Hero Housing Finance EMI Calculator

Hero Housing Finance calculates Equated Monthly Instalments (EMIs) using the below-mentioned formula: 

EMI = P x R x (1+R)^N / [(1+R)^N-1]. 

Where 

• P means the principal loan amount
• R means the monthly interest rate
• N means the loan tenure in months

Lenders have their own eligibility calculator, using which they calculate the borrower’s home loan eligibility and EMI.

• User-friendly: A home loan EMI calculator is extremely easy to use and saves you from the complex mathematical formula for calculating the EMI. All you have to do is, mention some basic details of the home loan (principal amount, interest rate, repayment tenure), and the result will be displayed immediately.
• Breakup of repayment: Your home loan includes many components, raising your overall costs. The housing loan EMI calculator gives you the complete amortization schedule mentioning the overall interest cost, EMIs, total repayment, etc.
• Easy comparison: You can use the EMI calculator to compare different home loan schemes provided by the same lender or different lenders. Accordingly, you can make an informed decision and apply for a home loan that fits your budget and preferences.
• Determining tenure: This calculator is frequently used to determine the appropriate tenure. If you choose a short tenure, your EMI will be higher, while increasing the repayment period will also increase the interest payable amount. Hence, the balance of both is crucial.
• Convenient: You can use this online tool at any time of day and from anywhere. All you need is a laptop or smartphone with an internet connection.
• Budget management: Using the home loan EMI calculator, you will know beforehand how much you have to pay each month to repay your home loan. It also informs about the interest cost of each EMI. Knowing these things in advance allows you to cut unnecessary expenses for early repayment and effective debt management.

Below is the table to help you compare Hero Housing Finance home loan EMI with the other top 10 lenders. The EMI is calculated for Rs. 50 Lakhs loan amount for 20 years of tenure: 

Below is the Hero Housing Finance EMI Calculator formula, using which you can calculate your home loan EMI manually:

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

Where,

P= Principal loan amount

R= Rate of Interest

N= Repayment tenure

Following are the tips on how to reduce your home loan EMI:

• Refinance: You can reduce your EMI by refinancing your home loan if interest rates drop significantly compared to your existing home loan interest rate. Refinancing can result in lower interest rates, leading to lower EMIs and shorter tenure.
• Higher down payment: Making a higher down payment reduces your EMI as the loan amount will be lesser.
• Prepayment: If you have any surplus funds, consider prepaying your home loan. Regular prepayments can shorten your tenure and save your interest costs.
• Negotiation with the lender: Negotiating with your lender (especially if you are their existing customer) can also reduce your interest rate sometimes, resulting in lower EMIs.
• Choosing a floating interest rate: A variable interest rate may be lower than a fixed interest rate in the long run. This reduces your EMI too.
• Accelerated repayment: Paying extra EMIs can also reduce your repayment tenure, saving you interest and reducing your EMIs.
• Compare interest rates: Comparing home loan interest rates of various lenders before applying for the loan can get you the best interest deal, thus reducing your EMIs.

Following are some of the key factors that affect Hero Housing Finance home loan EMI:

• Principal loan amount: Your EMI for any loan is directly related to the amount you borrow. If you borrow a large amount, your EMI will be higher; if you borrow less, the EMI will be lower too. The down payment made by the borrower changes your principal amount. The higher down payment means a small fund is required from the lender, resulting in a lower EMI.
• Rate of interest: The interest rate applied on your home loan is determined by several factors including your age, income, property’s condition, occupation status, loan amount to be borrowed, tenure and so on. If your profile is excellent, the lender will give you a low interest rate, which results in a lower EMI.
• Repayment tenure: The longer the tenure, the more affordable your EMI will be but at the higher interest cost. However, if you reduce the tenure, your EMI will increase significantly.