HSBC Bank Home Loan EMI Calculator
Use HSBC Bank home loan EMI calculator for calculating your HSBC Bank housing loan EMI. The EMI calculator takes into account some basic details of loan for calculation, such as the required loan amount, repayment tenure, and the rate of interest.
HSBC Bank Home Loan EMI Calculator
HSBC Bank listed as the world's largest organization in the banking sector operates in 65 countries across the globe and the clientele base is over 40 million. The Bank offers services for both Commercial and Retail Sectors.
Various commercial and retail lending products are offered and they offer services to the MSME Sector also. Home loans are one of the most popular retail lending products of HSBC Bank.
The Bank offers two types of home loans. Regular Home Loan and Smart Home Loan. Smart Loans can be opted by customers who intend to make ongoing pre-payments to reduce the cost of the loan.
EMI for HSBC Bank Home Loan
The lowest EMI as on date is 696/- per lakh for HSBC Bank Home Loan @ 7.45% p.a.
The rate of interest for HSBC Bank Home Loans ranges between 7.45%
| Loan amount | 5 years | 10 years | 20 years | 25 years |
|---|---|---|---|---|
| Rs. 30,00,000 | Rs. 60,043 | Rs. 35,532 | Rs. 24,076 | Rs. 22,072 |
| Rs. 50,00,000 | Rs. 1,00,071 | Rs. 59,220 | Rs. 40,127 | Rs. 36,787 |
| Rs. 1,00,00,000 | Rs. 2,00,142 | Rs. 1,18,441 | Rs. 80,254 | Rs. 73,574 |
| Rs. 2,00,00,000 | Rs. 4,00,284 | Rs. 2,36,882 | Rs. 1,60,508 | Rs. 1,47,148 |
Additional Info: Also Check LRD Loan
What is an EMI calculator?
EMI calculator is a financial device that enables calculation of EMI in a very simple and easy way.
The rate of interest is of two types. A flat rate of interest and interest on reducing balance. To calculate EMI for a flat rate of interest the principal amount and the interest for the entire tenure have to summed up and divided by the total number of months (as per loan tenure). For calculating the EMI on reducing balance the following formula has to be applied.
P*r* (1+r) ^n/([(1+r) ^n]-1)
P stands for Principal
R stands for rate of interest
N stands for the loan tenure
Calculating the EMI applying the above formula manually can be very confusing, complex and time-consuming. While trying various combinations and permutations to arrive at the desired EMI you may miss out on some aspect and the end result will turn out inaccurate and you will be making the wrong choice of home loan.
To avoid the above confusion you can use an Home Loan EMI calculator which will give a 100% accurate result on providing the loan amount, loan tenure and rate of interest that you have ultimately decided after doing research on the offers available in the market.
Additional Info: Best Home Loan Interest Rates @7.15%
Factors that affect the EMI
Each variable that constitutes the calculation of EMI has a different impact on the EMI.
Loan Amount: By deciding the loan amount after assessing the contribution you can make you can arrive at the EMI. If the margin you can provide is lower, then the rate of interest will be high and with the increased loan quantum and the rate of interest, the EMI will obviously be high. By providing a higher margin you will be saving on the interest cost since the rate of interest will be low if your contribution is high.
Fluctuation in interest: The rate of interest is bound to change whether it is a floating rate of interest, a fixed rate of interest or a semi-fixed rate of interest. In a floating rate, the change may be periodical throughout the tenure. With a fixed-rate and semi-fixed rate, it will change after a certain period. With the change in the interest the EMI will also change.
Loan tenure: EMI can be either high or low depending on the loan tenure. If you choose a longer tenure, then the EMI will be high and if the tenure is low then the EMI will be low.
Pre-payment: With pre-payments, the outstanding principal balance will reduce and resetting the EMI will also reduce depending on the outstanding balance.
Step-up and step-down EMI: Step-up EMI which increases as the period progresses is ideal for borrowers who are in the productive age group since they expect a rise in income as per their seniority. Step-down EMI which decreases as the tenure progresses is ideal for customers who are in the last leg of their career.
Additional Info: Also check Pan Number for Banks
Tips to decide the right EMI
You will have to consider a few things for deciding the right EMI:
Plan your EMI: EMI is a commitment that you will have to regularly keep up. A home loan EMI is a long-term commitment and it can take up the major portion of your monthly income. Planning your EMI before applying for the loan in order to make the right choice is very essential.
LTV Ratio: Home loans will essentially be a percentage of the market value of the property you intend to acquire. It can range from 70% to 90%. The higher the LTV, the higher will be the rate of interest. Bringing in a higher amount of margin will enable you to get the home loan at a lower rate of interest which will reduce the cost of the loan.
FOIR: Fixed Obligation to Income Ratio is the ratio between the current financial obligation along with the proposed EMI to your monthly income. The FOIR should be kept below 50% generally to be eligible for a loan. So while arriving at the EMI this aspect should be considered.
Additional Info: Also check ICICI Home Loan EMI Calculator
Change in EMI with a Change in Interest Rates
Rate of interest will undergo a change whether it is a floating rate, a fixed rate or a semi-fixed rate. The only difference is that in a floating rate of interest the rate keeps changing every time the RBI changes the bank rate. With a fixed-rate of interest and semi-fixed rate, the rate of interest will change after a certain period when it is reset as per the prevailing rate.
Every time the rate of interest changes, the EMI will change. The change could be positive or negative.
Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.
Change in EMI with pre-payment
Pre-payments made along with the regular EMI will bring down the outstanding principal on the loan. The EMI will reduce if an option is given for resetting the EMI. Otherwise, the tenure will come down. If you are able to service the present EMI, then opting for a tenure change will be ideal to reduce the cost of the loan.
Additional Info: Also check SBI Home Loan EMI Calculator
FAQs
Both Resident Indians and NRIs can apply for the Home Loan. Salaried individuals, self-employed individuals/professionals, and businessmen can apply for the home loan.
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