A home loan is a solution for when you need to bridge the gap in your finances to help you buy the home of your dreams. When you are on the look out for a home, you will be forging your finances to suit the homes that you are scouting. It is also an important purchase because a home where you stay. You are not going to be shifting permanent homes very frequently. With the rising costs of residential properties, it is not easy to buy a home that frequently too.
An HDFC Home Loan EMI Calculator is a simple tool that is freely available. The purpose of is to help you provide an estimate about the EMI that you will be paying once your HDFC Home Loan gets approved. The EMI Calculator uses the following parameters to evaluate the payable EMI amount:
- Principal amount: The amount that you would be borrowing to purchase your home loan.
- Tenure: The period under which you will be repaying the home loan that you have purchased. The maximum period for which you can calculate & avail a home loan using HDFC Home Loan EMI Calculator is 30 years.
- Rate of interest: The rate of interest is the rate at which you will be charged the EMI for the Home loan. The HDFC Home Loan EMI Calculator includes average interest rates that they charge. These rates begin from 8.1% pa.
Here is how EMI calculation takes place via HDFC Home Loan EMI Calculator:
P x R x (1+R)^N / [(1+R)^N-1] & its representation is as follows:
P = Principal loan amount
N = Loan tenure in months
R = Monthly interest rate
The rate of interest is calculated on a monthly basis.
R = Annual Rate of interest/12/100
Here are 5 tips that will help you prepare your finances for when you avail an HDFC Home Loan using EMI Calculator:
- Always consider the amount that you will be paying as an interest & EMI separately from your day-to-day expenses. In order to protect your finances & the safety of your financial health, set aside a fund for a rainy day for both, day-to-day & your EMI expenses.
- Emergencies can spring out of nowhere. If you are not prepared then they may pour a hole in your finances. Therefore, set aside an emergency fund apart from the ones mentioned above.
- In our routine lives, we may be making certain expenses that are not relevant. They do not create any impact on our routine lives. If you can figure out these expenses, you can save a lot of funds.
- Read more about the terms & conditions that are included in the HDFC Home Loan applications. The concept of “Caveat Emptor” which means let the buyer beware is a must concept to know about.
Generate an estimated EMI amount using the HDFC Home Loan EMI calculator to prepare your finances in a smart & sensible manner.