HDFC Limited is a proud name in the HDFC Housing finance segment by offering loans at varied interest rates. The impact of rates is far-reaching, particularly in the case of a housing loan as its repayment spans for as long as 20-30 years. A difference in interest rate can thus bring a huge difference in overall repayment over time. Very recently, HDFC announced to hike the interest rate by up to 20 basis points across the loan amounts.
So, the interest is expected to go high and would have an impact on your repayment sojourn. The impact can be best illustrated via HDFC HDFC Housing loan EMI calculator. Let’s check out the function of the calculator.
How Would HDFC Housing Loan EMI Calculator Work to Your Advantage?
HDFC offers housing loans to both salaried and self-employed. The interest rate for women borrowers applying for up to ₹30 lakhs would be 8.70%-9.20% per annum. Male counterparts, on the other hand, would need to pay the same loan amount at 8.75%-9.25% p.a. Loans above ₹30 lakhs now come with an interest rate of 8.80%-9.30% and 8.85%-9.35% for female and male borrowers, respectively. Now, you need to use the rate in the EMI calculator to compute the installment applicably. Besides the amount of installment, you also get to see the total interest liability. You can see the calculator online to draw your repayment summary. So, it can be easily said that the HDFC housing loan interest rate influences the function of the calculator greatly.
HDFC Housing Loan Amortization Results Out Now
Checking out the amortization schedule is easy as it follows the results of the EMI calculator. Just below the latter, you find the schedule showing the repayment into both principal and interest portions year-by-year. At the same time, there’s the data of outstanding balance at the end of every year till the original loan tenure. With the schedule out, you can actually plan your prepayment which many do to get relieved from the massive debt burden. But prepayment benefits when there’s a substantial time left for the repayment to get over. If there are only a couple of years left, you better not prepay the loan as the savings of interest won’t be that big to build on further.
How Should You Prepay HDFC Housing Loan?
Sorry for not explaining the prepayment under the above heading. Actually, it’s a process by which a borrower pays off the entire outstanding before the tenure expires. The fact that there are no prepayment charges involved prompt borrowers to mull the option and save on the interest. So, if you apply for a loan now and get it disbursed to the account, you should start investing in a mutual fund, fixed deposit, public provident fund (PPF) and even recurring deposit to yield surplus money over time, helping you prepay the outstanding balance of the loan and save interest.
HDFC Housing Loan Application Form
The housing loan can be applied either online or offline. You can thus choose the mode of application as per your convenience. If you are someone online and not wanting to visit the branch, you can go to the website of HDFC and apply for a housing loan. The lender would then send executives to your residence and office to check the authenticity of the details submitted. And not only that, even the property verification would be made by a certified chartered panel. Based on the observations, a technical and legal report would be prepared by a team of experts. The lender would take a note of the report and set a value of the property. You can thus receive a loan at about 75%-90% of the property value.