Set up in 2008, IDFC Bank Ltd specialised in wholesale financing to MSMEs, asset management, and JVs in Foreign Exchange. Subsequently, the bank changed its business model to retail funding and changed the name of the company to IDFC Bank. With effect from December 18, 2018, IDFC Bank merged with Capital First to create a new entity, IDFC First Bank.
The Bank focuses on financing India's 50 million MSME units and its emerging middle-class segment's requirements. The bank specialises in providing IDFC First Home Loans at competitive rates of interest. IDFC Bank is a frontrunner in the technology front. This fact is evident from the various types of Home Loan calculators available on the website for the benefit of its customers. The Home Loan EMI Calculator is one among a wide array of calculating tools.
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IDFC First Bank offers various Home Loan products to cater to every requirement of its clients. Right from providing finance to purchase new houses/flats to financing for construction purposes, IDFC First Bank has exclusive products to offer. Facilities to transfer your existing Home Loan balances and availing top up benefits are also available.
|Product Name||Rate of Interest||Tenure||Processing Fees||Ideal for|
|Regular Home Loan||Repo rate + 3%||Up to 30 years||Up to 3% of the loan amount||Salaried and self-employed individuals|
|Home Loan under PMAY||Repo rate + 3%||Up to 30 years||As per rules||As per eligibility criteria for PMAY|
Check Best Home Loan Interest Rates starting @8.50% from different banks and NBFCs.
A Home Loan is an extended liability that can run on for 20 years and more. The amounts involved in a Home Loan are substantial, as well. It is usually a one-time affair for most of its customers. Hence, the repayment of the Home Loan assumes significant importance. The ideal mode of repayment is the EMI. This method of repayment ensures the gradual repayment of the principal amount, along with servicing the entire interest portion.
The Home Loan EMI is a constant figure for a specific loan amount, repayment tenure, and rate of interest. The EMI comprises of two components:
Interest repayment component: Any payment into the Home Loan account initially goes towards the interest repayment. In the early stages of the Home Loan, the interest payment component is high because of the substantial principal amount.
Principal repayment component: The balance left in the EMI amount after servicing the interest and other charges goes towards the repayment of the principal amount. In the initial months, it could even be as low as 0.1% to 0.5% of the entire loan liability. As you keep on repaying the EMI, the proportion improves gradually.
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Calculating the Home Loan EMI manually can be a challenge because of the following factors:
The Home Loan EMI Calculator thus comes as a well-defined tool that helps in calculating the EMI quickly. Before discussing the tool, let us look into the formula that goes behind calculating the EMI.
EMI = [PR(1+R)^N] divided by [(1+R)^N-1]
The Home Loan EMI Calculator makes the job simple by computing the EMI amount in an instant.
IDFC First Bank offers the facility of EMI Calculator along with a host of other Home Loan-related calculating tools. The Home Loan EMI Calculator is easy to use. The customer has to enter the following information accurately:
|Loan Amount||Loan Tenure||Rate of Interest||EMI|
|10 Lakhs||360||8.75% - 8.85%||Rs. 7,939|
Apart from the EMI amount, this calculator provides you with the annual repayment schedule in the numeric and graphical format. This table will help you understand the concept better.
Points to note:
You can also Calculate Rs. 80 Lakhs Home Loan EMI and compare interest rates with Top Banks.
The Home Loan EMI calculation depends on the following three variable factors:
|EMI @ Rate of Interest - 8.85%|
|Loan Amount/Tenure||10 Lakhs||25 Lakhs||40 Lakhs|
|10 years||Rs. 12,587||Rs. 31,466||Rs. 50,346|
|20 years||Rs. 8,901||Rs. 22,253||Rs. 35,604|
|30 years||Rs. 7,939||Rs. 19,846||Rs. 31,754|
|EMI @ Rate of Interest - 9.25%|
|Loan Amount/Tenure||10 Lakhs||25 Lakhs||40 Lakhs|
|10 years||Rs. 12,803||Rs. 32,008||Rs. 51,213|
|20 years||Rs. 9,159||Rs. 22,897||Rs. 36,635|
|30 years||Rs. 8,227||Rs. 20,567||Rs. 32,907|
Points to note:
You can also Calculate Rs. 1 Crore Home Loan EMI and compare interest rates with Top Banks
The IDFC First Bank EMI Calculator is a comprehensive financial tool. Using it is easy. However, alternatives are available on the internet. One such option is the EMI Calculator available on MyMoneyMantra.com. This EMI Calculator is similar to the one displayed on the IDFC First Bank website, but it does not give the amortisation schedule.
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IDFC First Bank has a unique Home Loan EMI Calculator that accounts for pre-EMI interest while determining the EMI. The procedure for using this calculator is the same. However, borrowers should provide additional information.
|Loan Amount||Loan Tenure (including the pre-EMI period)||Rate of Interest||Interest-only period (pre-EMI period)||Pre-EMI period||EMI after the holiday period|
Compare this chart with the EMI calculation chart. You will see that there are two EMIs on this chart. One is the EMI for the pre-EMI period. The other EMI is the EMI for the regular EMI period. The amount is more because the tenure is less. Instead of 360, it is 324.
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Home Loans for construction purposes come with a holiday period for repayment. The loan disbursement is also in tranches. The regular EMI will commence after the final payment. IDFC First Bank allows a maximum holiday period of 36 months. The interest charged to the Home Loan account before the commencement of the regular EMI is pre-EMI interest.
Many banks capitalise the pre-EMI interest and add it to the Home Loan. IDFC First Bank calculates the pre-EMI interest and insists that the borrowers service this amount every month until the start of the regular EMI. It is beneficial to borrowers in many ways.
You can also check Home Loan EMI through Loan Prepayment Calculator
Besides the Home Loan EMI and the Pre-EMI Interest Calculators, IDFC First Bank has many other Home Loan calculators on its webpage.
You can also check Loan EMI through Loan Against Property EMI Calculator
The IDFC First Bank Home Loan EMI Calculator helps borrowers to understand the breakup of interest and principal repayment over the full tenure of the loan. It is in addition to estimating the regular EMI.
IDFC First Bank has a separate pre-EMI interest calculator that can determine the pre-EMI interest repayment and the regular EMI, as well.
Any factor that affects the rate of interest, Home Loan tenure or the loan amount affects the Home Loan EMI. IDFC First Bank offers floating rates of interest on Home Loans. The market rate variation can result in a change in the Home Loan interest rate, resulting in a change in the EMI/loan tenure. A part-payment made by the borrower can also affect the residual tenure/EMI. The credit of PMAY upfront subsidy affects the Home Loan principal amount, thereby affecting the EMI, as well.
IDFC Bank finances projects under construction. Such Home Loans do not have a single disbursement schedule. The amount is disbursed in several tranches. The repayment does not start immediately. Such loans come with a holiday period that could extend up to 36 months. The interest charged to the Home Loan account before the commencement of the EMI is the pre-EMI interest.
IDFC First Bank has a pre-EMI interest calculator that determines the amount to be paid during the pre-EMI period. The calculator also estimates the regular EMI payable by the borrower. The borrower should adhere to this schedule, as it is beneficial.
The bank can permit capitalisation of interest during the holiday period. However, it is beneficial for the borrower to repay the pre-EMI interest monthly, as it reduces the financial burden.
The floating rate scenario entails that the Home Loan interest rate changes with a variation in the benchmark rates. It automatically affects the EMI on the Home Loan. A rise in the interest rate increases the EMI and vice versa. This increase in the EMI can affect the budget of the borrower. Hence, IDFC First Bank prefers to maintain the EMI as constant and elongate the loan tenure.
Usually, when customers prepay the Home Loan, they do so intending to reduce their liability. They do not request the bank for restructuring their loan account. However, if the bank receives a request for revising their EMI for the residual tenure, the bank accedes to the same.
PMAY subsidy is an upfront interest subsidy. On receiving the grant from the Government, the bank credits it to the loan account, thereby reducing the principal component of the Home Loan. Any decrease in the loan amount directly affects the EMI. It reduces accordingly.
IDFC First Bank Home Loan EMI Calculator does not accept any amount below 10 Lakhs. Therefore, if your loan is 10 Lakhs or more, you can use this calculator to determine your EMI.