Home loans are one of the most popular financial products in India. They make people’s dreams become reality. Recently, after the financial crisis, the real estate industry has picked up. The demand in case of real estate has increased drastically, as it is a tool for thousands of people to make their dreams into reality.
HDFC, being a premier institute, offers the loan facility to its customers. A prospective buyer should plan properly before taking out a loan; he should be sure how much he can repay the bank and in what tenure. The EMI amount is also very important in its calculation. HDFC home loan calculator immensely helps the customer to calculate EMI
HDFC Home Loan – Key Features
- The lender provides loans to both salaried and non-salaried people. Women borrowers get a special discount. The rate of interest on HDFC loans is between 6.70% to 7.40%
- The tenure of the loan ranges from 5 to 30 years.
- The age group of borrowers should be between 24 to 60 years
- For security purposes, the bank keeps a mortgage as a security on the property a buyer wants to buy or renovate.
- Loan to value ratio is 90%.
- The lowest HDFC EMI in home loans is INR 645 per lac. You can calculate your EMI with the help of the EMI Calculator.
HDFC Bank EMI Formula
The HDFC Bank EMI calculator uses a specific formula to calculate monthly payments.
It uses the formula [P x R x (1+R) ^ N] / [(1+R)^N-1], where
‘P’ is the principal amount
‘R’ is the monthly interest rate
‘N’ is the number of instalments.
This formula is used to calculate accurate EMI calculations. It considers the principal, the interest rate, and the tenure of the loan, allowing for effective financial planning.
Example of HDFC Bank EMI Calculation
Let’s consider a case where you want to borrow INR 4,00,000 for a personal loan from HDFC Bank. The HDFC Home Loan Interest Rate is 12% per annum, and the loan tenure is 5 years.
By applying this formula [P x R x (1+R) ^ N] / [(1+R) ^ N-1]
where P=INR 400,000
R= 12%
N=60 (5 years x 12 months), the calculated EMI would amount to approximately INR 88,98. The example above shows you the prediction of what amount of EMI you have to pay using an EMI calculator.
Benefits of Using the HDFC EMI Calculator
For effective loan management, one should carefully understand the EMI calculator; its benefits are immense. Following are the few benefits of the HDFC Home loan EMI calculator –
- It gives you an idea of the future and helps you assess the situation. The loan amount, loan tenure, and interest rate can be adjusted. This flexibility helps the customer plan a proper repayment strategy.
- It relieves you by avoiding financial strain, as it gives you a fair idea of the monthly expenses that you will incur.
- It is very easy to use and compatible. It helps you in better financial planning and decision-making by giving you a fair idea about the repayment schedule and makes your calculation easy.
Tax benefits of paying HDFC EMIs
- By paying HDFC home loan EMI, you will get tax benefits on both interest and principal. These benefits are based on various sections of the Income Tax Act.
- For home loans, you can claim interest as a deduction. This will reduce pressure on your taxable income. Also, the annual principal repayment may qualify for tax deductions.
- You should also consult your Chartered account to give you advice on what impact it will have on your tax deductions.
Steps to Use HDFC Home Loan EMI Calculator
Below are the mentioned steps to use HDFC Calculator:
- Firstly, visit the HDFC website, go to the HDFC EMI Calculator tool, and click on it.
- You have to enter the desired loan amount, the loan tenure in years or months, and the interest rate you expect to be offered.
- After entering the details, click on the “Calculate” button. This will calculate the exact amount of EMI and tell you the principal amount and the interest rate.
- You can adjust the parameters for a more exact calculation. Do this until you find a payment structure that fits your finances.
- It is a user-friendly tool that is not complicated at all, which makes it suitable for everyone.
How Can the HDFC Bank EMI Calculator Help You?
- HDFC home loan EMI calculator helps you in financial planning and gives you an idea of the monthly repayment of the loan you have taken out.
- It helps you assess the customer’s affordability, enabling the user to adjust the loan amount, tenure, or repayment capacity of the customer.
- This tool allows you to compare various loan provider options. Borrowers can make an intellectual choice by seeing the long-term financial impacts of their decisions.
- It also reduces the risk of default as it gives customers a fair idea of their repayment capacity and duties, which helps them plan better for the same.
Eligibility Criteria –
Whether it is an INR 20 lakh Home Loan EMI or INR 30 Lakh Home Loan EMI, the eligibility parameters, which are as mentioned below, remain the same.
| Particulars | Salaried Individuals | Self-Employed Individuals |
| Age | Between 21 years and 65 years | Between 21 years and 65 years |
| Minimum Income | INR 10,000 p.m. | INR.2 lakh p.a. |
| Nationality | Resident Indian | Resident Indian |
FAQs on HDFC Housing Loan EMI Calculator
- How can the HDFC Bank Housing Loan EMI Calculator help you?
Answer – Basically, the Home Loan EMI calculator helps the borrower plan better. It gives the borrower an idea of the monthly amount he/she has to pay and his repayment capacity. It also reduces the risk of default, as the borrower will have an idea of what he has to pay and about his duties so that he/she will not make any default.
- What happens if there is a default on the EMI payments?
Answer- HDFC Home Loan applicants who default on their EMI payments have to pay a delayed instalment payment of 18% p.a. on the overdue instalment amount.
