Calculate 10 Lakh Home Loan EMI SBI In 2023 – A Comprehensive Guide

Home Loan EMI Calculator: Buying a home is a major financial decision that requires careful planning and budgeting. With home loan interest rates on an upward trajectory, calculating your equated monthly installment (EMI) accurately is crucial before taking the plunge.

This comprehensive guide will walk you through how to calculate the EMI for a 10 lakh home loan from SBI, India’s largest public sector bank. We’ll look at the latest SBI home loan interest rates, eligibility criteria, and documents required, and use the home loan EMI calculator to arrive at the monthly repayment figure. Read on to make an informed decision on your home purchase.

Overview of SBI Home Loans

SBI offers home loans under the SBI MaxGain Home Loan scheme to salaried and self-employed borrowers. Some key features include:

  • Loan amount– Can avail a loan up to 90% of property value, maximum Rs.5 crores
  • Interest rates– 7.95% onwards, linked to CIBIL score and loan amount
  • Tenure– Up to 30 years

SBI home loans come with low processing fees, nil foreclosure, and prepayment charges. You also get tax benefits under Section 24 and Section 80C.

SBI Home Loan Eligibility Criteria

To avail of an SBI home loan of 10 lakhs, you must meet the following eligibility criteria:

  • Age between 21 to 65 years at loan maturity
  • Salaried individuals – Minimum 3 years of service. Self-employed persons – 5 years in the same line of business
  • Annual income of at least Rs.6 lakhs in metro cities, Rs.3 lakhs in other areas
  • CIBIL score greater than 750

If you are an existing SBI customer, you can get further interest concessions on home loans. NRIs and HUFs can also apply for SBI home loans.

Documents Required for SBI Home Loan

When applying for a home loan from SBI, keep these documents ready:

For salaried applicants:

  • Last 3 months’ salary slips
  • Bank statements for the last 6 months
  • Form 16 and ITRs for the last 2 years
  • Identity & address proof
  • Employment proof

For self-employed persons:

  • Income tax returns (ITR) for the last 3 years
  • Balance sheet for last 3 years
  • Business address proof
  • Business continuity proof
  • Identity and address proof

Other documents:

  • Property documents
  • Sales agreement or allotment letter
  • Credit score report from CIBIL

SBI will also conduct technical and legal validation of the property after you submit your home loan application.

How to Calculate SBI Home Loan EMI

The home loan EMI is calculated using the following factors:

  • Loan amount– Principal amount you want to borrow
  • Interest rate– The annual interest rate charged on loan
  • Tenure– Loan repayment period in months

The standard formula to calculate home loan EMI is:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]


  • P is the loan amount
  • R is the monthly interest rate
  • N is the loan tenure in months

Let’s understand this with an example:

Ramesh wants to buy a flat worth Rs.30 lakhs. He is eligible for a home loan of Rs.10 lakhs @7.95% annual interest for 20 years from SBI.

  • Loan amount (P) = Rs.10 lakhs
  • Interest rate (R) = 7.95% per annum (=0.6625% per month)
  • Tenure (N) = 20 years = 240 months

Plugging this data into the formula:

EMI = [10000000 x 0.006625 x (1+0.006625)^240] / [(1+0.006625)^240-1]

EMI = Rs. 9,331

Therefore, Ramesh will pay an EMI of Rs.9,331 for his SBI home loan of Rs.10 lakhs @7.95% annual interest with a 20-year tenure.

SBI Home Loan EMI Calculator

Instead of doing complex calculations manually, you can easily determine your home loan EMI using SBI’s online EMI calculator:

  • Visit SBI’s website and go to the home loans section
  • Scroll down and click on ‘EMI Calculator
  • Enter the required details – loan amount, interest rate, and tenure
  • The EMI value will be displayed

You can tweak the values and do multiple iterations to arrive at an optimal EMI suited to your budget.

The EMI calculator also shows the total interest payable and total repayment amount over the loan tenure.

Factors That Affect Your Home Loan EMI

The following factors impact your monthly home loan EMI amount:

  1. Interest rate – With RBI increasing repo rates, banks are hiking interest rates on loans. Higher interest rate attracts larger EMI.
  2. Loan tenure – Longer the tenure, the lower the EMI amount. The trade-off is you end up paying more interest overall.
  3. Loan amount – Naturally, a higher loan amount will result in a greater EMI figure.
  4. Own contribution – More downpayment lowers loan amount and EMI. Co-applicant’s income also helps secure a larger loan.
  5. Credit score – A higher credit score lowers home loan interest rates offered by banks. This directly lowers your EMI amount.

How to Get Lowest EMI on Your SBI Home Loan

Here are 5 tips to reduce your home loan EMI:

  1. Opt for longer tenure – Extending loan tenure up to 30 years lowers your EMI outflow significantly.
  2. Make a higher downpayment – A minimum of 25-30% of property value will reduce the loan amount and interest burden.
  3. Add co-applicant – Co-applicant’s income raises your loan eligibility and reduces EMI.
  4. Maintain an excellent CIBIL score – A score above 750 ensures the lowest interest rate on the home loan.
  5. Apply under special campaigns – Availing loans under seasonal offers lowers the overall interest rate, reducing EMI.

Benefits of Paying Higher EMI

Although a higher EMI pinches your monthly budget, consider these benefits:

  1. Reduces interest outgo – Paying additional principal brings down the interest component on the remaining loan.
  2. Shorter tenure – Higher EMI pays the loan sooner, freeing you from debt.
  3. Saves lakhs – For a Rs.50 lakh loan, increasing EMI by Rs.2,500 can reduce tenure by 5 years and total interest by Rs.3.5 lakhs approximately.
  4. Quick ownership – Faster loan closure gives you full ownership rights sooner on the property.
  5. Avoids ballooning debt – Getting debt-free ASAP avoids accruing large interest costs over extended tenure.

Prepayment and Foreclosure of SBI Home Loans

SBI allows prepaying the home loan to reduce your interest burden. You can pay lump sums or increase your EMI amount without any prepayment charges. This directly cuts down the loan tenure and total interest payable.

You can also foreclose the home loan anytime by paying off the entire principal amount. SBI charges no penalty for prepayment or foreclosure.

Make additional payments towards the principal amount to maximize savings from prepayments. Avoid making needless part-payments so the benefit is not frittered away.

Tax Benefits on SBI Home Loans

Taking a home loan comes with tax benefits under two sections:

Section 24 – Claim tax deduction up to Rs.2 lakhs on interest paid on housing loan. This directly lowers your taxable income.

Section 80C – Claim deduction up to Rs.1.5 lakhs on principal repaid during the financial year. Reduces taxable amount.

Therefore, a home loan from SBI helps save lakhs in taxes over the tenure of the loan.


We have provided a step-by-step guide on how to calculate your 10 lakh home loan EMI from SBI using the loan details and online EMI calculator. Ensure you account for various factors that impact your EMI amount and tax benefits available to make an informed home-buying decision.

SBI offers attractive interest rates starting at 7.95% on home loans currently. Check your eligibility, submit the required documents, and apply for competitive home loan rates to fulfill your dream of owning a house.

Leave a Comment