In the past few years, home loans have empowered millions of individuals to purchase their dream houses without much hassle. HDFC home loans are primarily offered to businessmen and self-employed people having good credit histories. However, even salaried employees, NRIs, and farmers can apply for a loan from HDFC, depending on the fulfillment of specific criteria.
Prospective borrowers are often confused about the EMI tenure and amount. Knowing the EMI amount will help such borrowers to successfully repay their loans. You can use an HDFC Home Loan EMI calculator to know in advance about the interest rates, EMI amount, and loan tenure.
HDFC Bank home loan calculator will allow you to plan your loan repayment. You can change the loan amount, tenure, and interest rates in the home loan calculator to find the best home loan plan for yourself.
There is a standardized method to calculate your home loan EMI. However, Magicbricks offers you a free tool that will instantly analyze your home loan scheme. You can fill in the loan details to know your payable monthly EMI.
Magicbricks Home Loan EMI calculator is extremely easy to use and navigate. Follow these steps to check your EMI –
Many borrowers rely on the standardized formula for calculating their home loan EMI.
E = P.r. (1+r)^n/([(1+r)^n]-1)
where, P = Loan/Principal Amount
E= applicable EMI
r =rate of interest per month (annual rate of interest divided by 12)
n = tenure or number of EMIs
For example, if any borrower avails a loan of 15 lakh for a tenure of 7 years at a 6.80% rate of interest, the applicable EMI will be –
E = 15,00,000 × .0056(1+.0056)^84/([(1+.0056)^84]-1)
However, you must note that the amount of EMI will remain fixed for home loans having a fixed interest rate. If you have a floating interest rate, you need to calculate the EMI amount each time the interest rate changes.
Typically, Amortization is the process of writing down the value of a loan. The Amortization schedules are used by financial institutions and other lenders to showcase a loan repayment schedule as per a specific maturity date. Amortization schedules clarify what part of loan payment constitutes the interest against principal for each monthly payment and find out the outstanding amount after making the payment each time. It also guides the borrowers with the information on how much interest they can save by making payments additionally.
If you have taken a loan of Rs 15 lakh over a 7-year tenure at 6.80% annual interest, your amortization schedule will look like the following –
|Year||Opening Balance||EMI*12||Interest Paid Yearly||Principal Paid Yearly||Closing Balance|
It is a tool that allows you to know the details of your loan payment in advance. The Equated Monthly Installment, commonly known as EMI is directly proportional to your loan amount, the applicable tenure, and the interest rate. Home loans are seen as long-term commitments which makes it essential to plan the whole EMI payment.
A home loan calculator will provide you with the details of your monthly installments, repayment, interest, and balance amounts.
You need to fill in your loan details including:
A home loan amortization schedule shows the reduction in your debt due to regular EMI payments during the loan tenure. It is nothing but a table showing the details of your principal, interest component, repayment amount, and closing balance.
You can reduce your HDFC home loan EMI by opting for a higher down payment or choosing a loan repayment option with a longer tenure. You can also negotiate with your bank or choose a step-down EMI scheme.
Disclaimer: The information available on this site has been gathered from publicly available sources and is accurate to the best of our knowledge. However, please be aware that the rates and other offers may vary based on your profile and may be subject to change without notice. Therefore, we advise you to verify the information before applying for any loan through this website. Magicbricks accepts no liability for any loss arising from the use of the information on this website. Refer T&C for the detail.
(T&C link: https://property.magicbricks.com/terms/terms.html)
**This service is available in select cities only.
*These calculators are only for illustrative purposes. These figures may or may not be applicable to your particular situation. Magicbricks will not be responsible for any loss or liability arising from the use of these calculators.