Knowing home loan EMIs beforehand helps in determining the right loan amount and tenure. Therefore, before applying for an HDFC home loan, you must make sure of the EMI payouts using a home loan EMI calculator. With its help, you can calculate HDFC home loan EMI against different loan amounts, interest rates and loan tenures. Read further to understand how HDFC home loan EMI is calculated, how it can be paid and more.
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How to Use HDFC Home Loan EMI Calculator?
To use Paisabazaar’s Home Loan EMI Calculator, give the following details:
- Loan amount you intend to borrow
- Applicable rate of interest
- Tenure in which you would like to repay the loan
As you fill in the details, your EMI result will appear. In addition to HDFC housing loan EMI amount, the online loan calculator will also display amortization schedule and total interest and loan amount payable
How is HDFC Home Loan EMI Calculated?
To calculate the monthly payments, HDFC EMI Calculator uses the monthly reducing balance method. In the reducing balance method, the interest is calculated on the outstanding principal at the end of every month during your loan tenure. When you pay a loan instalment, you pay off a certain portion of the outstanding principal and also the interest. In the next month, on this reduced unpaid principal amount, HDFC calculates interest, thereby reducing interest cost with every EMI.
Once you decide on the EMI, find the best home loan offer.
HDFC Home Loan EMI Calculation
The table shows home loan EMIs against different tenure, loan amount and interest rate.
How to Pay HDFC Home Loan EMI?
To pay HDFC home loan EMI, you may:
- Issue Standing Instructions (SI) to your banker to pay the instalments through ECS (Electronic Clearing System)
- Opt for direct deduction of monthly instalments by your employer
- Issue post-dated cheques from your salary account
Charges Applicable on Non-payment of HDFC Home Loan EMI
|Particulars||Charges Applicable (exclusive of GST)|
|Charges On Account Of Delayed Payments||Additional interest of up to 24% p.a.|
|Cheque Dishonour Charges||Rs. 200*|
|Incidental Charges (Cost expended in connection with recovery of dues from a defaulting customer)||As per Actuals|
Q. What if the HDFC home loan EMI is not paid on time?
A. If you fail to pay your HDFC housing loan EMI on time, your credit score will drop. Also, HDFC may levy additional interest of up to 24% p.a. on the outstanding principal amount till the dues are paid. If you do not pay your HDFC home loan EMI for 90 days, then your loan account will be marked as a Non-performing Asset (NPA) and if the dues are still not paid, the lender may even auction the pledged property.
Q. What to do if payment is debited but not shown in the app?
A. In this scenario, you must visit the nearest HDFC bank branch or call HDFC customer care number to get the issue resolved.
Q. Can I pay my HDFC Home Loan using cash?
A. No. Cash is no longer allowed as a payment option for HDFC home loan EMI by both HDFC Ltd. and HDFC Bank.
Q. Can I repay my HDFC home loan ahead of schedule?
A. Yes, you can repay your HDFC housing loan ahead of schedule by making lump sum part or full prepayments, subject to the applicable prepayment charges. HDFC also offers a free-of-charge facility to accelerate your loan repayment called ‘Accelerated Repayment Scheme’. This repayment option gives you the flexibility to increase home loan EMIs every year in proportion to the increase in your income, thereby, helping you repay loan faster.
Q. When do I start repaying the principal amount?
A. Repayment of the principal starts from the month following the month in which you get the loan fully disbursed. In case of pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.
For HDFC home loans taken for under construction properties, you get a unique ‘Tranching’ facility wherein you can choose the instalments you wish to pay till the time the property is ready for possession. Any amount over and above the interest which is paid by you goes towards principal repayment, thus helping you repay the loan faster. This is especially useful in case your disbursements are likely to be spread over a longer period of time.