Why is HDFC Home Loan Calculator So Important to Look at?

HDFC Limited is a premier mortgage finance company offering home loans to both salaried and self-employed individuals. The loan acts as a catalyst for many wanting to purchase a home at their desired location. Be it the metros or 3-tier cities, the noted housing finance company offers you the loan to buy a house of your choice. But the loan has several aspects that you must understand before making an application. A proper understanding would comfort you by the time the loan repayment ticks off. So, what are those aspects and how can you understand the same? The aspects would be how much loan you can bag and how much you would pay in total. All that has an answer hidden in the power of HDFC Home Loan Calculator.

Dimensions of HDFC Home Loan Calculator

The calculator is basically of three types - eligibility calculator, EMI calculator and amortization calculator. All three have different operational dynamics and so, need a separate explanation.

HDFC Home Loan Eligibility Calculator

The eligibility calculator tells the amount of loan you would receive. The calculator, which is available online, computes the estimated loan amount based on your earnings, the workplace you are at, the property value, etc. The moment you know the loan amount, you can figure out the money that you have to pay to the seller of the property. At the same time, you can also know the money that would go as a processing fee. You can thus arrange the amount beyond the loan quantum to be able to buy a home with ease.

HDFC Home Loan EMI Calculator

Perhaps the most vital of the three calculators, the home loan EMI calculator shows the repayment you make to HDFC over the course of a loan. The calculator helps you compute the EMI based on the loan amount, interest rate and tenure. Both loan amount and interest offer similar analogies with the EMI and interest, except tenure. Greater  loan amount and a higher rate of interest would increase the Equated Monthly Installment (EMI) and overall interest outgo in comparison to lesser loan at a lower rate. A longer tenure would lead to lesser EMI but a higher interest in comparison to a shorter tenure that leads to an increased EMI and reduced interest outgo overall. If you check this calculator in advance, you can adjust your day-to-day routine by the time you start paying the loan.

HDFC Home Loan Amortization Calculator

It’s actually an addition of the EMI calculator. When the results of the EMI calculator flash on the screen, you also get to see the break-up of principal and interest portion of the EMI on a yearly or monthly basis. Apart from that, you can also see the outstanding loan balance on a periodical basis till the loan closes. If you see the amortization results carefully, you can decide by the time you can pay off the loan and get relieved of the interest burden. Paying off the loan before the scheduled time would require an accumulation of savings over the years.

Fill HDFC Home Loan Application Form

Now that you know the function of HDFC Home Loan Calculator, you can think of applying for a loan. You can apply either online or offline depending on your comfort. In either of the application modes, you need to fill your personal and professional details correctly before submitting the application. The application form will have to be supported with the submission of documents that can authenticate your identity, address, income and the property you want to buy. Once the loan application is approved, an expert panel will pay a visit to the property in question and prepare a legal and technical report, which would mostly dictate the loan HDFC can offer you.