HDFC Bank Home Loan EMI Calculator

What is HDFC Bank Home Loan EMI Calculator?

HDFC Bank provides the home loan EMI calculator for prospective housing loan borrowers to select various combinations of interest rates, loan amounts and loan tenures and obtain the EMI and total interest costs incurred for those combinations. They can also use the online home loan EMI calculators provided by multiple lenders and financial marketplaces to calculate their EMI and interest cost on their home loans.

How to Calculate HDFC Bank Home Loan EMI?

The mathematical formula to calculate the home loan EMI is as follows:

[P x R x (1+R)^N]/[(1+R)^N-1], where:

‘P’ stands for the Principal Amount,

‘N’ stands for the Loan Tenure (in months), and

‘R’ stands for Rate of Interest

However, using the above-mentioned formula to calculate their home loan EMI may lead to manual errors and inaccuracies in EMI calculation. Hence, prospective HDFC Bank home loan applicants can either use the Housing Loan EMI Calculator provided by the bank or other home loan lenders/financial marketplaces to calculate their HDFC Bank home loan EMI and interest cost based on various combinations of the interest rate, loan amount and repayment tenure.

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How to Change HDFC Home Loan EMI?

Existing HDFC home loan borrowers can explore three options to reduce their EMIs:

• changing their interest rates
• changing their loan tenure
• by making partial-prepayments.

Steps to Reduce HDFC Home Loan EMI

For borrowers seeking to reduce their interest rates, HDFC Bank offers the option of reducing their interest rates on the payment of a conversion fee. Exercising the prepayment option would reduce the EMI for the borrowers only if they opt for the EMI reduction option. The third method involves the changing of loan tenure without making any prepayments.

Steps to Increase HDFC Housing Loan EMI

Borrowers seeking to increase their EMIs due to their increased repayment capacity can contact the bank for reducing their loan tenure. However, borrowers seeking to increase their loan tenure to reduce their existing repayment burden should note that requests for tenure increase are considered as loan restructuring.

Thus, it can adversely impact the credit score of the borrowers and thereby, their future loan and credit card eligibility. Borrowers should avoid this option to the extent possible unless they are finding it extremely difficult to service their current EMIs.

How do I select the ROI for Home Loan EMI Calculator?

Home loan EMI calculators provide prospective loan borrowers with the option to select the rate of interest (ROI) from a wide range of interest rate options available in the calculator. However, note that HDFC Bank will determine your home loan interest rate after factoring in your income, age, residential status, repayment capacity and other aspects of your credit profile.

Factors affecting HDFC Bank Home Loan EMI

The factors which play a role in determining both the interest costs and EMI for loan applicants availing home loans from HDFC Bank are mentioned below:

Rate of Interest

HDFC Bank offers home loans at interest rates starting from 7.90% p.a. Loan applicants availing home loans at lower rates of interest will have to pay lower interest costs, which in turn will reduce their EMI amount. The reverse would be true for home loans availed at higher interest rates.

Hence, prospective borrowers should first check the home loan interest rates offered by top lenders and then, compare them with the interest rates offered by HDFC Bank before making the home loan application with the lender. Here are the interest rates for home loans offered by top banks and housing finance companies:

Loan Tenure

HDFC Bank offers home loan repayment tenures of up to 30 years for its loan applicants. Existing borrowers can lower their EMIs by increasing the repayment tenures on their housing loan. However, doing so will increase both their interest costs and the total repayment amount.

Loan Amount

The final loan amount for HDFC Bank Home Loans depends on the loan-to-value ratio offered by the lender. LTV ratio is the total percentage of a property’s value that a lender can finance through their home loan. The borrower has to arrange the remaining loan amount from their own funds as down payment or margin contribution.

Note: RBI has capped the upper limit for home loan LTV ratios based on the loan amount. The home loan amounts and their corresponding LTV ratios are as follows:

Home loan lenders usually set the LTV ratios for their applicants based on several factors including their applicants’ income, credit scores, repayment capacity, etc. Prospective borrowers opting for higher loan amounts will have to pay higher EMIs and interest costs.

Charges Applicable on Non-payment of EMI for HDFC Bank Home Loans

HDFC Bank may levy the following charges towards its home loan applicants for non-payment of the EMI amount:

Also Read: HDFC Bank Home Loan Processing Fees

Benefits of Using HDFC Home Loan EMI Calculator

The main advantages of using home loan EMI calculators to know the monthly repayment amount for HDFC Bank Home Loans are mentioned below:

• Easy to use
• Provides quicker and accurate results
• Helps in budget management
• Improves home loan eligibility as loan applicants can select higher loan tenures and/or reduce their loan amounts to bring their overall debt obligations (including EMI of proposed home loan) to within 50-60% of their monthly income.
• Applicants using the EMI calculator to know their EMIs are better prepared to manage their finances and avoid defaulting on their EMIs, which in turn will increase or maintain their credit scores.

FAQs on HDFC Housing Loan EMI Calculator

How can the HDFC Bank Housing Loan EMI Calculator help you?

Prospective applicants can use the HDFC Housing Loan EMI Calculator to calculate the total interest costs and EMIs payable on their home loans for various combinations of loan tenures, interest rates and loan amounts. Those seeking home loans can also use the online HDFC home loan EMI calculator to know the optimum EMI and repayment period for their housing loans, depending on their repayment capacity and unavoidable monthly contributions towards their crucial financial goals.

How much is the EMI for Rs 70 lakh HDFC Bank Home Loan?

The EMI Calculation for Rs 70 lakh HDFC Bank Home Loans depend on the repayment tenure and interest rates. Let us assume that rate of interest and tenure on your HDFC Bank Home Loan is 8.35% p.a. and 15 years, respectively. In that case, the EMI for your home loan would be Rs 68,318.

You can use the home loan EMI calculator, provided by home loan lenders and online financial marketplaces, to calculate the EMI of your housing loan based on other interest rate and tenure values.

What happens if I default on my EMI payments?

HDFC Home Loan applicants who default on their EMI payments have to pay a delayed instalment payment charge of up to 18% p.a. on the overdue installment amounts. Home loan applicants should avoid defaulting on their EMI payments as it inflates their overall borrowing costs and may also have a negative impact on their credit scores.

What does Own Contribution means in HDFC Home Loan?

Own contribution refers to the down payment or margin contribution amount that HDFC home loan borrowers pay up front, from their own funds, towards their home purchase. The rest of the home purchase amount would be financed through the HDFC Bank home loan, depending on the loan-to-value (LTV) ratio set by the lender.

When do I start repaying the principal amount for HDFC Bank Home Loan?

As per HDFC Bank, Home Loan borrowers start repaying the principal amount from the payment of their first EMI. The EMI for your HDFC Bank Home Loan begins from the month immediately after the month of your full loan disbursement.

Can I switch from a floating rate of interest to fixed rate of interest in HDFC Home Loan?

HDFC Bank Home Loan borrowers can switch from floating to fixed interest rates and vice versa by paying the conversion fees. In case of switching from fixed to floating interest rates, the bank charges a conversion fees of up to 0.5% of the principal outstanding plus any undisbursed amount at the time of interest rate conversion or up to Rs 50,000, whichever is lower, and up to 1.75% of the principal outstanding and any undisbursed amount at the time of conversion in the case of switching from combination rate home loans (fixed rate) to floating interest rates.

Can I pay more than my scheduled EMI of HDFC home loan for few months?

Yes, you can repay more than your scheduled EMI of an HDFC home loan in the form of partial prepayments. Note that HDFC Bank levies prepayment charges on prepaying home loans availed at fixed interest rates other than from their own fund sources.

How can I download my HDFC home loan statement?

HDFC Bank home loan borrowers can visit the bank’s branches to download their home loan statement. Those having an HDFC Bank account can also login to the NetBanking facility, click on the Loans tab, and then click on “Annual Loan Statement” under the Request tab on the left-hand side. Then, they can find the ‘Download Requested Letter’ option to download the requested home loan statement.

Home loan borrowers without an HDFC Bank account, can log in to the Loans Portal, click on the loan amount on the Dashboard, and scroll down to the statement tab. Then, they can select the Financial Year and click on the ‘download’ option to download their home loan statement.

How can I change my HDFC home loan EMI date?

You can visit HDFC bank branch and submit an ‘Application for Change in EMI Due Date’ to change your home loan EMI due date.

What is the EMI for a 20 lakh home loan for 20 years availed from HDFC?

The EMI calculation of Rs. 20 lakh home loan would depend on the interest rates, apart from loan amount and tenure. Hence, use an online home loan EMI calculator to determine the optimum EMI value against different sets of interest rates, amounts and tenures.