Among banks that offer home loan to the people of India, HDFC is counted as a trusted one. Not only does it offer loans on transparent terms, it also goes the extra mile in making the process smooth for the customers. When you take a home loan to fund the purchase of your dream abode, one of the many things that confuse you is how to work out the EMIs and plan your budget. HDFC has come up with a solution for this in the form of HDFC EMI Calculator. Before understanding how this EMI calculator works, we should dwell upon the meaning of EMIs and its components.
What is Home Loan EMI?
Equated Monthly Instalment (EMI) is the amount that you will have to pay every month towards the repayment of your home loan. It consists of two components- Principal amount and interest on your loan. During the initial stages, the interest component in EMIs is higher and vice versa. Longer the tenure of your home loan, lower will be the EMI.
HDFC EMI Calculator
In order to to understand your home loan EMIs, it is important to use HDFC EMI calculator. It is an easy-to-use tool to get a clear view of how much you have to pay towards your home loan, how much is the interest outgo and the principal repayment. EMI calculator gives you the best approximation towards home loan EMIs and helps you plan your budget more efficiently. It gives you access to the entire amortization schedule so that you can strategize your home loan repayment.
How to use HDFC EMI Calculator?
You will find this tool on HDFC website. HDFC EMI Calculator is easy to use. Follow the given steps and find the EMI that you will have to pay-
Step 1- Fill the loan amount. Note that it is not the cost of property but the amount of loan that the bank is offering on that purchase. For example, if the property you are buying is worth Rs 1 Crore and the bank agrees to give you a loan equal to 80% of the property price, then the loan amount will be Rs 80 Lakhs.
Step 2- Enter the rate of interest that the bank is offering.
Step 3- Enter the loan tenure.
After you fill in these details, the EMI will show on the screen along with the amortization table. To get a clear understanding of your home loan EMI, you must resort to this table shown by HDFC EMI Calculator. It will show you the opening and closing balance of every year of the tenure along with the total amount that you will pay as interest and principal.
Benefits of using HDFC EMI Calculator
It becomes really difficult to estimate the EMI on your own. Any mistake in the calculation can mess up your budget as the amount is big. HDFC EMI Calculator can help you find out the EMI as per the details without any discrepancy. Some other benefits of EMI calculator are-
• If you are still pondering over how much EMI you can afford, HDFC EMI Calculator turns out to be the best way to find out. Fill in the details according to what you think you can afford. Change the numbers to find the right EMI for you.
• If you are comparing the rates offered by different lenders, EMI calculators can help you in choosing the right one.
• You can also choose the right tenure experimenting with different rates and amounts.
Other Tools offered by HDFC
Apart from HDFC EMI Calculator, the bank also offers other tools like eligibility calculator, length conversion calculator and affordability calculator which further assist you in choosing the right kind of home loan.
|