It is imperative to know your EMI before you take a home loan. This is to ensure that you make a wise choice of the kind of home loan you will receive and you do not face any financial problems later when you have to pay the EMI to the bank against the mortgage.

An EMI calculator provides a near accurate estimate of the amount you have to repay to the lender. DHFL Home Loans provide you with a convenient online DHFL home loan EMI calculator.

EMI and Home Loans

For the uninitiated, EMI is the abbreviation for Equated Monthly Instalment. This is a fixed sum that you have to repay to the bank against your loan. Instalments are the option to repay at intervals suitable to you (monthly/quarterly/annually) during the entire tenure (number of years) you have taken the loan for. You have to pay this amount to the bank on a fixed day of the month/quarter/year. If you delay in doing this, you will have to pay the penalty and to default can have more severe consequences. So, it is vital that you are aware of the EMI you have to pay against your loan before you apply for it.

EMIs consist of:

1. Principal amount: That is the principal sum that you borrow.
2. Interest payment: This is the sum charged by the lender on your outstanding loan amount for the entire tenure of your loan. It is a crucial source of income for the lender.

Finally, you can get an accurate estimate of your EMI, using the online EMI calculator.

DHFL home loan calculator is available at:

https://www.dhfl.com/home-loan-emi-calculator

Steps to calculate DHFL home loan

Calculate the EMI as follows:

1. Enter the sum of money you want to take a loan.
2. Enter your name and mobile.
3. Click calculate EMI button.
4. Read the terms and conditions and disclaimers carefully.

DHFL formula to calculate EMI

You may confirm the approximation provided by the calculator, with an EMI formula:

P*r* (1+r) ^n/([(1+r)^n]-1)

P = Loan amount.

R = Monthly interest rate. Current rate starts at 8.35%, which is linked to DHFL Prime Lending Rate (PLR).

(PLR is the benchmark interest rate used by lenders for loans to customers)

n = loan term in months.

DHFL Home Loan Eligibility

Lenders also have eligibility rules for home loans. Many factors determine many factors determine whether you are eligible for a home loan. You may also use an online DHFL Home Loan Eligibility Calculator to know your eligibility and about the relevant rules at:

https://www.dhfl.com/home-loan-eligibility-calculator

DHFL home loan interest rate

Some key factors will impact your EMI. The interest rate charged by the lender on your loan is one of them. Current DHFL interest rate on home loans starts at 8.35%. There is no instant DHFL home loan interest rate calculator on the DHFL website but to calculate the near accurate interest rate estimate of your loan you can visit:

https://www.dhfl.com/home-loans/interest-rates-and-charges

EMI dynamics

Other factors also impact your EMI:

1. EMI is higher if the loan you take is for a shorter tenure, e.g. ten years.
2. EMI is lesser if the loan you take is for a higher tenure, e.g. 20 years.
3. The EMI varies according to the interest rates charged by the lender. The more the interest rate, the higher the EMI.
4. EMI varies with changes in market interest rates and the reference/benchmark rates.

FAQs

1. What else does the EMI calculator provide other than an approximate idea of the instalments?

It also gives you a detailed idea of the repayment schedule of the loan you have taken.

1. What are the benefits of using DHFL EMI calculator before taking a loan?

It is wise to calculate your EMI before you take a home loan because:

• It is essential to know if your EMI is affordable for you. If you find it is more than you can afford, then you can opt to apply for a lower loan amount that is within your budget. That way you will not miss your EMI payment.
• According to the EMI amount, you may also be able to make a part pre-payment. This is when you prepay a part of the home loan, to the bank, whenever you have additional money with you in future.

1. Does DHFL allow part pre-payment?

Part pre-payment is not allowed before six months from the date of disbursement of the loan. After six months it is allowed.

1. Are there any charges for part prepayment?

The charges are as follows:

• Individual borrowers or co-borrowers: no fees.
• Borrower or co-borrower, not an individual: 2 per cent + relevant GST.
• DHFL Plot Loan/Easy Land/Construction Loan: 3 per cent + relevant GST, under specific other criteria. Read all details at https://www.dhfl.com/home-loans/interest-rates-and-charges

1. Will the applicant’s home loan EMI change if he/she does a part pre-payment?

Yes. A part pre-payment reduces the outstanding balance of principal amount on your home loan.  The EMI may also mitigate when the calculation of interest takes place on the principal.

1. What is the floating interest rate?

Floating rates determine the increase or decrease of home loan interest rates in the market. Usually, the interest rate for the loan is revised periodically based on the lender’s benchmark lending rate (like prime lending rate, base rate etc.) existing on the exact dates of the respective revisions.

1. What is a fixed interest rate?

Fixed Rates, on the other hand, remain unchanged on the home loan for a particular term of the loan, irrespective of any market dynamics.

1. How do floating and fixed interest rates impact EMI?

Floating rate home loans are usually cheaper than fixed interest rates. So, the type of interest you choose will impact your EMI.

1. Are there charges for late home loan EMI payment? What are the other costs?

Yes, there are late fees, it is 18% annually on the outstanding loan amount (EMI/Pre-EMI). For other charges refer to https://www.dhfl.com/home-loans/interest-rates-and-charges

1. Are there any other charges that can impact the EMI?

Yes, it is also impacted by Goods and Services Tax (GST) at a rate of 18% upon All Financial Services Effective July 1, 2017, in India.

With the DHFL EMI calculator at hand, your EMI calculation on home loans will be more reliable. It will finally help you make a wise home loan decision. However, please note that all rates, policies, etc. discussed in this article are subject to changes. So, it is best to check with the lender/bank for the latest updates on the date you visit them to take the loan.