Mr. Ajit Shukla is planning to buy a furnished home costing him ₹ 25 lakhs around his nearest locality but couldn't help arrange finances to meet out his expenses of paying the entire amount. He is now on a look out for a reliable financial institution that can fund for his estimated budget.
He plans to keep aside ₹ 4 lakhs per annum from his net salary intake but for the remaining amount, he is on the verge of considering HDFC as his prime lender that can do justice with his budget. He tries to figure out the costing portion with the help of HDFC Home Loan EMI Calculator by using the following formula:
EMI Calculation Formula
EMI is computed by using the following formula :
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where,
EMI= Equated Monthly Installment
P= Amount of Principal Loan
R= Monthly Interest Rate
N= Number of Monthly Installments
HDFC Home Loan EMI Calculator
HDFC Home Loan EMI Calculator is an online calculator required to examine the monthly instalment that is required to pay against the repayment of your loan. The calculation of monthly instalment depends upon the loan amount, interest rate and tenure of the loan. On entering the details in the calculator, he examines the rough estimate of his total payments as a break-up of the Home loan repayment process.
Input details in the Calculator
Loan Amount : ₹21 lakhs (Required amount)
Interest Rate: 8.35%-9.05% p.a.
Tenure: 30 years(Required tenure)
Final Result displayed
Monthly Instalment: ₹15,924
Total Interest Amount :₹36,32,810
Total Amount(Principal+Interest) :₹ 57,32,810
Home Loan EMI Calculator Excel
Estimate your home loan EMI by using MS Excel. Use the function PMT in order to calculate the EMI. The following syntax is required for using the formula in EMI Calculator in MS Excel.
Syntax : PMT (rate, nper, pv)
The variables used in the above formula are :
rate – Rate of Interest on the loan
nper- Total number of payments for the home loan
pv- Present value/principal
HDFC Loan EMI Calculator- Essential Criterion
HDFC loan EMI works in accordance with the following criterion:
Loan Amount : The amount required to borrow for buying a house is called the loan amount. The borrowed amount is subject to the valuation of the property cost and repayment capacity of the applicant concerned. However, HDFC is eligible to avail 80% of the property cost as the loan. This is called principal amount of the loan and the interest rate applied on it. The final amount is realized after applying interest rate which gets apportioned across the loan intervals.
Interest Rate : The interest rate levied on the lending amount is known by the term interest rate. The home loan rates differ from one lender to another, so it is favourable to consider the interest rates before applying for home loans. The interest rates are of two types which are applicable on home loans- fixed or floating rate. The fixed portion of interest rate remains unaltered throughout the loan tenures and so will be the EMIs. However, in case of floating interest rate, the rates vary subject to the changes in base rate and hence EMI will fluctuate subsequently.
Tenure: The time period pre-determined in advance as a repayment towards home loan is known as tenure. Some of the loans are also applicable as per flexible loan tenure. The repayment period of long-term home loans consist of upto 20 years and may last until 30 years. The applicant, therefore, is required to fix the tenure as per own specifications but needs to acknowledge the fact that longer the tenure, thus interest rate will be more.
How to Get lowest Home Loan Rate?
Check your eligibility criteria on Wishfin portal in order to grab the lowest rate with HDFC bank at your nearest location.
Property Value- Examine whether your property is in an approved society, area or colony, there lies the possibility of obtaining a higher loan amount at the lower rate. In general, the maximum loan amount offered by lenders encompasses 70-90% of the property value.
Relationship with the Lender in Contact: Good deals are a part and parcel of your negotiation tactics that govern the basis of obtaining a fair loan amount at lower cost. In this manner, you can easily obtain a high loan amount and that too at competitive interest rate without any inconvenience.
Monthly Income : The monthly income plays a predominant role in deciding your worthiness towards availing home loan. If you have high earnings and so far you are fulfilling the eligibility criteria, the chances become high for you to obtain a higher home loan amount. Higher income is essential for you to obtain the higher amount whether you are a salaried class or self-employed professional.
Age : Age is an essential criterion to acknowledge the fact of ascertaining your home loan eligibility. If you are a home loan seeker at an early age, chances are higher for you to obtain a higher loan amount as against those who apply for a loan in their 40-50s age. It is therefore recommended to apply early for availing better chances on your home loan.
