HSBC Bank Home Loan EMI Calculator

HSBC Bank listed as the world's largest organization in the banking sector operates in 65 countries across the globe and the clientele base is over 40 million. The Bank offers services for both Commercial and Retail Sectors.

Various commercial and retail lending products are offered and they offer services to the MSME Sector also. Home loans are one of the most popular retail lending products of HSBC Bank.

The Bank offers two types of home loans. Regular Home Loan and Smart Home Loan. Smart Loans can be opted by customers who intend to make ongoing pre-payments to reduce the cost of the loan.

Additional Info: Apply SBI MaxGain Home Loan @6.70%

Equated Monthly Instalment consists of both the principal and the interest component. It is a specific amount that has to be paid monthly on a specific date to the loan provider by the borrower till the entire loan is cleared. The EMI will be first adjusted towards the interest component and the remaining will be adjusted towards the principal component. The interest component will be higher in the initial period as the outstanding principal balance also will be high. As the balance keeps reducing the interest also keeps reducing and so does the outstanding balance since a higher portion will be adjusted towards the principal as the period progresses. EMI is derived based on the loan amount, loan tenure and the rate of interest on home loan. Since the rate of interest plays a very significant role in determining the EMI you should compare the offers of various loan providers and choose the most economical one.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

HSBC Bank Home Loans provide loan for the construction of a house and for the purchase of a house/flat and also for the purchase of select under-construction properties under projects that are approved by the Bank. The Bank provides a Regular Home Loan that is similar to a term loan and a Smart Home Loan wherein an overdraft to the extent of the sanctioned home loan will be set to the account which performs like a current account.

The lowest EMI as on date is 631/- per lakh for HSBC Bank Home Loan @ 6.49%p.a.

The rate of interest for HSBC Bank Home Loans ranges between 6.49% to 6.59% for a Regular Home Loan and between 8.80% to 8.90% for a Smart Home Loan with commitment fee and between 9.20% to 9.30% for a Smart Loan without commitment fee.

EMI for a loan at 6.49% p.a. interest.

Additional Info: Also Check LRD Loan

EMI calculator is a financial device that enables calculation of EMI in a very simple and easy way.

The rate of interest is of two types. A flat rate of interest and interest on reducing balance. To calculate EMI for a flat rate of interest the principal amount and the interest for the entire tenure have to summed up and divided by the total number of months (as per loan tenure). For calculating the EMI on reducing balance the following formula has to be applied.

P*r* (1+r) ^n/([(1+r) ^n]-1)

P stands for Principal

R stands for rate of interest

N stands for the loan tenure

Calculating the EMI applying the above formula manually can be very confusing, complex and time-consuming. While trying various combinations and permutations to arrive at the desired EMI you may miss out on some aspect and the end result will turn out inaccurate and you will be making the wrong choice of home loan.

To avoid the above confusion you can use an Home Loan EMI calculator which will give a 100% accurate result on providing the loan amount, loan tenure and rate of interest that you have ultimately decided after doing research on the offers available in the market.

Additional Info: Best Home Loan Interest Rates @6.70%

You will have to consider a few things for deciding the right EMI:

Plan your EMI: EMI is a commitment that you will have to regularly keep up. A home loan EMI is a long-term commitment and it can take up the major portion of your monthly income. Planning your EMI before applying for the loan in order to make the right choice is very essential.
LTV Ratio: Home loans will essentially be a percentage of the market value of the property you intend to acquire. It can range from 70% to 90%. The higher the LTV, the higher will be the rate of interest. Bringing in a higher amount of margin will enable you to get the home loan at a lower rate of interest which will reduce the cost of the loan.
FOIR: Fixed Obligation to Income Ratio is the ratio between the current financial obligation along with the proposed EMI to your monthly income. The FOIR should be kept below 50% generally to be eligible for a loan. So while arriving at the EMI this aspect should be considered.

Additional Info: Also check ICICI Home Loan EMI Calculator

Rate of interest will undergo a change whether it is a floating rate, a fixed rate or a semi-fixed rate. The only difference is that in a floating rate of interest the rate keeps changing every time the RBI changes the bank rate. With a fixed-rate of interest and semi-fixed rate, the rate of interest will change after a certain period when it is reset as per the prevailing rate.

Every time the rate of interest changes, the EMI will change. The change could be positive or negative.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

Pre-payments made along with the regular EMI will bring down the outstanding principal on the loan. The EMI will reduce if an option is given for resetting the EMI. Otherwise, the tenure will come down. If you are able to service the present EMI, then opting for a tenure change will be ideal to reduce the cost of the loan.

Additional Info: Also check SBI Home Loan EMI Calculator