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HDFC Home Loan

home is one of the first things people think of buying, in their youth – how they want it to look like, what things they will have in the house, etc. But as they get older, they realize that to make this dream of theirs come true they need money which is not easy to save with the current economy and inflation crisis. Is to help this goal of people, to buy their dream homes that HDFC Ltd. offers home loan.

A home loan is often a very large amount that you borrow from the bank, for the purpose of buying a home. The EMI also tends to be high and therefore you need to decide beforehand how much an amount of loan you would want, what interest rate you are comfortable paying, and also the tenure of the loan.

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Home Loan from HDFC Ltd.

HDFC Ltd. offers seamless and customized home loans to individuals for interest rates starting at just 7.55%, which you can repay over the tenure of up to 30 years.

Home Loan Interest Rates

Interest Rates for Home Loans by HDFC Ltd. vary depending on a few factors like the amount, the tenure, etc. The interest rates for an HDFC Ltd. Home Loans start at 7.55% p.a. (special home loan rate). Given below is a table consisting of the various home loan schemes offered by HDFC Ltd.:

Schemes of HDFC Housing Loan

Interest Rates

HDFC HOME LOAN INTEREST RATES ARE SUBJECT TO PERIODIC CHANGE

HDFC Home Loan Schemes

HDFC Ltd. offers a plethora of home loan schemes and plans for both salaried and self-employed individuals. Given below is a list consisting details of all the schemes which can be availed by the customers

HDFC Housing Loan

HDFC Plot Loan

HDFC Rural Housing Loan

HDFC Reach Home Loan

HDFC Home Improvement Loan

HDFC Home Extension Loan

HDFC Top Up Loans

HDFC Balance Transfer Loans

HDFC NRI Home Loans

10.

HDFC PMAY

Factors Affecting EMI of Home Loan

Home Loan EMI can be calculated using an online Housing Loan Calculator which takes into account many factors like loan amount, interest rate, and the tenure or duration for which you are planning to avail the loan.

Loan amount

– This is the amount you want to borrow to fulfill your home needs. ‭‭The

home loan amount mainly depends on the value of the property for which the loan is availed.

Fincity offers Home Loan for amounts as low as Rs. 30 lakhs to as high as Rs. 5 Crores.

Loan Tenure

– Loan tenure is the duration over which a Home Loan is repaid. In practice,

a shorter tenure results in higher EMIs but helps you save on the total interest payout of the loan. The longest loan tenure available across banks and NBFCs in India for buying a home on a loan is around 30 years, subject to the borrower’s current age and retirement age.

Interest Rate

– The Rate of Interest is the interest charged on the borrowed loan amount

and is one of the components of monthly EMI along with principal repayment.

Home Loan Amortization Calculation

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that make up each monthly payment until the loan is paid off at the end of its tenure.

The Home Loan’s monthly EMI will be equal, in a schedule of amortization, but the component of the EMI, which consists of a principal payment and also the interest payment, will not remain the same every month, meaning it keeps on changing.

The EMI schedule of loan for an amount of Rs.20 lakhs and for a tenure of 30 years is explained below in the table.

Year

Interest Paid During each Year

Principal Repaid During Each Year

Principal Outstanding

Total Amount Paid During Each Year (Interest + Principal)

Formula for EMI Calculation

Generally, the EMI for a Home Loan is calculated using the given formula:

E = P * r * (1+r) ^ n / ([(1 + r) ^ n] – 1)

In the formula mentioned above,

E = Equated Installment

This is the total obligations required to pay per month

P = Amount of Loan

This can be anywhere between Rs.15,00,000 to Rs.5,00,00,000

r = Rate of Interest

This means the interest rate per month. For Axis Bank, this ranges from 6.9% to 8.30%

n = tenure in months

Usually, the tenure for a home loan ranges from 15 years to 30 years.

For Axis Bank Home Loans, the tenure ranges from 60 months all the way up to 360 months or 30 years.

Home Loan EMI Calculator and its Benefits

An EMI or Equated Monthly Instalment is a fixed amount that a borrower must pay to the lender every month till the tenure of their loan ends.

Calculating the EMI and its components can be a tiring and not-so-efficient task for most first-time financers. A home loan EMI calculator can easily do these complex calculations in seconds, and save you from the trouble of doing them manually.

It gives you an accurate approximation, which is crucial for financial planning. There is almost no possibility of any inaccuracies or ambiguity.

The procedure for calculating EMI for each type of loan is different. Therefore, home loan EMI calculation is different from personal loan EMI. It is recommended you use only specific EMI Calculators for specific types of EMI.

The online calculator is also free for unlimited use. You can check the EMI for various amounts of loan amounts thus determining which amount suits your financial situation.

How to Use the HDFC Home Loan EMI Calculator by Fincity?

You can calculate your home loan EMI almost instantly using the Home Loan Calculator. It is precise and easy to use for anyone. This calculator for Home Loan EMI might require just a few key home loan details from the user to display results.

Here’s an easy guide on how to use the home loan EMI calculator:

Step 1:

Input the loan amount you wish to borrow.

Step 2:

Input the applicable interest rate for the home loan.

Step 3:

Input the tenure over which you will be able to repay your home loan.

As soon as you complete the above steps, your home loan EMI will be displayed along with other details such as the total amount payable and also the total interest payable.

General Documents Required for Home Loan ID PROOF

ID PROOF

Self Employed

Salaried

Income Proof

Salaried

Additionally

Home Loan Eligibility Criteria

The eligibility criteria for a Home Loan vary from one profession type to another

Salaried Individuals

Employees of permanent service in the Government or reputed private sector companies

Applicants should be of the age of 24 years during application and around 60 years at the time of maturity

Professionals

Applicable to SEPs like doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretaries, and management consultants only

Applicants should be of the age of 24 years during application and around 60 years at the time of maturity

Self Employed Individuals

Any individual that files income tax returns can apply

Applicants should be of the age of 24 years during application and around 60 years at the time of maturity

Home Loan Fees and Additional Charges

Depending on the loan type you are applying for, a few charges may be levied. They are mentioned below:

Processing fees:

This is a one-time fee that is to be paid to the home loan provider after the loan application has been approved. The processing charge is dependent on the bank and the loan scheme you are applying for, the processing charge thus is a variable metric. This fee is non-refundable.

Prepayment charges:

This is the fee or the penalty you will have to pay the lender, should you plan to repay your home loan before the completion of the tenure of the loan.

Conversion fees:

Some banks might also charge a small conversion fee if and when you decide to switch to a different loan scheme or even a different loan provider in order to decrease the interest rate associated with your current scheme.

Cheque dishonor charges:

This type of fee is levied when the loan provider, like the Bank or NBFC, is provided that a cheque issued by the borrower is found to be dishonored due to reasons such as insufficient funds in the borrower’s account.

Home insurance:

One of the best ways to protect the home is to insure it. The premium of this insurance should be paid directly to the concerned company during the insurance term to make sure that the insurance policy is running during the home loan tenure.

Default charges:

Loan providers also charge a penalty on delayed or missed repayments i.e., if you do not make your Equated Monthly Instalments (EMIs) or Pre-EMIs on time. But these types of defaulting charges vary from one bank to another.

Incidental charges:

These charges cover the expenses and costs incurred by the bank to recover dues from a borrower who has failed to make his monthly installments on time.

Statutory/regulatory charges:

The fee might include all the expenses associated with the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), Memorandum of Entry and Deposit, and also stamp duty. You can visit CERSAI’s official website to know more about these charges.

Photocopy of documents:

The fee is paid to the bank if you need a photocopy of your home loan documents for any personal needs.

Change in loan term:

Some banks also charge a nominal fee if you think of changing the tenure of your loan.

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HDFC Ltd. Home Loans