment work?
However, surplus fund deposited before full disbursal or for under construction property cannot be withdrawn until complete disbursal. Your interest outgo will reduce because of this deposit and interest saved will get added to available balance, but you cannot withdraw till you get possession. You can opt to reduce either your loan tenure or loan EMI.
You can also adjust the tenures and amounts based on your financial stand. You can approach the bank to close your home loan when the Book Balance reaches zero. Interest is calculated on the Book Balance on a daily basis and is debited at the end of the month. The question comes that how is the value of Drawing power & limit is calculated. On 4 April 2012 Rs 12,343 insurance amount was deducted. On 28 March 2012 my cheque of 30 lacs was disbursed.
Available Balance is the limit for such transactions. Principal component is calculated as per the original amortization table. The Drawing Power is reduced by the principal amount of the EMI each month. But the initial EMIs contribute more towards the interest component of the loan.
Upon final disbursal, your Limit and Drawing Power will equal the sanctioned loan amount. The rest of the amount Rs would be deducted in next 4years (i.e Rs per annum) as an insurance amount.Since i have not taken the policy i think it would not be deducted. I am confused that what will happen as the sanctioned amount was Rs 30,61,715 and i got the loan disbursed for 30 lacs. A home loan is probably the biggest loan you will ever take in your life. At least for the vast majority of people who aren’t into business requiring business loans.
But if you wish to manage your home loans wisely without compromising other goals, do read this detailed post on managing home loans. Every month, the Interest payment for the month goes down while the principal repayment goes up. The SBI Maxgain Home Loan Calculator Excel is an online tool that will enable you to calculate the EMI from the Maxgain home loan facility from anywhere and at any given time. Also, the SBI Maxgain Home Loan EMI Calculator is an automated tool, and it works systematically to give you the most exact EMI amounts with the data that you provide. The State Bank of India offers its customers the SBI Maxgain Home Loan.
It is something similar to the schedule shown in the table earlier. If you make partial prepayment on your home loan, that money goes to reduce the outstanding principal and is not available to you anymore. However, any surplus funds parked in MaxGain home loan account can be withdrawn anytime. Principal portion of the EMI is applied on the date of EMI payment and goes to reduce the Drawing Power and the Limit. The principal portion of the EMI is calculated as per the original amortization schedule.
Any amount that you deposit to Maxgain will not be treated as “pre-payment” under Section 80C. Hence, that amount does not qualify for Section 80C rebate. Experts advice that you should only park amount over and above the tax deductible interest portion. Interest saved is not tax deductible under Section 24.
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