SBI Flexipay Home loan gives you the opportunity to avail greater home loan along with the reduced monthly repayment in the initial years. This loan scheme is suitable for those who has a stable job with growing salary. Through the SBI Flexipay home loan, you can afford a bigger house which otherwise may not possible with the regular home loan.
If you find the features and benefits of SBI Flexipay home loan suitable, you must know the financial impact of this loan on your budget. You should know the EMI calculation of initial years and later years. In this post, I will tell you the EMI calculation of SBI Flexipay Home Loan. You will also know the maximum eligible amount of home loan under the Flexipay option.
Maximum Eligible Home Loan Amount Under SBI Flexipay Option
The SBI Flexipay Home loan makes you eligible for the enhanced loan amount. Under this scheme, your loan eligibility increases by 20%. If in a regular home loan you are getting the loan of Rs 80 lakh, you can get the loan up to Rs 96 lakh with the Flexipay option. Hence, the calculation of eligibility amount of the Flexipay is not a difficult task.
The regular home loan eligibility is fixed on the basis of property value, your regular income, monthly liability and property background. There would not be any relaxation on these criteria.
The maximum loan amount would be subject to your total monthly loan repayment. The aggregate EMI of any personal loan, car loan, home loan or any other loan should not exceed more than the 50% of your monthly salary. However, there is some relaxation if your monthly salary is more than Rs 1 lac.
SBI FlexiPay Home Loan EMI Calculation
The SBI Flexipay Home loan gives you the facility to pay less monthly amount during initial 3-5 years. You can choose the duration of reduced pay within 3 to 5 years. During the chosen period you can opt to pay the interest only.
As you must know that a home loan EMI has two components. The Interest and principal. The payment of the principal amount reduces the total loan outstanding. While interest is the extra money you pay to the bank for giving you the loan.
Initially, in any home loan, the interest component is higher. Gradually the interest part declines and principal part rises.
The SBI Flexipay Home loan gives you the facility to postpone the payment of principal payment. Because of this postponement, your total EMI comes down. However, you should not expect any big drop as I have told that initially the principal component is less.
Since you do not pay the principal amount for a certain period, your home loan outstanding does not decline. It remains intact till you start paying the principal part.
Therefore, after the ‘interest only’ period, you can consider the EMI of the Flexipay home loan as a fresh regular home loan. The EMI of a home loan after the ‘interest only’ (moratorium) period would be similar to a regular home loan taken for the remaining period.
So the EMI of Flexipay Home loan has two values. The first one is the interest only. It is a lesser amount. The EMI of the later period would consist the interest plus principal. It would be a higher amount. The amount can go further higher because of reduced payment period. However, you should go for longer repayment period for the Flexipay home loan.
Let us understand the EMI calculation of Flexipay home loan through a comparative example. Please, Note this calculation is done on the basis of publicly available information and some assumptions. The actual amount may differ slightly. If you find any anomaly, please intimate me.
Ram and Shyam want to buy a home in the Noida. Both of them earns 16 lacs per annum. They have 10 lakh in their saving. They have seen the 2 BHK and 3 BHK flats. The price of 2 BHK flat is 60 lacs. The price of 3 BHK flat is 75 lacs. Both of them wanted a bigger house. They are ready to maximum possible home loan. But Ram chooses the regular SBI home loan while Shyam goes with the SBI Flexi Pay Home loan let us see the scenario.
| SBI Regular Home Loan (Ram) | SBI Flexipay (Shyam) | |
| Margin Money | 10 lacs | 10 lacs |
| Loan requirement | 65 lacs | 65 lacs |
| Loan to value ratio | 80% | 80% |
| Eligible loan amount | 60 lacs | 60 lacs |
| Enhanced loan amount | nil | 20% of the eligible amount |
| Maximum loan amount | 60 lacs | 72 lacs |
| Interest rate | 9.55% | 9.55% |
If both the Ram and Shyam choose the 3BHK flat, the are required to arrange the home loan of 65 lakh. With the Regular Home loan, it is not possible. The loan to value ratio would be 80%. So the maximum loan amount would be Rs 60 lacs.
On the other hand, the SBI Flexipay would give 20% more of the loan to value ratio. Therefore, we can get 20% more of the 60 lacs. It would be 72 lakh.
You can see SBI Flexipay can give up to the loan of Rs 72 lakh. The Shyam can use the remaining amount for the interiors as well.
Suppose, Shyam use the Flexipay option to its maximum and take a loan of Rs 72 lakhs. Whereas the Ram takes the regular home loan of Rs 60 lacs. Let us compare the EMI of Ram and Shyam.
| If Shyam takes maximum home loan through SBI Flexipay | ||
| Loan Amount | 60 lacs | 72 lacs |
| Monthly outgo For First 5 years @9.55% | 56123 | 57300 |
| Outstanding balance after 5 years | 53.59 lacs | 72 lacs |
| Monthly outgo For Next 15 years @9.55% | 56123 | 75401 |
| Monthly outgo For Next 15 years @11% | 60913 | 81,835 |
SBI Flexipay Home Loan Calculator
This SBI Flexipay Home loan calculator tells you the monthly interest amount, you are required to pay during the moratorium period. It also tells you the EMI, once the moratorium period ends. Using this calculator you can easily know the present and future liabilities. Using this calculator you can decide the loan amount. Because it is not necessary to avail the maximum loan. Rather you should also consider your future monthly liability.