HDFC Bank Home Loan EMI Calculator

HDFC Bank facilitates home loan services through HDFC Bank. The loan offered is available at affordable rates to those who are eligible and have a good credit history. You also have the option to check the option to calculate EMIs in advance with the help of the HDFC Bank Home Loan EMI calculator. It helps in checking loan affordability and then proceeds accordingly. Let us know more about this helpful tool.

How to Use Wishfin HDFC Bank Home Loan EMI Calculator?

The Wishfin HDFC Bank loan calculator is simple and free to use. All you have to do is mention the loan amount you have taken, the interest rate (monthly), and the maximum tenure. You know that the interest rate you get from the bank is the annual rate of interest, the EMI calculator converts the rate into a monthly basis to do the calculation. You not only get the details of monthly installments but also can see the repayment and the balance amount details for each year of the loan. Below is an example for your basic understanding.

HDFC Home Loan EMI Calculation Formula

The calculation in the EMI calculator is made through the below-given formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

where,

EMI = Equated Monthly Installment

P = Principal Loan Amount

R = Monthly Interest Rate

N = Number of Monthly Installments

Consider a scenario where a borrower takes out a home loan of ₹55,00,000 with an annual interest rate of 9% for 28 years. Here’s how the numbers break down:

• Principal Amount (P): ₹55,00,000
• Interest Rate (R): 9% per year, which is equivalent to 9/12/100 = 0.0075 per month
• Loan Tenure (n): 28 years, or 336 months

Using the formula for calculating EMIs:

[55,00,000 x 0.0075 x (1 + 0.0075) ^ 336]/[(1+0.0075) ^336 -1] = 44,896

This calculation results in a monthly EMI of ₹44,896

HDFC Home Loan Amortisation Schedule

Imagine Bharat Gupta, a 29-year-old Content Manager, who is looking to secure a home loan of ₹20 Lakh to construct a house in Noida. He has successfully applied for this loan at HDFC Bank, which has offered him an interest rate of 8.35% per annum over a 15-year term. Bharat is uncertain whether the monthly payments will fit comfortably within his budget. To address this, he utilized the home loan EMI Calculator to determine the monthly installment and total interest he will pay. Let's look at the results of Bharat's calculation.

How Will the EMI Work Out in an HDFC Bank Top-up Home Loan?

The function of the HDFC Bank Home Loan EMI Calculator will vary when it comes to ascertaining the repayment estimates of a top-up home loan. The top-up loan, as the name suggests, is an additional amount over the existing home loan outstanding. This loan is meant to meet your personal and professional expenses.

As the interest rates on a top-up loan range from 9%-10.40% and are different from the regular home loan rates, an individual will need to pay two different EMIs a month – one for the running loan and another one for the top-up loan. Maybe you will need an example to understand the concept. So, let’s consider one below.

Example – You are currently paying a 20-year home loan of INR 50 lakh at an interest rate of 8.60% per annum. At this rate, the EMI must have been INR 43,708. This will lead to an estimated interest outgo of ₹54,89,953 over 20 years. After the completion of 1 year, your outstanding loan balance has come down to ₹49,01,687. If you apply for a top-up loan of say ₹4 lakh and get it for 4 years at 9%, how much will be the EMI? It will be ₹9,954. The interest outgo on this 4-year top-up loan is ₹77,793

So, your total EMI outgo including that of the top-up loan will rise to ₹53,662. The total interest outgo including that of the top-up loan will be ₹55,67,746.

The Key Benefits of Using HDFC Bank Home Loan EMI Calculator

The HDFC Bank Home Loan EMI Calculator is a valuable tool for prospective home loan borrowers. Here are the main advantages of using this calculator:

• Accurate Loan Estimation: The calculator provides precise calculations of your EMIs based on the loan amount, interest rate, and tenure you input. This accuracy helps in making informed financial decisions without the risk of manual calculation errors.
  
• Time-saving: Using the calculator saves time by providing instant EMI estimates. This eliminates the need for complex manual calculations and allows you to quickly assess different loan scenarios.
  
• Detailed Amortization Schedule: The calculator breaks down each EMI into principal and interest components over the loan tenure. This detailed breakdown is crucial for understanding how the loan balance decreases over time and planning for prepayments.
  
• Free and Unlimited Use: The calculator is free to use and can be accessed multiple times. This feature allows users to try different combinations of loan parameters without any restrictions.
  
• No Personal Information Required: The calculator does not require you to input any personal information, ensuring your privacy and making it a hassle-free tool to use.

HDFC Bank Home Loan Eligibility

Here are the eligibility criteria for applying home loan with HDFC Bank:

Factors that Impact HDFC Bank Home Loan EMI

Here are the factors that influence the monthly EMIs you will pay for your HDFC Bank home loan:

• Loan Amount: It is a primary factor in determining your EMIs. Higher loan amounts result in higher EMIs, as the borrower needs to repay a larger sum over the loan tenure.
  
• Interest Rate: The rate applied to the home loan significantly impacts the EMI. HDFC Bank offers home loans with competitive interest rates, but the exact rate can vary based on the borrower's credit profile and market conditions. A higher interest rate increases the EMI, while a lower rate reduces it.
  
• Loan Tenure: The tenure or duration of the loan also impacts the EMI you will pay. Longer tenures result in lower EMIs as the repayment is spread over a more extended period. However, this also means paying more interest over the life of the loan. On the other hand, shorter tenures lead to higher EMIs but lower total interest paid.
  
• Credit Score: A borrower's credit score plays a vital role in determining the interest rate offered by the bank. A higher credit score can lead to lower interest rates, thereby reducing the EMI. A lower credit score might result in higher interest rates and higher EMIs.
  
• Down Payment: The size of the down payment a borrower makes can significantly affect the EMI. Making a larger down payment reduces the total loan amount, which in turn lowers the monthly EMI. On the other hand, a smaller down payment means borrowing more, which increases both the loan amount and the corresponding EMI.
  
• Income and Employment Stability: The borrower's income and job stability also impact the EMI. Those with stable and higher incomes are seen as lower risk, which can lead to more favorable interest rates and subsequently lower EMIs. In contrast, borrowers with less stable income situations may face higher interest rates.

Fees and Charges Related to HDFC Bank Home Loans

Here are the fees and charges that are associated with HDFC Bank home loans:

Other Charges

Main Limitations of Using HDFC Bank Home Loan Calculator

Here are the main drawbacks of using HDFC Bank home loan calculator:

• Additional Costs Not Included: The estimates provided are based on principal, interest rate, and loan tenure alone. Additional charges like processing fees, legal fees, and insurance that might affect the total cost are not included.
  
• Variable Interest Rates : The HDFC Bank calculator uses a static interest rate for calculations. For loans with floating rates, EMIs can fluctuate with market conditions, which isn't reflected in the initial estimates.
  
• Credit Score Exclusion: The impact of your credit score on the interest rate is not considered. Changes in the interest rate due to your credit standing could alter the actual EMI amounts significantly.
  
• Simplified Calculation Method: The tool assumes each month and year have a consistent number of days, which might slightly skew results for loans calculated with more precise methods.
  
• Ignoring Prepayments: The ability to make prepayments and their effects on the loan’s interest and tenure aren't calculated, which could otherwise show potential savings or changes in the loan schedule.
  
• Non-Personalized Results: It doesn't account for personal financial conditions like existing debts or other financial obligations, which are important for assessing loan affordability.
  
• Estimations Only: It offers a ballpark figure rather than precise details, which may differ in specific personal financing situations.