HDFC Home Loan Calculator & Its Impact on Repayment

HDFC Limited is arguably the leader in home finance segment with a massive market share. It has been made possible due to its ability to read the market pulse and bring exciting home loan offers from time to time. It offers home loans for a variety of purposes such as buying, constructing, renovating or even extending a home. The interest rates are based on the quantum of finance applied, the gender and profession of an individual, etc. A home loan journey can be called fruitful only on having a seamless repayment experience. To ensure you don’t face any hassle in the repayment days, it’s important to use HDFC Home Loan Calculator before applying for a credit. Let’s check out the functionality of the calculator in this article.

How Would HDFC Home Loan Calculator Impact Your Repayment?

The repayment is made through the Equated Monthly Installments (EMIs) on a monthly basis. You can thus use HDFC Home Loan Calculator online to compute the estimated EMI and interest outflow over the course of a loan. All you need to do is to enter the loan amount, tenure and interest rate to compute the estimated figures of EMI and overall interest outgo.

The EMIs will involve a portion of both principal and interest repayment. In the initial years, the interest portion of the EMI will be on the heavier side compared to the principal. As the loan is a few years from running its lifespan, the principal portion would constitute more of the installments. You can check the amortization schedule, a part of the calculator, showing a year-on-year outflow of principal and interest. It also shows the outstanding loan balance at the end of every year.

What is HDFC Home Loan Interest Rate?

HDFC home loan rate ranges from 8.80%-9.55% per annum. Women applying for a loan of up to ₹30 lakhs would need to service the debt at 8.80%-9.30% p.a. For others, the rate of interest would be 8.85%-9.35%. Women applying for loans over 30 lakhs and up to 75 lakhs can be offered an interest rate of 8.95%-9.45%. Others need to service the same amount of loan at 9.00%-9.50%. Loans over 75 lakhs would be disbursed at 9.00%-9.50% and 9.05%-9.55% to women and male applicants, respectively.

An Overview on Loan Amount and Tenure

Loan amount of up to ₹30 lakhs is disbursed at about 90% of the property cost. While those above 30 lakhs and up to 75 lakhs are disbursed at 80% of the property cost. Anything above 75 lakhs is based on 75% of the property cost. You can be given a maximum of 30 years to repay the home loan. But choosing such a long tenure would mean a long debt cycle and massive repayment that you may not realize with small EMIs going off your pocket.

Yes, a long tenure leads to much shorter EMI but the massive interest repayment, which happens in such a situation, simply kills the joy. A relatively shorter tenure should be your call as that can help you adjust for the hike in the EMI amount while saving substantial chunks of interest to be paid over the years.