Before taking a home loan from HDFC bank, it is essential to calculate the EMI or equated monthly instalments to get an exact idea about the amount to be repaid including principal and interest component. This can help in balancing your monthly expense schedule. In case you do not calculate your EMI beforehand, it can result in an imbalance of your monthly budget and you could lend in a debt trap.
Since a housing loan is generally a large amount, a borrower can repay it in Equated Monthly Instalments or EMIs. By using an online EMI calculator for a home loan, one can accurately estimate the EMIs (principal amount + interest) to be paid each month towards HDFC bank home loan repayment.
What are the benefits of using an EMI calculator?
It is always better to estimate the risk before taking it on through debt such as a home loan. Here are the benefits of knowing your debt obligation beforehand using an EMI calculator:
- Allows you to plan your finances in advance
- It tells you the principal and interest amount to be paid before you apply for a loan and you can have a fair idea of the expected monthly obligation
- It also allows you to check EMI for different loan providers across different interest rates so that you can select the best available option
- In case interest rates increase in the future, you can get an estimate of the possible increase in EMI outflow
- It also allows you to plan EMI outflow in case of any changes to the loan tenure
It is always safer to calculate your debt or EMI beforehand by using an online EMI calculator. Once you know the EMI amount, you can be sure of applying for the home loan instead of rushing the decision.