HDFC Home Loan EMI Calculator

EMI is a monthly fixed payment that will be made every month on a fixed date till the end of the loan tenure. For big-ticket loans like Home Loans, it is very essential to know your commitment in advance so that it is easy to plan your budget accordingly. HDFC Bank home loan EMI calculator is one such tool that will help you calculate the EMI for the loan you plan to avail of. The EMI is based on the rate of interest, tenure and the loan amount. You can use combinations of the three variations to arrive at the eligible amount with an EMI to suit your budget.

Additional Info: Also check Home Loan for Salaried Employees

The HDFC Home Loan EMI calculator is easy to use and it helps you to plan your cash flow for servicing the home loan. With the calculator, you will have a clear picture of the long term financial commitment so that you can plan ahead for the new addition to your monthly budget.

For using the HDFC Home Loan EMI calculator follow the procedure given below:

• Access the website of the bank
• Under Loan Products choose ‘Home Loan’
• You will find the option ‘Checklist and Calculators’. Select ‘Home Loan EMI Calculator under this option’
• Input the loan amount you desire to avail and the tenure you opt for and the rate of interest. Choosing a longer tenure will enhance home loan eligibility.
• With the given input the EMI will be calculated.
• You can do the calculation various times by changing the value of the variants till you arrive at the EMI that suits your budget.

Additional Info: Also Check HDFC Bank Home loan Statement.

You can use the HDFC Home Loan EMI calculator to understand the overall interest that will be paid for the loan amount desired and for the tenure opted. Lower the tenure lower will be the interest cost on loan. HDFC Bank home loan interest calculator formula is EMI = P × r × (1 + r)n/((1 + r)n - 1) wherein

EMI is the monthly repayment towards the loan 

P is the Principal

R is the rate of interest

N is the tenure.

You can decide the loan amount as per your budget by calculating the EMI by changing the value of the variants. If the tenure is longer, the EMI no doubt will be lower, but the interest cost will be higher. The interest is calculated on the reducing principal balance. But during the initial years, a large portion of the EMI will be adjusted towards the interest, and so there will be not much difference in the outstanding principal balance. If you intend to reduce the interest cost on your loan, then it is advisable to opt for a shorter tenure. Using the EMI Calculator, you will be able to arrive at the loan amount that suits your budget, and you can plan your investment accordingly.

HDFC Bank Home Loan EMI calculator enables you to assess the monthly repayment towards the home loan within your budget. You can do the calculation as often as you desire until you arrive at the EMI that suits your pocket. 

The various benefits of the HDFC Home Loan EMI calculator are:

• It is a user-friendly, simple tool with many advantages.
• It provides you with an accurate value at the quickest time
• It will help you assess your affordability so that you can make an informed decision regarding the amount you are going to borrow.
• Your investment can be within your budget as the EMI calculator enables you to decide the loan amount that will fit your affordability.
• Since the EMI is within your means, you will be able to service the loan promptly. This will help you to build your credibility.
• With the credibility proven, availing of future loans will be much easier

It is essential to know the loan eligibility before applying for a home loan so that you do not go overboard and land up in a financial mess. The various reasons to use HDFC Bank Home Loan EMI calculator are:

• It helps you assess the repayment capacity even before applying for the loan to service the home loan promptly without missing out on any EMI.
• Prompt repayment will, in turn, help in building a good credit score. A good score will help you in getting easy approvals for other loans like home loan top up, home improvement loans, etc.
• By understanding the EMI in advance, you will be able to plan future expenditures prudently.
• You can opt for a longer-term initially to fit the EMI into your budget. Since you will also be aware of the interest cost, you can seriously pre-pay the loan whenever you have any surplus funds.

Most of the popular banks like Axis Bank, ICICI Bank, Punjab National bank, SBI, etc., provide home loans at attractive rates of interest. If you have to decide on the best deal, you will have to compare the home loans provided by various popular banks. Here below is a comparison of the EMI of HDFC bank home loan with other popular banks arrived at by using the HDFC Bank Home Loan EMI calculator and the Home Loan EMI calculators of the other respective banks. The period of home loan considered for calculation is 20 years.

Comparison of SBI Home Loan EMI with other Popular Banks

HDFC Bank Home Loan EMI Calculator enables estimation of EMI with great ease. You need to calculate the EMI in order to manage your cash flows for honouring the sizable commitment promptly. You will also understand your limitations while planning to buy or construct a new house. Leveraging the HDFC Bank Home Loan EMI calculator, you can estimate the EMI to suit your budget. How the estimation can be done is given below.

• HDFC Home Loan EMI calculator does the calculation with great speed and accuracy.
• With an input of rate of interest, tenure and the loan amount, you can within no time get the EMI value.
• The HDFC home loan rate of interest varies with the loan amount, income and credit score.
• You can change the variants, i.e., the interest, tenure and the loan amount, to arrive at the 

EMI that fits your budget.

• Generally, the permutation and combination are tried out by changing the loan amount and the tenure.
• An added advantage is that the EMI calculator will give an amortisation schedule that gives a split-up of EMI adjustment towards the interest and the principal component.
• You can observe from the schedule that initially, the payoff towards the interest component will be higher. The principal reduces at a very slow pace initially, so prepayments towards the loan in the initial stages will be more beneficial.
• With the HDFC home loan EMI calculator, you can arrive at an EMI to suit your budget and start planning for prepayments whenever there are surplus funds. By doing so, you will be saving on the interest cost.

HDFC bank also provides a home loan top-up for eligible home loan borrowers who can use the funds for any purpose similar to a personal loan. Suppose you at any point in time decide to avail of the home loan top-up facility. In that case, you can calculate the additional EMI that has to be provided for in the monthly budget using the HDFC Bank Home Loan top-up EMI calculator and plan your future expenditure accordingly.

A home loan can be a long term commitment owing to the long tenure that is permitted. The maximum repayment period of an HDFC home loan is 30 years. With such a long term commitment, it is necessary to understand the factors that affect the home loan EMI. The three main factors that affect the home loan EMI are

• Loan amount: The loan amount is the most important factor as the whole plan of investing in a dream home depends on the eligible loan amount. The higher the loan amount, the higher will be the EMI. The HDFC home loan rate of interest depends on the loan amount. The higher the loan amount, the higher will be the rate of interest. So loan amount is the crucial factor that decides the EMI. 
• Interest Rate: The EMI is directly proportional to the Home Loan Interest Rate. The higher the interest rate, the higher will be the EMI.
• Tenure: The term for which the loan has to be repaid is tenure. The EMI is inversely proportional to the EMI. The higher the tenure, the lower will be the EMI. If you are expecting some surplus funds like maturity proceeds of a fixed deposit or a considerably large hike in income, etc., you can initially opt for a higher tenure and then make periodical prepayments to clear the home loan before the maturity of the loan tenure.

The other factors besides the ones mentioned above that impact the EMIs are:

• Change in rate of interest: If you have opted for a floating rate of interest, the EMI will change as the rate of interest changes. The EMI will increase if the interest rate increases and will decrease if the interest rates reduce.
• Prepayments to the home loan: When you make the prepayments, you can either retain the existing EMI to reduce the tenure or retain the tenure to reduce the EMI.

Additional Info: Also Apply for Home Construction Loan

The home loan EMI calculator gives you an insight into the cost of the loan in terms of the interest payout on a loan amount for a given tenure. But there are other charges that will be collected for a home loan which the EMI calculator cannot tell you. 

The various charges that add up to the interest cost are:

• Processing charges
• Prepayment/preclosure charges
• Legal Fees
• Property Valuation Fees
• Stamp duty

The banks collect a processing charge ranging from 0.5% to 3% of the loan amount on approval of the home loan. For any prepayments made to the home loan, the banks collect a prepayment fee ranging from 2% to 4% of the prepaid amount. Similarly, if you foreclose the home loan, you will be charged a foreclosure fee ranging from 2% to 4% of the outstanding loan amount. Legal fees for scrutiny of the property documents, fee for valuation of the property and stamp duty for creation of mortgage will all be collected at actuals. The Home Loan EMI calculator cannot tell you about these charges while calculating the overall amount that will be paid at the end of the loan tenure.