How Do I Calculate The EMI On a Home Loan From HDFC?
A home loan is a long-term investment and it is important to understand the monthly instalments. HDFC Home loan can be paid in a few ways. The most common one being by instalment or EMIs. EMIs are made up of two components – interest rate and tenure – this means that an EMI will vary from one individual to another depending on their tenure and the interest rates they have been quoted for.
HDFC Home Loan EMI Calculator
An EMI Calculator is a software that helps you calculate your EMI. It can be a standalone application or be part of an online banking portal.
An EMI Calculator takes the following inputs:
Principle Amount: The total amount borrowed from the bank, usually given as a lump sum amount.
Interest Rate: The interest rate at which the loan is taken, usually expressed as an annual percent and given as a decimal number (e.g., 10% = 0.10). This number is the most important input for calculating your EMI and should be chosen carefully depending on how long you want to take to repay the loan and how much money you want to pay towards interest each month.
Term: The term of the loan (in months), after which repayment starts (on the
The monthly EMI on a home loan from HDFC can also be calculated using the formula that depends on your down payment amount, the interest rate, and the tenure of the loan.
The monthly EMI is calculated as follows:
EMI = Down Payment x Interest Rate x Number of Months / 12
This is a simplified calculation for illustrative purposes only. This should not be used to calculate your EMI without consulting HDFC for official rates.
Benefits of calculating home loan emi
HDFC home loan emi calculator is a very tedious task which consumes a lot of time. It is also hard to calculate emi for loans at different interest rates. If you use an online calculator then it becomes even more difficult to figure out the right amount because the numbers are truncated.
This becomes even more important when you have to take multiple loans at different rates, which are not co-related. This is because the amount of money you have to pay at different intervals will be different for each loan taken on its own.
Luckily, there are some websites that provide an EMI calculator where you can enter your monthly income and other personal details and it will do all this work for you .
How to reduce home loan EMI & interest rate
There are many ways to reduce the rate of interest on a home loan. But interest rates are determined by a number of factors, and the only way to be certain is to compare your options.
There are many ways to reduce the interest rate on a home loan, but there is no guaranteed way to know which option is best for you as this depends on your financial situation and other factors such as your credit score.
Read Also: What are the eligibility requirements for a personal loan from HDFC?
