SBI Home Loan: SBI gives a massive shock to borrowers! Check your new EMI
State Bank of India has hiked its home loan interest rates by 0.25 percent. This sudden move will significantly increase the monthly EMI burden for borrowers.
EMI amounts will increase
Borrowers will definitely see a sharp jump in their monthly EMI amounts now. The interest rate has moved from 8 percent to 8.25 percent. People who took loans for a 20-year tenure (240 months) will face an extra financial burden. This hike will surely hit the monthly budget of middle-class families.
A quick calculation shows the exact difference for each loan amount. For example, a person with a Rs 30 lakh home loan will now pay an EMI of Rs 25,562 instead of the old Rs 25,093. This means they must pay an extra Rs 469 every month.
Similarly, the EMI for a Rs 50 lakh loan jumps from Rs 41,822 to Rs 42,603. This adds Rs 781 to the monthly expense. Borrowers with larger loan amounts will naturally feel a much heavier monthly burden.
How to reduce the interest burden?
Borrowers with a Rs 80 lakh loan will see their monthly EMI rise from Rs 66,915 to Rs 68,165, which adds an extra Rs 1,250. People who took a Rs 1 crore loan must now pay Rs 85,207 per month. This is Rs 1,563 more than the old amount of Rs 83,644.
Banks usually give customers two options when interest rates go up. First, you can increase your monthly EMI amount and keep your 20-year loan tenure exactly the same. Second, you can continue paying the old EMI amount, but the bank will extend your loan tenure by one extra year.
Save your money from extra interest
Financial experts always suggest increasing the EMI amount instead of extending the loan tenure. You can easily save lakhs of rupees in interest payments if you choose this smart move. A borrower can save around Rs 1.85 lakh in interest on a Rs 30 lakh loan by simply hiking the EMI.
Similarly, you can save Rs 3.08 lakh on a Rs 50 lakh loan and Rs 4.93 lakh on a Rs 80 lakh loan. Borrowers with a Rs 1 crore loan can prevent a massive Rs 6.17 lakh from going to waste as interest if they increase their EMI.
These calculations are approximate and might change based on your specific loan terms. You should immediately contact your respective SBI branch to know the exact changes to your home loan.
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