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POSTED BY ON January 17, 2013 6:51 pm COMMENTS (5)
I have availed a home loan of 40 lacs from SBI @10.15% floating rate for 15 years (180 months). Initially I had given a moratorium period of 7 months but now I would like to pay in full. The concern is that SBI has calculated an EMI of 46,785. But by my calculations even if I remove the 7 month moratorium period and I calculate the EMI for remaining 173 months, it comes out to be 44,106 – still lower than the SBI number. I dont know how the number 46,785 has been calculated. Can somebody help me with this.
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Dear Gaurav, in the light of the info shared by dear FFC, it seems your actual loan is for 187 months & not 180 months. Although as per my prev. interactions with other people for SBI loans, this is highly unlikely that your term has been increased to 187 months.
SBI ‘ll adjust all your loan repayment within the 180 months period.
thanks
Ashal
During the moratorium period you were charged interest (compounding every month at a rate of 10.15/12 %). EMI is calculated for 173 months on that ourstanding after the moratorium period. Does the terms of your loan say anything about interest accumulation during the moratorium period?
If I am not wrong they seem to have calculated with 180 months and 8 months moratorium
which gives 46784.24
173 ,months with no moratorium gives the emi you have calculated 44105.62
please confront them with this.
The formula can be taken from this good excel file
http://www.pnbindia.in/upload/en/Loan%20Calculator.xls
Your advice ‘Please confront them with this” is in my opinion not necessary. No bank gives loan free of interest. They have to pay interest to depositors from day 1 of the deposit. Similarly, they have to charge interest from day 1 of the loan. Moratorium period is only to give relief to the borrowers so that their payments need not start immediately. Some may not be in a position to start repayment of the loans immediately after taking loan. In such a case to avoid penalties for non payment of EMI, moratorium period is given. Moratorium period also carries interest and that period’s interest stand loaded in the EMI.
Dear Gaurav, had you opted any add on insurance with your home loan? Please check for the same in your loan documents first.
Thanks
Ashal