The dream of having a home is still buoyant among the buyers who despite a plethora of finance schemes haven’t been able to experience the glory of living in their house. While some are offering limited finance, many charge interest at exorbitant rates, eluding a huge chunk of people from being called homeowners.
However, HDFC Limited, the parent company of the popular HDFC Bank and others, is rather a different one compared to the rest with its rich vein of home loan offers. You can check the feasibility by understanding the function of HDFC home loan EMI calculator.
How to Make Best Use of HDFC Home Loan EMI Calculator?
You can use the calculator to know the installments that are likely in your case. At the same time, you get an idea of the time for which you should service the debt. In addition, you get to know the time by which you can prepay the loan. So, it’s a great tool to have that can guide you in planning your home loan repayment journey. As it is available online, you can experiment with figures to know what’s best for your budget.
Firstly, you must know the pivots based on which the calculator functions. These pivots are loan amount, interest rate and tenure. The moment you enter these three variables, an indicative figure of EMI and interest outgo would be shown on the screen.
How Does HDFC Home Loan Interest Rate Impact EMI?
HDFC offers home loans to both salaried and self-employed at attractive rates of interest. The rates vary according to the loan amount and gender of an individual. While the rates for women are kept in the range of 8.50%-9.10%, the male borrowers would have 8.55%-9.15% per annum to service at.
Let’s get the interest rate based on both gender and loan amount. Women applying for a loan of up to ₹30 lakhs and above ₹30 lakhs can get rates of 8.50%-9.00% and 8.60%-9.10%, respectively. Male borrowers, on the other hand, would need to service a loan of up to ₹30 lakhs and above ₹30 lakhs at 8.55%-9.05% and 8.65%-9.15%, respectively.
The interest rate influences the EMI directly. So, any increase in rate will lead to a rise in the EMI by the same proportion. The interest rates, if you see in the case of HDFC, are reasonably lower to accommodate many home dreams.
How Should You Choose Your Home Loan Tenure?
A lot many tend to forget the importance of tenure as all the focus remains on getting the rates reduced. By not giving the required attention to tenure, many end up worsening their credit lifecycle. Particularly, in the case of a home loan, a tenure is as vital as an interest rate. Even though a maximum of 30 years can be granted to you to service a home loan, you must not opt for the entire tenure as the extent of interest payment can be much more with the same.
At the same time, you would find it hard to pay the EMI with a very short tenure. To ensure EMI payment remains within the reach and interest reduces significantly, it is indeed necessary to go for a relatively shorter tenure. Instead of 30 years, go for 25 years so that you can pay the additional EMI while keeping the interest in check.