HDFC Home Loan Calculator

What is the HDFC Home Loan Calculator?

The HDFC Bank home loan calculator is an online tool that helps you estimate your monthly EMI payments in advance, which is useful for planning your finances.

Your EMI amount depends on factors like the loan amount, monthly interest rate, and loan tenure. Since a home loan is a long-term commitment, it's important to stay aware of your EMI payments to manage your finances smoothly.

The HDFC Bank home loan EMI calculator is straightforward and free to use. To use the calculator, simply enter the loan amount you intend to borrow, the annual interest rate, and the loan tenure. It then shows you your monthly instalments, repayment details, and the remaining balance for each year of the loan.

What is the HDFC Home Loan Interest Rate?

HDFC Home Loan interest rates typically range from 8.60% to 9.50% per annum.

Because the rates can change, getting a personalised quote from HDFC is always a good idea. Their representatives can review your information and give you a specific interest rate based on your eligibility.

Types of HDFC Home Loans

1. Loan for Purchasing a New Home

This loan is meant for individuals who are looking to buy a new home. Here's what you'll need to qualify:

• Be between 18 and 65 years old.
• Have at least 2 years of employment (if you're salaried).
• Have at least 5 years of employment (if you're self-employed).
• Maintain a credit score of 750 or higher.

2. Plot Loans

Plot loans can help finance the purchase of land you plan to build a house on. These loans are available for both salaried professionals and self-employed individuals, typically between the ages of 18 and 65.

3. Rural Housing Loans

Rural Housing Loans offer financial assistance to individuals looking to purchase a home in rural or even urban areas. These loans are specifically designed for those working in agriculture, such as farmers, planters, and horticulturists, as well as dairy producers. The program is also open to salaried employees and self-employed individuals who wish to buy property in their village of residence. To be eligible, applicants must be between 21 and 65 years old.

4. Home Improvement Loans

These loans can help you pay for upgrades and repairs to your home. They're typically available to people between the ages of 18 and 65.

5. Home Extension Loans

This loan option helps finance the construction of new rooms or expanding your existing home. It's available for both salaried professionals and self-employed individuals between the ages of 18 and 65.

6. Top Up Loan

This loan option is available for existing customers with a Home Loan, Home Improvement Loan, or Home Extension Loan. You can apply for a Top-Up Loan after 12 months from the final payment received on your existing home loan. To be eligible, you must be between 21 and 65 years old.

Features of HDFC Home Loan

1. Financing for Various Property Types: HDFC offers home loans for a variety of properties, including flats, row houses, bungalows from approved developers, and existing properties in housing societies or co-operatives.

2. Construction Loans: They also provide loans for constructing a home on your own freehold/leasehold plot or a plot allotted by a development authority.

3. Guidance for Homebuyers: HDFC can connect you with experts for legal and technical advice to assist you in making informed decisions about buying a home.

4. Convenient Loan Servicing: Their extensive network of branches allows you to access and manage your home loan conveniently throughout India.

5. Special Program for Indian Army Personnel: HDFC has a partnership with AGIF to offer special home loan options for those employed in the Indian Army.

How to Use HDFC Bank Home Loan Interest Rate EMI Calculator?

For your convenience, we, at Jupiter have created a unique Home Loan Interest Rate EMI Calculator that allows you to figure out your EMI across multiple banks and lenders. Simply, scroll to the top of the page to access our Home Loan Interest Rate EMI Calculator and start entering your details as per the steps below. Once you’re done, you will automatically get your EMI along with other important parameters.

Step 1: Enter Your Loan Details

The calculator requires you to fill in the following information:

• Loan Amount: Specify the amount you wish to borrow for your home purchase.
• Tenure: Choose the repayment period that aligns with your financial plan, typically ranging from 5 to 30 years for HDFC home loans.
• Interest Rate: Input the estimated interest rate based on your research or HDFC Bank’s current interest rate offerings. Adjust this field to explore different potential rates.

Step 2: Calculate Your EMI

After entering all the details, the calculator will display your estimated monthly EMI, which is the fixed amount you’ll pay each month over the loan tenure.

Step 3: Analyze and Adjust

Adjust loan amounts, interest rates, and tenures to find the best combination for your financial situation. This helps you compare various loan options and make informed decisions before finalizing your home loan application.

How to Manually Calculate HDFC Home Loan EMI?

For those who prefer a hands-on approach, you can calculate your EMI using the following formula:

The EMI calculation is based on a standard mathematical formula:

Where:

• PPP is the principal loan amount
• r is the monthly interest rate (annual interest rate divided by 12 and then by 100)
• n is the loan tenure in months (loan tenure in years multiplied by 12)

Explanation with an Example Let’s consider an example to illustrate the calculation:

• Loan Amount (P): ₹60,00,000
• Annual Interest Rate: 8.75%
• Loan Tenure: 25 years

Step 1: Convert the annual interest rate to a monthly rate:

Step 2: Convert the loan tenure to months:

n = 25 × 12 = 300

Step 3: Plug these values into the formula:

Step 4: Calculate the EMI:

So, the monthly EMI for a loan amount of ₹60,00,000 at an 8.75% annual interest rate over 20 years would be approximately ₹49,329.

Advantages of using HDFC Home Loan EMI Calculator

1. Quick and Accurate Calculations: The HDFC EMI calculator offers instant and precise results. With just a few clicks, you can easily see your monthly EMI based on the loan amount, interest rate, and loan tenure you select.

2. User-Friendly Interface: Designed for ease of use, the HDFC EMI calculator requires no financial expertise. Simply enter your loan details, and the calculator will provide clear and understandable information.

3. Financial Planning Made Easy: This powerful tool helps with financial planning by estimating your monthly EMI. You can see how it fits into your budget and adjust loan parameters to make informed decisions about the loan amount and repayment terms that work best for you.

4. Time-Saving: The HDFC EMI calculator saves you time by eliminating the need for manual calculations or lengthy consultations. In seconds, you’ll have the information you need to confidently proceed with your home loan application.

5. Budgeting Like a Pro: The EMI calculator helps you set a realistic budget for your home loan. By knowing your estimated monthly payment, you can incorporate it into your overall financial plan, ensuring your dream home is affordable.

6. Comparison Power: HDFC's EMI calculator also allows you to compare different loan offers from the bank. Adjust loan parameters to see how changes in interest rate or loan tenure affect your EMI, helping you choose the best loan option for your needs.

7. Amortisation Schedule: The calculator provides an amortisation schedule, breaking down your monthly EMI into principal and interest portions. This transparency lets you track your loan progress and see how much of your payment goes towards reducing the loan amount.

8. Accessibility at Your Fingertips: Available online 24/7, the HDFC EMI calculator can be used from anywhere at any time, allowing you to explore different loan scenarios at your convenience.

9. Free to Use: The HDFC EMI calculator is completely free, with no hidden fees or charges, making it an accessible tool for anyone planning their homeownership journey.

How to Apply for HDFC Home Loan

The process of applying for a home loan with HDFC Bank can be broken down into a few simple steps. Here's a breakdown of what you can expect:

1. Filling the Application Form

The first step is to complete a loan application form. This form will ask for basic information like your name, address, contact details, education, and employment type (salaried or self-employed). You'll also need to provide details about your income.

2. Submitting Documents

Once you've filled out the form, you'll need to submit some documents to verify your information. These documents typically include:

• Proof of identity (PAN card, Aadhar card, Voter ID, or Driving license)
• Proof of address (utility bills)
• Recent salary slips (3 months for salaried individuals)
• Proof of employment
• Bank statements for the last 6 months
• Form 16 (for salaried individuals)

Self-employed applicants will need to provide additional documents, such as income tax returns for the past 2 years and other income proofs.

3. Processing and Verification

After submitting your application and documents, the bank will begin processing your request. This includes verifying all the information you provided. A bank representative may contact your workplace or residence for verification purposes. The bank will also check your credit score to assess your creditworthiness as a borrower. Maintaining a good credit history is important for a smooth application process.

4. Loan Sanction Letter

If everything looks good, the bank will send you a sanction letter if your application is approved. This letter serves as confirmation that the bank has agreed to your loan request. The letter will detail important information about the loan, such as:

• The approved loan amount
• The offered interest rate (fixed or variable)
• Loan repayment period
• Repayment terms and conditions

Carefully review the sanction letter before signing and returning it to the bank. The loan process cannot move forward until the bank receives your signed copy.

5. Secure Payment Fee

After you approve the loan agreement, there's a one-time fee called a secure payment fee. The bank might ask for this fee upfront, either before or after your loan is approved.

6. Legal and Technical Checks

Before disbursing the loan amount, the bank will conduct legal and technical checks on the property you're applying the loan for. This ensures clear ownership rights and verifies the information provided. The bank will also evaluate the property's value, considering factors like its status (under construction or resale), construction stage (if applicable), age, and maintenance condition. They will also check for any previous mortgages on the property (in case of resale).

7. Loan Disbursal

Upon successful completion of these checks, the bank will grant final approval for your home loan. You'll receive a final agreement letter and, once the loan is disbursed, a welcome kit and a detailed schedule outlining your monthly loan payments (EMIs).

Eligibility Criteria for HDFC Home Loan

General Requirements:

• Age: 21 to 65 years (both salaried and self-employed)
• Maximum Loan Term: 30 years
• Positive credit history with a credit score of 750 or above
• Existing financial obligations will be considered (e.g., car loans, credit card debt)

Additional Requirements:

• Salaried Individuals: Minimum monthly salary of ₹10,000 and minimum employment of 2 years.
• Self-Employed Individuals: Minimum business income of ₹2 lac p.a. and minimum employment of 5 years.

Frequently Asked Questions

Q1: Can I switch from a floating rate of interest to a fixed rate of interest in my HDFC Home Loan?

A: HDFC may offer balance transfer options to switch from a floating to a fixed interest rate. Contact HDFC to discuss your specific loan and eligibility for such programs.

Q2: What is the Loan-To-Value (LTV) ratio for HDFC home loans?

A: The LTV depends on the loan amount. Generally, it's:

• 90% for loans less than Rs. 30 lakhs.
• 80% for loans between Rs. 30 lakhs and Rs. 75 lakhs.
• 75% for loans above Rs. 75 lakhs.

Q3: When do EMI repayments for HDFC home loans begin?

A: EMI repayments typically start one month after the loan is disbursed.

Q4: What factors determine the tenure of my HDFC home loan?

A: Your age, income, loan amount, creditworthiness, and desired EMI amount all influence the maximum loan tenure offered by HDFC.

Q5: What is the maximum tenure for an HDFC home loan?

A: The maximum tenure for HDFC home loans generally ranges from 15 to 30 years, depending on your eligibility.

Q6: Is the HDFC Home Loan Calculator accurate?

A: The HDFC Home Loan Calculator provides an estimate. Actual interest rates and EMIs may vary based on your specific profile and final loan approval terms.

Q7: How can I reduce my EMI for my HDFC Bank Home Loan?

A: Consider increasing your down payment to lower the loan amount. You can also explore extending the loan tenure (if eligible) to bring down the monthly EMI.

Q8: Can I add family members as co-guarantors for my HDFC Home Loan?

A: Yes, including a co-applicant with strong creditworthiness can improve your eligibility or potentially allow for a better interest rate. However, it's best to contact HDFC directly for personalised guidance on your loan and situation.

Q9: What is the meaning of 'Own Contribution' in HDFC Home Loan?

A: Own contribution is the down payment you make upfront, which is a percentage of the property value. HDFC offers home loans up to a certain LTV, so you'll need to cover the remaining cost with your own contribution.

Q10: When does repayment of the principal amount for HDFC Bank Home Loan begin?

A: Your EMI payments go towards both the principal amount (loan itself) and the interest. The principal amount reduces with each EMI payment over the loan tenure.

Q11: What is the 30% EMI rule?

A: This is a general guideline suggesting your total EMI obligations (including your home loan EMI) shouldn't exceed 30% of your gross monthly income.

Q12: Can we prepay more than the EMI amount on a HDFC Bank Home Loan?

A: Yes, HDFC typically allows you to make full or partial prepayments on your home loan, which can help you save on interest and pay off the loan faster.