Table of Content
- What is a pre-EMI interest on a home loan?
- Interest Rate Range for the past quarter for advances granted to individual borrowers
- HDFC provides several modes through which home loan customers can pay their EMIs.
- Applying for a home loan - online vs offline
- Select your Preferred Language
- Housing Finance Companies Offer a Lot More Than Just Home Loans
This will ensure that the funds you have kept aside for your EMI payments are not impacted in case you face such a situation. Each EMI is made up of interest payable on your loan and part principal repayment. HDFC says any change in EMI needs to be updated in the customer’s account so that the Amortisation can happen with the right EMI.
The EMI calculator helps you arrive at the right home loan amount that best fits your monthly budget, by helping you decide the loan EMI and tenure most suitable to your financial position. Basis these three input values, the EMI calculator will compute the instalment you need to pay to the home loan provider each month. Some EMI calculators for home loan also provide a detailed breakup of the interest and principal amount you will be paying over the entire loan tenure.
What is a pre-EMI interest on a home loan?
Customers typically choose prepayment when they have more money. For your convenience, HDFC offers various modes for repayment of the home loan. You may either issue post-dated cheques or standing instructions to your banker to pay the installments through ECS from your Non-Resident Account / Non-Resident Account in India.
You are required to pay 10-25% of the total property cost as ‘own contribution depending upon the loan amount. 75 to 90% of the property cost is what can be availed as a housing loan. In case of construction, home improvement and home extension loans, 75 to 90% of the construction/improvement/extension estimate can be funded. HDFC’s EMI calculators give a fair understanding about the ratio of the principal amount to the interest due, based on the loan tenure and interest rates.
Interest Rate Range for the past quarter for advances granted to individual borrowers
This is a fixed amount you need to pay your lender each month till you complete repaying your home loan. You need to pay EMIs throughout the loan tenure till you have paid off your home loan. It’s advisable to limit your loan payment to a maximum of 40% of your monthly income. You must submit an online payment using internet banking or do what you normally do for EMIs. However, be careful to review the loan account statement next month and obtain confirmation of the same.
It will take a few days for the bank to send you the paperwork, so the NOC and the No Dues certificate will come after. You may easily prepay HDFC home loan online by using the customer portal. Analyse your cash requirements for short-term, medium-term, and long-term demands.
HDFC provides several modes through which home loan customers can pay their EMIs.
A HDFC home loan provides numerous benefits such as facility to apply online, quick loan processing, attractive interest rates, customized repayment options and simple &hassle-free documentation. This amount is paid during the period till the full disbursement of the loan. Your actual loan tenure — and EMI payments — begins once the Pre-EMI phase is over i.e. post the loan has been fully disbursed. How you time your monthly EMI payments plays an important role in your cash flows. If you are employed, your EMI should coincide with your salary date.If you are self-employed, make sure you have the necessary funds in your bank account to meet the EMI payment.
Subsequently, the repayment is accelerated proportionately with the assumed increase in your income. Loan amortization is the process of reducing the debt with regular payments over the loan period. A home loan amortization schedule is a table giving the details of the repayment amount, principal and interest component. HDFC says that it has over 200 offices, integrated into a central server.
Applying for a home loan - online vs offline
You must visit the bank branch and notify the bank if you wish to cancel the account. You can apply for a pre approved home loan which is an in-principal approval for a loan given on the basis of your income, creditworthiness and financial position. Generally, pre-approved loans are taken prior to property selection and are valid for a period of 6 months from the date of sanction of the loan . Up to 25% of the initial principal loan amount may be prepaid without incurring any fees after the first six months and for a maximum of 36 months. Prepayment fees of 2% will apply to any prepaid amount that exceeds 25% in any given fiscal year.
Customers can do any post-disbursement transaction from any office regardless of where the loan was sourced. Therefore, there is no need for customers to request for transfer of accounts to a local branch. These articles, the information therein and their other contents are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality.
An EMI calculator is useful in planning your cash flows much in advance, so that you make your home loan payments with ease whenever you avail a home loan. In other words, an EMI calculator is a useful tool for your financial planning and loan servicing needs. HDFC also offers a facility of a pre-approved home loan even before you have identified your dream home. A pre-approved home loan is an in-principal approval for a loan given on the basis of your income, creditworthiness and financial position.
2% charges will be levied if the prepaid amount grosses 25% of the opening principal amount each financial year. HDFC will determine your Home Loan Eligibility largely by your income and repayment capacity. Other important factors include your age, qualification, number of dependants, your spouse's income , assets & liabilities, savings history and the stability & continuity of occupation. With this option you get a longer repayment tenure of up to 30 years. This means an enhanced loan amount eligibility and smaller EMIs. Your financial plan should necessarily help you accumulate an emergency fund which is immensely useful in case of medical emergencies such as hospitalization, accident, etc.
Let’s say you have taken a loan of Rs. 25 lakh for a tenure of 20 years at 8.6% interest. HDFC allows customers to increase the EMI during the life of a loan and no cost is charged for this facility. HDFC says that under any of the methods of payment, the total EMI is required to be paid before the due date. In the case of post-dated cheques, there is an option either to change the old cheques completely or issue Post Dated Cheques only for the differential amount.
“Differential amounts for more than a month can be aggregated and paid through a single cheque in advance,” says HDFC.
No charges will be levied up to 25% of the opening principal amount each financial year. Transferring your outstanding home loan availed from another Bank / Financial Institution to HDFC is known as a balance transfer loan. With our experience of providing home finance for over 4 decades, we are able to understand the diverse needs of our customers and fulfill their dream of owning a home .
FLIP offers a customized solution to suit your repayment capacity which is likely to alter during the term of the loan. The loan is structured in such a way that the EMI is higher during the initial years and subsequently decreases in proportion to the income. SURF offers an option where the repayment schedule is linked to the expected growth in your income. You can avail a higher amount of loan and pay lower EMIs in the initial years.
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