If you’re thinking of applying for a home loan, the most important thing you should know is how much you have to pay back every month. This will help you plan the rest of your monthly expenses accordingly. This can be done with the help of a home loan EMI calculator like the one you can find on BankBazaar.
To use BankBazaar’s Home Loan EMI Calculator all you need to do is provide details of your loan along with whether or not you plan to make any prepayments. Once you hit ‘Calculate’, the calculator will give you the EMI payable along with the amortisation table.
This table details out how your EMI is divided into paying the principal and servicing the interest.
The formula used for calculation of Home Loan EMI is mentioned below:
In this formula, P is the loan amount, r is the rate of interest and n is the tenure of the loan in months.
Depending on the type of home loan you are taking from DHFL (whether for land, construction, renovation, or a new home) the interest rate varies. Here are the interest rates charged for each type of loan as of March 2019:
The rate you are ultimately charged will depend on a number of factors which includes the loan amount.
Depending on the loan amount you take, you will be charged a processing fee. This fee also varies for salaried and self-employed individuals. Here’s a breakup of this fee:
For loans up to Rs.30 lakh, DHFL will provide up to 90% of the market value of the home you are looking to buy. Loans above this amount will be reviewed on a case-to-case basis. In general, DHFL offers loans above Rs.75 lakh as well.
The repayment tenure also depends on which home loan you end up taking. The maximum tenure for each loan is:
Let’s understand how a home loan EMI calculator helps you by using an example.
Let’s assume that you have decided to take a New Home Loan from DHFL for Rs.10 lakh. The loan tenure is 20 years, the interest rate is 9.75% p.a. and the processing fee is 1% of the loan amount (assuming that Rs.5,000 is 0.5% of the loan amount and the remaining 0.5% is for documentation charges and GST applicable).
You key in these values into BankBazaar’s Home Loan EMI Calculator and opt to not make any prepayments. The EMI for this loan is Rs.9,485.
The amortisation table for a period of 20 years from March 2019 to February 2039 will look as follows:
|Year||Total Amount Paid (Rs.)||Principal Paid (Rs.)||Interest Paid (Rs.)||Outstanding Amount (Rs.)|
While deciding on a home loan, the tenure you ultimately choose will go a long way in determining how much you pay as EMI each month. Loans with longer tenures mean that the EMI you end up paying each month is much lower than loans with shorter tenures.
This being said, because the loan is for a long period of time, the amount you end up paying as interest over the course of the loan is much higher for loans with long tenures than it is for shorter tenure loans. This also means that if you opt for a home loan with a short tenure, the amount you pay each month is quite high.
So, before you zero in on a tenure, use a home loan EMI calculator and see what the EMI amount is for varying tenures. Once you know how much you will need to put aside each month, you can choose a tenure that suits your finances the best.
1. Do all EMI calculators work the same way?
All EMIs are calculated in the same way primarily using the principal amount, tenure, and the interest rate. So, all calculators also work the same way. However, BankBazaar’s loan EMI calculator also helps you factor-in your prepayment plans. Do keep in mind that these tools work only for a fixed interest rate. If your property loan is subject to floating rates, your EMIs will differ. Check with your bank for more information on this.
2. Is the result displayed accurately?
While every EMI calculator works based on the given inputs, there may be a slight difference in the result due to the inclusion of other fees and charges by the lender.
3. What do I get from calculating my DHFL Home Loan EMI?
Calculating the EMI you need to pay when you take a housing loan from DHFL can help you in a number of ways, some of which include:
4. How do part payments or prepayments help in the long run?
When you infuse your loan account with additional payments, it reduces the outstanding principal amount, which in turn reduces the interest charges. This is because the interest is charged on a reducing balance method. This will help you clear the loan a lot quicker.
5. Will home loan EMIs change in case of prepayment?
DHFL allows you to prepay home loans that are associated with floating interest rates. When you pay a portion of your loan before the amount becomes due, the principal amount reduces. You can choose to either keep the loan tenure the same or reduce it. The former will help you repay the loan sooner and the latter will ensure that you pay a lower amount every month.
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