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anvisharma commented 1 year ago

HDFC Limited is one of the frontrunners in India’s home finance space by providing customized loans to buy, construct, repair, renovate or extend a flat or home. Giving it to both salaried and self-employed, The housing finance firm ensures the size of its customer base grows substantially over time.


The interest rate is one of the main considerations while applying for a home loan. A lot many, though, search by HDFC Bank Home Loan Interest Rate. Let me tell you that home finance segment is of HDFC Limited only and not HDFC Bank, which only sources home loans for the former. So, come and stay glued to the article that’s ready to disclose the details of HDFC Home Loan.


A Brief Detail on Purposes for Which HDFC Home Loan is Granted


The housing finance company can disburse a home loan to purchase a flat, house, bungalow from private developers engaged in approved projects.


HDFC Home Loan Interest Rate


HDFC Home Loan starts from 8.40% and goes up to 9.05% per annum. The interest rates are also charged on the basis of the loan amount and the gender of an individual. Women can avail a loan of up to ₹30 lakhs at 8.40%-8.90% interest rate. Others, however, need to pay at 8.45%-8.95% for the same quantum of finance. With the loan amount going past ₹30 lakhs, the rate of interest applied would range from 8.50%-9.00% and 8.55%-9.05% for women and others, respectively.


HDFC Home Loan Calculator


Now that you know the interest rate, you can plan your home loan journey better. You must have an idea of the EMI in advance so as to know the adjustments needed to be made for a smooth repayment that can lengthen up to 30 years. Yes, the bank gives you a maximum of 30 years to repay the debt. But, will that be advisable in the context of a happy repayment experience? The most definite answer would be a ‘No’. It’s because the extent of interest burden rises massively even though the EMI remains lower. With a shorter tenure, the EMI would rise but the interest liability reduces considerably. The home loan EMI calculator will only testify the theory explained above.


For example, you and Nitish, your friend, are applying for a home loan worth ₹50 lakhs from HDFC. The interest rate offered to both of you is 8.60% per annum. While you seek a 30-year loan, Nitish wants it for 25 years. Well, you would pay an EMI of ₹38,801 and interest of ₹89,68,211 over a period of 30 years. On the other hand, Nitish would have to pay the EMI and interest of ₹40,599 and ₹71,79,657 over 25 years. You can clearly see Nitish is winning on the interest part by reducing it by ₹17,88,554 (89,68,211-71,79,657). He may have to pay an EMI, which is ₹1,798 higher compared to you. But the amount of interest to be saved by him with a shorter tenure is substantial.


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