Hey there, One of the major factors to consider while taking a loan is the interest rate applicable. Several banks have different schemes for loan interest rates and the repayment period. In my answer, I will share how to avoid part period interest in SBI Home loan. Take a look at my answer to know more.
What is the meaning of Part Period interest in SBI home loan ?To explain simply, part period interest in SBI home loan is the interest charged by the bank between the time period from the day of disbursement of loan to the date when EMI starts.
How to avoid part period interest in SBI Home loan ?The following tips might help you avoid part period interest in Home loan by SBI.
SBI does not follow a monthly balance policy like other banks.
SBI practices daily balance policy.
Pay the principal amount quickly to reduce your loan in general.
Close your loan by paying the EMI amount on the same day of the month as when you availed the loan.
Take a look a Home loan prepayment and consider paying your bills before the tenure is over.
I hope my answer about how to avoid part period interest in SBI Home loan helps you out.
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What is part period interest? What is part period interest in SBI home loan?
I have been using the SBI home loan facility for years and avoiding the part period interest. All you need to do is just pay the principal amount at a specific time. There are some more I want you to know. So let me take you through what part period inter in SBI means.
Opt for a NoBroker home loan to save you from spending more money on interest.At a specified duration of time, interest is paid or received. Part period interest refers to a scenario in which one pays or receives interest at a time other than the specified time. It should be remembered that SBI has a daily balance policy, as compared to all other banks' monthly balance policies. This is the real meaning of part period inter in SBI home loan.
You need to confirm that the principal is repaid as soon as possible. The amount of interest to be repaid is proportional to the principal amount. You can pay more than the normal EMI if your finances allow. It will help you lower your outstanding principal and also help you save money on interest. And if you want to know more about how to avoid part period interest in SBI, go through Shrishti’s answer. All your queries will be answered.
The following mathematical formula can be used to determine your house loan EMI:
EMI Amount = [P x R x (1+R)^N] / [(1+R)^N-1]
In this formula, P, R and N are the variables.
When you modify any of the three variables, the EMI value will vary.
The letter P stands for 'Principal Amount.' The main amount is the amount of the loan that you received from the bank and on which interest will be computed. The bank's interest rate is denoted by the letter R. N is the number of years the loan has been taken out for. Because EMIs are paid on a monthly basis, the length is computed in months.
So, if you acquire a home loan of Rs.60 lakh for a term of 20 years at a 12-percent average interest rate, your estimated EMI will be:
N = 20 years or 240 months, P = Rs.60 lakh, R = 12/100/12 or 0.01 (change to months)
EMI = [6000000 x 0.01 x (1+0.01)^240] / [(1+0.01)^240-1]
The EMI is Rs.60,000
I hope you understood what part period inter in SBI means.
Let buyer plans from NoBroker help you choose the best and cheapest property. Read More: What is the home loan interest rate in SBI? How to close SBI max gain home loan? How to transfer home loan to SBI? How to reduce home loan interest rate in SBI?I have recently availed a home loan from SBI. So, let me explain what part period in SBI is, and how to avoid part period interest. Making more principal payments on your mortgage in the middle of the month may lower the sum still owed, which may have an effect on how interest is calculated for the days left in that month. The portion of the month that the initial loan balance was unpaid before the payment was completed may be calculated by the lender and added to your account as "part period interest," which you would be charged.
How to avoid part period interest in SBI?Assure prompt repayment of the principal, and close your home loan. The amount of interest that must be repaid decreases in direct proportion to the decrease in principal (due to faster repayment).
If possible, pay more than the standard EMI. Your outstanding principal balance and your interest expense will both be decreased by the surplus amount.
I hope this will help you understand how to avoid part period interest.
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What are the SBI Home Loan Prepayment Rules? How to Close SBI Home Loan Online? Which Bank is Best for Plot Loan?I can help you with measures you can take to avoid the SBI home loan part period interest rate. There are multiple things that you can do here. This includes paying your principal amount as quickly as possible, taking a home loan repayment and many more. I wanted to save up on part period interest when I took a home loan last year. I figured out some ways that really helped me avoid the part period interest rate. So, let me share those in detail with you.
Here are some ways through which you can avoid the SBI home loan’s part period interest.
Make your EMI payments on the same date of every month on which your loan was disbursed.
Make the payment for the principal loan amount as quickly as you can to reduce your overall loan.
You can opt for a home loan prepayment and make your payments before the tenure gets over.
So, these are three ways through which you can avoid the part period interest on your home loan. I hope this information helps you.
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How to Avoid Part Period Interest in SBI Home Loan?
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December 13, 2021
2021-12-13T10:12:41+00:00 2023-12-13T12:16:00+00:00Comment
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