Just as time never remains the same, the financial market also undergoes a series of change from time to time. After 4 years of non-stop rate easing, the year 2018 has begun on a rather disappointing note for the borrowers. Almost every lender including HDFC is raising interest rates.
The rate change impacts home loans the most as they are increasingly offered on a floating basis. Within a span of 2 months, HDFC Limited, the leading mortgage firm, raised its benchmark Retail Prime Lending Rate by 30 basis points, including the 10 bps hike it made a couple of days ago. All this and more only makes for an interesting reading of HDFC home loan EMI calculator, which would compute the repayment future for you to take a right call.
How Much Dependent HDFC Home Loan EMI Calculator is on the Interest Rate?
The interest rate impacts the function of the calculator greatly by telling you the EMI as well as the total quantum of interest payable towards a loan. Greater the interest rate would be, higher would be the amount of EMI and more the payment is likely towards the interest and vice-versa
HDFC home loan interest rates are based on gender and profession of an individual, besides the quantum of the loan one’s applying for.
Women applying for a loan of up to 30 lakhs would now need to pay the debt at 8.80%-9.30% per annum. Others must be ready to pay at a slightly higher rate of 8.85%-9.35% p.a. Loans between 30-75 lakhs are offered at 8.95%-9.45% and 9.00%-9.50% for female and male borrowers, respectively. Loans above 75 lakhs can be charged at 9.00%-9.50% (female) and 9.05%-9.55% (male).
You could clearly see the gap between the lowest and highest limit of interest rates applicable to different loan amounts. This is where you need to negotiate on to ensure the rates are lower and fitting to your budget. You can negotiate with HDFC based on the following factors –
- Solid Income
- Employment or business stability
- Existing relationship
- Sound repayment potential
If you are found good in these factors, no wonder the mortgage firm would say ‘YES’ to your call of getting the rates reduced.
Overall Function of HDFC Home Loan EMI Calculator
Apart from interest rates, the calculator would also want the loan amount and tenure to compute the EMI and interest. While the quantum of loan would impact the installment directly, the tenure would do so in an indirect manner. HDFC provides the loan for a maximum of 30 years. Yes, longer the tenure would be lesser remains the EMI. But, you better avoid choosing a long tenure as that would take out a lot of you in the form of interest.
A comparatively shorter tenure may lead to a greater installment amount but would reduce the quantum of interest substantially over the course of a loan. While using the calculator, you can even check HDFC home loan amortization to get a fair idea of the interest and principal repayment to be made year-on-year. Plus, you would get to know the outstanding loan balance at the end of every year. As the home loan runs long, you can mop up the savings in a planned manner to pay off the loan before it finishes originally.