Am I paying more EMI than actual?

POSTED BY Mithun Patil ON October 9, 2012 5:20 pm COMMENTS (5)

I have taken SBI home loan on Nov 2011. Loan amount 28.5 lacs and tenure 20 years with the interest rate 10.5 % (floating). They told me that I have to pay 28505 Rs EMI for this loan, but when I checked the max gain excel sheet calculator then I found that max gain calculator says that I have to pay Rs 28,453.83 as EMI amount for 28.5 Lacs loan with ROI 10.5 and tenure 20 years.
Am I paying more EMI that actual? I approached bank but the executive told me that you have to pay 28505 Rs as EMI. When I argued him and asked him about max gain calculator, he said that he is not aware of that and he stopped entertaining my questions.
1. Am I paying more EMI that actual?
2. What is the EMI for 28.5 lacs for 20 yrs with 10.5 % ROI assuming that there is full payment done?

5 replies on this article “Am I paying more EMI than actual?”

  1. PRADIP says:

    Hi mithun,
    I have taken home loan from sbi max gain scheme i had also same doubt but after asking them they said we are charging surplus amount because of insurance part which is added to emi and then they round off to nearest to value.

  2. Credexpert says:

    If the EMI is payable monthly, which it probably is, then , it should be monthly rests or monthly reducing balances. The EMI of Rs 28,453.83, or Rs 28454, is on the basis of monthly rests. If you take annual rests, the EMI would be Rs 28,855. Either the calculation is wrong or there is a “hidden” cost or charge which has been built into the EMI.
    You must continue to seek clarifications from the bank and they are obliged to provide that information to you. And unless there is a valid explanation which the Bank can provide, seems like you are paying more.

  3. There are few things which are coming right now to my mind

    It might happen that the processing charges are not taken care by the Max gain calculator ! , thats why its showing a lower EMI . Note that the EMI calculators which are on net and other kind of excel calculators , they just take tenure and interest rate into consideration . thats all ..

    Another thing which can happen is descripency in the reducing balance tenure ! .. One of them might be working on Monhthly reducing method and other on the daily reducing balance ! .. check on that .

    from where did you get that maxgain calculator ?

    1. Mithun Patil says:

      Hi Manish,

      I have already paid the processing fees by cheque. I found the max gain calculator excel sheet at

      1. As you found the calculator on that forum , It would be good idea to follow up on the same site , so that the calculator creator and other people out there might comment on that .

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.