|
0
|
50L
|
100L
|
150L
|
200L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
0
|
5
|
10
|
15
|
20
|
25
|
30

Total EMI

49,919

Total Interest

69,80,559

Total Payments

1,19,80,559

Break-up of Loan Amount
Created with Highcharts 4.2.2 50,00,000 69,80,559 Total Interest Principal Loan Amount
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About HDFC Home Loan

HDFC is one of the oldest and well-known finance providers in India. It has a customer base of more than 4.4 million customers across the nation. It is one of the pioneers in the Home Loan industry. It has an experience of over 35 years in providing Home Loans in India. There are various Home Loan schemes and offers at HDFC, which aims at providing maximum benefits to the borrowers. There are no prepayment charges on the floating interest rates on a Home Loan at HDFC. The interest rates at HDFC are very affordable and competitive too. HDFC believes in going an extra mile by providing the necessary technical and legal advice to the Home Loan applicants throughout the loan procedure. HDFC is known for its customer care service and hassle-free loan procedure.

HDFC Home Loan EMI

The borrower needs to pay an Equated Monthly Instalment (EMI) against the borrowed Home Loan amount. This instalment is towards the repayment of the loan. A borrower needs to pay a fixed amount of money on a fixed day every month throughout the loan tenure.

The maximum Home Loan tenure at HDFC is 30 years. The lowest EMI offered by HDFC at the rate of interest of 8.85%, for tenure of 30 years is 794 per lakh. The rate of interest charged by HDFC to the women borrowers starts at 8.80%. Special privilege and discount are given to women borrowers at HDFC to encourage them to buy their own house.

HDFC Housing Loan EMI Calculator

EMI for different loan amounts and tenures @ 8.80% interest rate

Loan Amount

Loan Tenure

 

15 years

20 years

30 years

25,00,000

25, 060

22,173

19,757

50,00,000

50,120

44,345

39,514

75,00,000

75,180

66,518

59,271

1,00,00,000

1,00,240

88,690

79,027

The above table helps you to understand that EMI differs with the difference in the amount borrowed from HDFC as per the loan tenure. The lower the loan tenure the higher will be your EMI amount. For a lower EMI amount, an applicant must apply for a longer tenure.

An EMI is made up of interest component a well as principal component. Even if the EMI amount remains same throughout the loan tenure the ratio of interest component and principal component keeps on changing with payment of principal component each month.

Home Loan EMI for 1 Lakh loan amount at lowest 8.80% interest rate for different tenures:

  5 years 10 years 15 years 30 years

EMI when loan amount is 1 lakh @ 8.80% interest rate

2,066

1,256

1,002

790

Total amount payable to bank (principal + interest)

1,23,969

1,50,715

1,80,433

2,84,499

Interest payable over the loan tenure

23,969

50,715

80,433

1,84,499

The above table explains that the longer the loan tenure the lower your monthly EMIs will be. But the overall outgo will be more in case of longer tenure loans. For example, if you apply for a loan of 1 Lakh for 30-years tenure, the monthly EMI will be RS. 790 but the overall interest that you will be paying total will 1,84,499. It is very important to study this calculation prior to applying for the Home Loan.

Quick Highlights of HDFC Home Loan

Purpose of Loan: HDFC provides Home Loan for various purposes such as purchasing a new or resale house/ flat/ apartment, construction of a house, renovation/extension of an existing house, and so on.

Key Features

  • The Home Loan at HDFC is available for both salaried employees and self-employed individuals.
  • The maximum Loan to Value (LTV) ratio for Home Loan at HDFC is 90%
  • Special discounted rates of interest are offered to women borrowers for HDFC Home Loans.
  • The minimum age for applying for the Home Loan is 18 years
  • The maximum age should not be more than 65 years at the time of loan completion
  • The maximum Home Loan tenure at HDFC is 30 years
  • Interest rate starts at 8.80% (as on 04.05.2019)
  • The Lowest EMI is 790 per Lakh

Processing Fees: The processing fees for HDFC Home Loans are as follows:

  • For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or 3,000 (whichever is higher) + applicable taxes.
  • For self-employed non-professionals: Up to 1.50% of the loan amount or 4,500 (whichever is higher) + applicable taxes.

Special Schemes: HDFC offers the following customised Home Loan schemes catering to the various needs of homebuyers and homeowners:

  • Home Loans
  • Plot Loans
  • Rural Housing Loans
  • HDFC Reach Loans
  • Pradhan Mantri Awas Yojana (PMAY)
  • Home Improvement Loans
  • Home Extension Loans
  • Top Up Loans
  • Balance Transfer
  • Commercial Property Loans
  • Commercial Plot Loans
  • Loans for NRI/ PIO
  • TruFixed Home Loan

HDFC Home Loan EMI Calculation Formula

P*r* (1+r)^n/([(1+r)^n]-1)

Here is an illustration of how HDFC Home Loan EMI is calculated:

In the above formula,

P = Loan amount

r = Rate of interest per month. The current rate is 8.80%, which is linked to HDFC PLR

n = tenure in a month. For HDFC, this can be 360 months

Factors Affecting HDFC Home Loan EMI

  • Loan amount: The Home Loan amount plays a very important role in determining the EMI. Higher the Home Loan amount, the higher will be the EMI and vice versa.
  • Interest rate: The Home Loan interest rates also affect the EMI. The higher the rate of interest charged by the bank, the higher the EMI amount will be. The HDFC provides the Home Loan at starting interest rate of 8.80%. The higher rate of interest may result in increasing the overall cost of the loan. Hence, it is very important to do a complete comparison and market research before selecting a lender to borrow the Home Loan.
  • Loan tenure: The Home Loan tenure is the period within which a borrower is required to repay the Home Loan in full. The loan tenure can be decided based on the age of the applicant while applying for the Home Loan. The maximum Home Loan tenure at HDFC is 30 years.
  • Occupation of the borrower: Salaried borrowers with a stable income can enjoy the benefit of a better rate of interest than self-employed individuals.
  • Type of loan opted for:Different rates of interest are applied by HDFC on the basis of the type of Home Loan an applicant is applying for. The different types of Home Loan schemes offered by HDFC include: Home Loans, Plot Loans, Rural Housing Loans, HDFC Reach Loans, Pradhan Mantri Awas Yojana (PMAY), Home Improvement Loans, Home Extension Loans, Top Up Loans, Balance Transfer, Commercial Property Loans, Commercial Plot Loans, Loans for NRI/ PIO, TruFixed Home Loan.
  • Existing bank customers:Based on the relationship with the existing customers, HDFC can also offer better interest rates.

Tips to Decide the Right Amount of EMI

  • Fix the amount for your Home Loan: It is very important to know the exact amount you would like to borrow before applying for the loan. This will give you a clear understanding of the funds available with you and will help you to plan your monthly budget accordingly. It is always recommended to minimise the Home Loan amount as much as possible as it is a long-term loan. You can also opt for short tenure Home Loans to reduce the overall outgo of the interest.
  • Know all your current obligations: A complete evaluation of monthly expenses and income is necessary to derive the Home Loan amount. All the obligations such as any current EMI should be taken into consideration while applying for the loan. This will give you a clear idea of the EMI that you will be comfortable to pay for your loan.
  • Calculate the HDFC Home Loan eligibility before applying: The eligibility of a Home Loan applicant is determined based on their repayment capacity and the monthly income. HDFC provides Home Loan LTV of up to 90%. You have to arrange for the remaining amount yourself. If the margin payment is higher than the available funds, the applicant can apply for higher LTV loans. However, the higher LTV loans come at higher interest rates. Thereby, increasing your monthly EMI amount considerably.
  • FOIR: Based on FOIR (Fixed Obligation to Income Ratio) HDFC will estimate the maximum EMI amount an applicant can afford to pay, taking into consideration their monthly expenses. All the other obligations such as EMI on past or current loans are taken into account while determining the FOIR. The proportion of fixed obligation to a monthly income of an applicant gives FOIR. The minimum FOIR of 0.65 is must to be eligible for the Home Loan at HDFC.

How to Use MyMoneyMantra EMI Calculator to Calculate HDFC Home Loan EMI?

The Home Loan EMI calculator at MyMoneyMantra is very simple to use and easy as well. All you need to do is just follow the below-mentioned easy steps to get the EMI amount on your HDFC Home Loan.  

  • Visit MyMoneyMantra's 'EMI Calculator' page under the 'Financial Tools' tab on the home page.
  • Now you will be directed to a page where you need to enter the loan parameters like the loan amount required, interest rate, and tenure.
  • Click the 'Calculate' button
  • You will instantly get the monthly payable EMI amount with a complete amortisation schedule.

You can change the parameters and try different permutations and combinations to arrive at the best EMI.  

Benefits of Using MyMoneyMantra's EMI Calculator

MyMoneyMantra EMI Calculator is very easy to use and you get the exact EMI amount on the basis of the details provided instantly. One of the main advantages of knowing the EMI amount that an applicant needs to pay against the Home Loan is that this estimation helps one to allocate the funds as per one's monthly budget. The applicant can also try various permutations and combinations to arrive at the perfect EMI amount that they can afford taking into consideration current expenses and obligations.

  • Anytime access

    The MyMoneyMantra EMI calculator can be used anytime anywhere for any number of times. It also helps to save the time of the applicant as they need not visit the bank to do all the complex calculations and know about the EMI amount.

  • Accurate results

    It is possible to get accurate results instantly with the help of the online EMI Calculator at MyMoneyMantra. The calculator gives you error-free calculations without many efforts.

  • Saves you from time-consuming and complex calculations

    MyMoneyMantra helps you to do all the complex calculations easily with its online EMI Calculator. You don't have to do the same process and calculations again and again. This can be done easily with the calculator. Thus it helps to save a lot of time. 

  • Aids the financial planning process

    When you know the exact amount you need to pay every month against the Home Loan, it is easier for you to channelise the funds and plan your monthly budget accordingly. The EMI Calculator also gives you the flexibility to try various combinations to arrive at best suitable EMI.

  • You can use this calculator for every loan

    The calculator can be used to calculate EMI for all kinds of loans. The majority of the loan parameters are the same for most of the loans but sometimes it is better to use specific EMI Calculator for better results.

FAQs on HDFC Home Loan EMI Calculator

How does HDFC arrive at the eligible Home Loan amount?

The eligible Home Loan amount is determined on the basis of the income and the repayment capacity of the applicant. The important parameters such as age, nature of employment, qualifications, dependents, income of the spouse, savings history, and so on are also considered while determining the eligible loan amount.

Will the HDFC Home Loan EMI remain constant or fluctuate? Is there any effect of increase or decrease in the interest rate?

  • Mostly the EMI for the Home Loan does not change for the Home Loan at HDFC. However, the customer may apply for the change in interest rate with HDFC and may have to pay nominal charges for the same.
  • If you apply for the floating interest rate on the Home Loan, the EMI will remain constant but the loan tenure shall increase. If there is an increase in the interest rate the EMI on the Home Loan shall also increase.

In the case of prepayment will the EMI amount change?

HDFC allows prepayment at NIL charges in case of floating rate Home Loans. When you do a prepayment of your loan the principal amount gets reduced and you can even opt to keep the EMI same and reduce the loan tenure. This will help you to repay the Home Loan faster. You can also choose to reduce the EMI amount and keep the tenure of the loan same.

What is an EMI?

EMI is the 'Equated Monthly Instalment' which the borrowers need to pay every month towards the repayment of the Home Loan. This amount has to be paid by borrower till the amount is fully paid or until the loan tenure. The EMI is made up of principal component and interest component.

When does the borrower start repaying the principal amount?

As soon as the borrower avails the disbursement of the Home Loan amount, the repayment of the loan starts in the following month. The borrower pays interest on the portion of the loan amount disbursed. This interest paid by a borrower called pre-EMI interest. Pre-EMI interest has to be paid every month from the date of disbursement to the date of starting your monthly EMI.

For construction properties, HDFC offers you a unique 'Trenching' facility wherein the borrower is given liberty to choose the instalments they wish to pay until the time they get the ready possession of the property. If you pay an amount, which is over or above the interest rate, it will straight away go towards payment of your principal amount thus, helping you to repay the loan faster. This scheme is best in some case wherein; the Home Loan disbursal will take more time.

What does 'own contribution' mean?

'Own contribution' is the total cost of the property less the loan amount received. This amount has to be arranged by the borrower.

What does 'market value' of the property mean?

Market value refers to the estimated cost of the property to be purchased based on the current market conditions.

What are the tax benefits on the Home Loan?

Under the Income Tax Act, 1961 the borrower of the Home Loan is eligible for several benefits on the principal amount and interest too. These benefits may change as per the tax amendments by the government. Currently, you can get a tax rebate of 1.5 Lakhs on principal amount and 2 Lakhs on interest component annually.

How can a borrower repay the HDFC Home Loan?

The borrower can repay the HDFC Home Loan through the ECS (Electronic Clearing System) or can directly deduct the monthly EMI from the bank account or can also give post-dated cheques.

Why is it beneficial to calculate HDFC Home Loan EMI before taking the loan?

It is always recommended to calculate Home Loan EMI prior to taking a Home Loan. Some of the benefits of doing this are mentioned below:

  • If the EMI amount is more than your monthly budget, you can apply for the lower Home Loan amount that suits your monthly budget.
  • You can know the exact affordable Home Loan amount
  • You can plan your funds and monthly expenses
  • You can opt for making the prepayment of your Home Loan amount based on the EMI amount.

HDFC Home Loan - Latest News

2019-01-02: HDFC Bank raises the Home Loan rates by 10 basis points 

Being one of the leading mortgage lenders, the HDFC Bank has increased its housing loan rates by 10 points making Home Loans costlier for the new borrowers. The latest interest rates range from 8.90% to 9.15% on different slabs of loans.

2018-08-31: HDFC Bank cuts home improvement loan rates in Kerala

HDFC Bank has reduced home improvement loan rates for its customers in Kerala by 20-30 basis points and it has also waived the processing fees for such loans which have been adversely affected by the flood. This is available only for those customers whose property is located in Kerala.

2018-11-20: HDFC Ltd disburses over 1100 Crore under PMAY Credit Linked Subsidy Scheme

HDFC Bank Ltd has disbursed an amount of 1100 crore under the PMAY, a Credit Linked Subsidy Scheme to over 51000 customers. The bank has provided a loan to borrowers who belong to EWS (Economically Weaker Section), LIG (Low Income Group) and Middle Income Group (MIG) categories.

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