With 4,520 branches and 12,000 ATM's in 2,587 cities and towns, HDFC Bank is one of the largest private sector lenders in the country. The bank has acquired 2 other banks so far – Times Bank in 2000 and Centurion Bank of Punjab in 2008. HDFC Bank’s total income for the fiscal year 2015-16 was Rs. 70,973.2 crore and its deposits totalled Rs.5,46,424 crore, 21.2 percent higher than the previous year.
Various HDFC home loan products are available for all kinds of customers. The interest rates are competitive and repayments methods are flexible.
Before you apply for a loan, you need to be sure of the repayment capacity. Sometimes we underestimate the burden a home loan would place on us. You need to be aware of the equated monthly instalments (EMIs) you will be paying the bank, the amount you’ll be repaying as interest to the bank and the total amount you will owe to the bank during the loan period. Making an informed choice is always better than depending on the bank’s marketing personnel to confuse you.
EMI Calculators are made to solve this problem. You need to know the loan amount, interest rate, tenure and processing fees to use an EMI Calculator. The calculator shows you the approximate EMI you will be paying, as well as all the other payment details that can be obtained from the values you enter. This will help you understand whether you can afford a higher or lower EMI, whether you need to vary the tenure, whether you need a lower rate of interest, etc.
BankBazaar’s EMI Calculator is one of the best online calculators because it has the option to count the processing fees too. With BankBazaar’s EMI Calculator you can also see how making pre-payments will help you bring down your overall loan burden. Before using the EMI Calculator, you need to know HDFC Home Loan interest rates, fees and charges, and various HDFC Bank home loan products. All this can be found on the BankBazaar website.
The steps outlined below will make it easy for you to use and understand BankBazaar EMI Calculator:
Let us make a calculation to check the results.
Loan amount: Rs. 40 lakh
Tenure: 25 years
Interest rate: 9.45%
Processing Fee: 0.5%
Would you like to make pre-payments? No
Result: Your Monthly Loan EMI – Rs.34,809; Total Interest Due – Rs.64,42,682; Total Amount Payable – Rs.1,04,62,682
What will happen if you add pre-payments? Let us see.
Would you like to make pre-payments? Yes.
Pre-payment frequency: Once in a year
Pre-payment starts in: 48 months (4 years)
Pre-payment amount: Rs. 1,00,000
Pre-payment fee: NIL
Pre-payment applies to: Sum of all pre-payments
Result: Your Monthly Loan EMI – Rs.34,809; Total Interest Due – Rs.40,79,060; Total Amount Payable – Rs.80,99,060
So if you make partial pre-payments of Rs. 13 lakh in 21 year, the total amount payable to the bank is less by around Rs. 23.5 lakh. It also brings down your total loan tenure by around 8 years.
On the BankBazaar EMI Calculator, you can modify the interest rate, tenure and loan amount to ascertain how much loan you can afford to take at your rate of income.
|Year||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance|
Yes. The BankBazaar EMI Wizard is a common tool for all banks and loan types. It does not have any pre-determined values in it, and it makes calculations based on the values you enter into it.
Yes. HDFC has its own EMI calculator, personalized to each loan type. However, it does not factor in processing fees or pre-payments.
An EMI calculator estimates the amortization details of your loan based on the data you give it. The banks may have hidden charges and fluctuating interest rates that make difference to the repayment amount and EMI. An EMI Calculator is just a tool giving you an approximation of the payments you could be making, and not the final word in the matter.