In India, home loans represent one of the most popular financial products available to individuals. There has been a slow recovery in the real estate industry as a result of the 2008 financial crisis.
Since 2009, when it continued to grow, it has been possible to observe the rebound since then.
In today's market, the demand for real estate is on the rise, and mortgage loans provide thousands of people with the chance to realise their dreams of owning their own home. HDFC is one of the premier financial institutions which offer these types of loans.
To calculate their EMI amount as per their loan amount and the tenor of their loan, a prospective borrower needs to calculate their EMI according to their loan amount and their tenor.
For such a long-term loan to be successfully repaid, you need to devise the right financial plan. The HDFC home loan EMI calculator can give you a great deal of assistance in this endeavour.
Emi Calculator for Home Loan HDFC
Benefits of HDFC Home Loan Calculator
- Home loans provided by private developers and banks for purchasing apartments, townhouses, and bungalows (where projects have been approved).
- The loans given to the developers for the purchase of residential properties are the DDA loans, MHADA loans etc.
- Purchasing properties as part of existing cooperative housing societies, apartment owners' associations, or local government settlements that have been built up or privately built up properties.
- Construction financing is provided to finance the work being carried out on a freehold or leasehold parcel of land or on a plot assigned by the Development Authority.
- It is expert technical and legal advice that assists you in your decision to purchase your home.
- There is a large, integrated branch network that allows you to take out a home loan from any location in India.
- AGIF has arranged for special home loans for employees of the Indian Army under an arrangement with them.
There are a variety of tailored home loan options for customers of all ages and from all walks of life.
Our company provides better terms such as longer tenure loans, telescopic repayment options, and a choice of adjustable rate options for younger customers, to help them become homeowners at an earlier stage in their lives.
The fact that we have over four decades of experience in providing home finance to all types of customers has given us an understanding of the diverse needs of every customer, and we have helped them fulfil their dream of owning a home.
HDFC Home Loan EMI Calculator Formula
With the help of the home loan calculator, one can calculate how much the monthly EMI amount on a home loan is based on a standardised method.
E = P.r. (1+r)n (1+r)n-1, where
The EMI in this case is E.
P represents the principal.
r represents the interest rate.
N represents the number of EMIs.
To demonstrate this for a loan of Rs. 1,50,00,000, for a tenure of 20 years at the rate of 7.05% will amount to the following:
Monthly Home Loan EMI: ₹1,16,745
Principal Amount: ₹1,50,00,000
Interest Amount: ₹1,30,18,910
Total Payable Amount : ₹2,80,18,910
HDFC Home Loan EMI Calculation
Using the following example of the aforementioned loan of Rs. 1,50,00,000 for a tenure of 20 years at a rate of 7.05% as a showcase, this would be. In this case, the amortisation schedule would look like this:
EMI Payment Monthly | Rs. 1,16,745 |
Amount Principal | Rs. 1,50,00,000 |
Amount of Interest | Rs. 1,30,18,910 |
Total Amount to be Paid | Rs. 2,80,18,910 |
HDFC Home Loan Eligibility Requirements & Documents required
In order to qualify for a mortgage loan, there are certain steps you need to follow for each applicant and co-applicant. Completed and signed home loan applications need to be submitted along with the following documents.
- Document to prove your address is the following: photo ID, property tax bill, electric bill (up to three months old), passport.
- Applicants who have less than one year's experience in the current employment position must submit an employment appointment letter.
- This document should contain the following information:
- A copy of a Form 16 from the previous two years' employment.
- A salary slip for the past three months.
- An account statement for the past six months.
- Passports, driving licences, voter cards, and PAN cards all qualify as proof of identity.
Documents required for HDFC salaried home loans
- You will need to provide proof of address, such as a living address, a foreign passport, a leave and licence, a registered rent agreement or utility bill (up to three months old).
- Proof of Identification: Passport, Driver's Licence, Voter ID and PAN.
- Applicants for bank loans need to fill out a bank loan application form and attach a passport-sized photograph to the form.
- Payslips for the last three months.
- Documents that prove income.
- For the past two years, the Form 16 will be required.
- A copy of your tax identification number (PAN).
- There must be six months of bank statements that show the salary received from the employer and any EMIs paid for outstanding debits.
Documents Required for Self-Employed HDFC Home Loan
- Bank Statement: The bank statement for the past year.
- Evidence of a business's existence: a 3 year old Saral copy, an official copy of the company's registration, and a copy of the Shop Establishment Act.
- We need the following proof of income - tax returns for the last 3 years, including income computation, profit and loss account, audit report, balance sheet, etc.
- A proof of office address would include a mortgage document and utility bill.
- Proof of ownership of a business: conveyance documents, utility bill, maintenance bill.
- Passport/Voter ID/Driver's Licence/ Voter ID/PAN require a photo identity proof.
- Proof of Residence Address: Rental Agreement, Utility Bill, Licence or Voter ID.
- Colour photograph the size of a passport
Why should you use HDFC Home Loan EMI Calculator?
Home loans are secured loans that are backed by collateral. A borrower might be confused as to the amount an EMI is that they should pay towards the loan's repayment if there are several factors to keep in mind.
Those who are applying for HDFC housing loans can use the HDFC housing loan calculator to calculate how much EMI they need to pay each month in order to stay on track with the repayment expectations of the lender.
EMI Calculator is a website that calculates the exact EMI amount for borrowers, based on raw data.
In other words, it calculates the exact EMI amount very quickly. The calculator will show you the EMI amount payable in a few seconds, thus saving you both time and energy.
It provides you with exact results to the very last decimal place. It is very helpful in planning your finances based on the information it provides you with.
There are very specific home loan calculators on this site.
Factors Affecting HDFC Home Loan EMI
There are four major factors which determine the home loan EMI.
There is a term called principal. It stands for the amount of money you borrow from the bank. A home loan's principal amount is a major factor in determining the amount of EMI you will need to pay in order to repay it.
There is a term called interest rate which refers to the cost of a home loan provided by banks to lenders at a specified rate.
In this case, the higher the interest rate will be, the more will be your EMI outflow every month, since the longer the interest rate will remain the higher will be your home loan EMI.
If you are planning to borrow money, you should always make a market study of the rates available from different lenders before you choose one.It is important to note that the loan tenure refers to the amount of time throughout which you have taken out a loan from a bank until you have completely repaid it.
The longer the loan term, the lower the interest rate, making it a good choice for individuals.Method used for calculation: Another important factor in determining the EMI outflow is the method used by the bank to calculate the EMI.
Frequently Asked Questions
1. When does the interest rate of HDFC home loans change?
Irrespective of market fluctuations, the interest rate does not change. By allowing a set monthly payment schedule that doesn't fluctuate, a fixed rate loan aids in long-term budgeting and planning.
2. What are the processing fees for HDFC home loans?
The maximum loan amount that can be perforated is up to 0.50% of the loan amount OR Rs. 3,000 plus applicable taxes, whichever is higher.
If you are leaving the business, your Retention Amount must equal at least 50% of the fees charged if applicable.
3. Does HDFC give pre-approved home loans?
A home loan is one of the products offered to individuals by HDFC that can be used either for the purpose of purchasing a house or land or as a means of constructing a residential property.
4. Does an HDFC home loan take the salary of the spouse into consideration?
It is possible to add your spouse to your loan application as a co-applicant. As long as HDFC has access to your spouse's income documents, the HDFC will consider his or her income when determining your eligibility for a home loan.
5. How can I decrease HDFC home loan EMIs?
The following example will help you understand how you can cut your EMI payments by Rs 15,257 if you extend your home loan tenure to 20 years if you have 10 years left on your loan of Rs 40 lakh at 7.5%.