DHFL or Dewan Housing Finance Corporation stands as one of India’s top 50 largest financial organisations. It started in 1984 to provide financial assistance to middle and lower-income groups in India. The organisation has branches in most cities and provides assistance to urban and semi-urban areas of India. If the Indian market is considered, the cost of building or buying your own home is very high compared to the average salaries that people earn. A few can pay the full amount, but many people make their dream home possible through loans. This guide enables borrowers to understand their financial capabilities before choosing a housing loan. Using the DHFL home loan calculator, you know the affordability based on your loan tenure, interest rate, and financial strength.
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Home loans come with an extended period for loan repayment, and the total payable amount and the interest factor increases the impact on the monthly EMI. Borrowers need to be cautious before choosing an EMI scheme. Sometimes these calculations are challenging for people who aren’t fully aware of the mathematics behind it. For such people, the DHFL home loan EMI calculator helps get a fairly accurate idea of how the loan and interest payments will be broken into multiple instalments.
DHFL Home Loan Details – Overview, Tenure, Eligibility and Repayment Process
DHFL offers home buyers affordable loan schemes, DHFL home loan interest rate starts at 10.5% p.a. The loans can be taken over extended tenures up to 25 years. You could avail up to 90 percent of your property’s value up to 30 lakhs. There is a processing fee involved; for Salaried, self-employed professionals, the fee is 0.5 percent of the loan amount and GST, while the rest is 1 percent, and the GST is added on. The applicants need to enter the loan amount repayment tenure. The calculator generates the EMI amount and showcases the result instantly! The EMI is calculated based on a monthly reducing balance and the upper limit of monthly EMI also depends on a monthly fixed income. You can also use the DHFL home loan eligibility calculator to understand the maximum EMI amount that you can afford with your monthly income.
Getting a DHFL loan is very easy and could be availed by visiting their website and filling in the details.
- Existing customers can access loans based on their salary and credit score.
- Existing customers can access loans based on their salary and credit score.
- Existing customers can access loans based on their salary and credit score.
- Existing customers can access loans based on their salary and credit score.
- Existing customers can access loans based on their salary and credit score.
- Existing customers can access loans based on their salary and credit score.
- Existing customers can access loans based on their salary and credit score.
- Existing customers can access loans based on their salary and credit score.
Important Factors That Determine Home Loan EMI
- The interest rates are crucial in determining the home loan EMIs. The nominal interest rates keep the monthly EMI low. Individuals choose an attractive DHFL bank housing loan interest rate for loan repayment.
- If the loan amount is high in value, the repayment tenure may increase, or the borrower will incur a higher EMI. So, loan applicants should choose depending on their financial status and repayment capacity.
- Borrowers prefer long repayment tenure to keep the EMI within the affordable range, But the total interest charge may increase.
How to Use the DHFL Home Loan Calculator
An EMI calculator is a tool that enables you to calculate the amount to be repaid every month based on your loan amount. Using the tool will give an idea about the monthly payments towards loans. The DHFL EMI calculator has three sliders. In the first one, you should add the loan amount, in the second slider, add the repayment tenure, and in the third, the interest rate. The EMI calculator will accurately compute the amount you have to pay. This makes it easier to choose an affordable home loan option.
EMI Calculator
Loan Amount
₹
Rate of Interest (P.A)
%
Loan Tenure
Yr
Principal Amount
Total Amount
The DHFL housing loan EMI calculator works based on the formulaic expression.
Read: ICICI Home Loan Interest Rates – Updated in April 2024
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EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1];
Here P, N, and R represent variables. The EMI changes when these values change.
- P represents the principal amount. This amount is the amount lent to you by the bank/lender. The amount depends on your requirement and purpose. A higher loan amount will have a higher monthly instalment you must pay towards the loan.
- R represents the interest rate. The rate of interest is charged based on your principal amount. These rates may vary based on the type of loan you take or the tenure of your loan. The interest rate has the biggest impact on your EMI. It is important to compare the interest rates of various banks before you choose.
- The N represents the number of years of the loan tenure. The tenure shows the period in which you have to repay the loan. Since the EMI is calculated in months, the tenure is also calculated in months.
Take this example to understand how the EMI calculator works. You have borrowed Rs 1 lakh for two years at an interest rate of 10%.
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]
P = Rs 1,00,000. R = 10/100/12 (convert to months) and N = 2 years or 24 months.
EMI = [1,00,000 * 0.00833 * (1+0.00833) ^24]/(1+0.0083) ^24 – 1]
EMI = Rs 4,615.
DHFL Home Loan EMI Calculator at Different Tenures and Amounts @8.70% Interest Rate
Suppose you decide to take a loan for 10 years:
- If the loan amount is 10 lakhs over 10 years, you would have to repay 15 lakhs during the tenure, and your monthly EMI accounts to Rs 12000
- If the loan amount is 20 lakhs over 10 years, you would have to repay 30 lakhs during the tenure, and your monthly EMI accounts to Rs 25000
- If the loan amount is 30 lakhs over 10 years, you would have to repay 45 lakhs during the tenure, and your monthly EMI accounts to Rs 37500
- If the loan amount is 40 lakhs over 10 years, you would have to repay 60 lakhs during the tenure, and your monthly EMI accounts to Rs 50000
Calculating the Loan Amount Based on Tenure
- If the loan amount is 10 lakhs over 10 years, you would have to repay 15 lakhs during the tenure, and your monthly EMI accounts to Rs 12000
- If the loan amount is 10 lakhs over 20 years, you would have to repay 21 lakhs during the tenure, and your monthly EMI accounts to Rs 8000
- If the loan amount is 10 lakhs over 30 years, you would have to repay 28 lakhs during the tenure, and your monthly EMI accounts to 7800
This shows that a longer tenure results in lower EMI, but you would end up paying a lot more as interest.
Benefits of Using DHFL Home Loan EMI Calculator
EMI calculators have truly changed the game regarding customer awareness and the availability of information regarding how home loans work. Thousands of home loan hopefuls use DHFL home loan interest rate 2022 calculator, and it is more accurate and better than other options in the market due to the following reasons:
- The interface is user friendly and helps individuals with no technical knowledge to calculate the EMI.
- The calculator uses a set of graphs and charts to ease the understanding of your loan.
- It provides an accurate estimate of the upcoming expenses for the repayment; This enables the borrowers to forecast their payments and be financially prepared.
- The DHFL loan interest calculator helps borrowers compare the available loan options and select an EMI according to their financial capability.
- Calculating home loans manually is time-consuming. The DHFL loan calculator helps you understand the payment breakdown faster.
- Reduces the risk of errors during calculation as the DHFL bank home loan calculator delivers accurate results.
- Helps to negotiate with banks and settle down for an affordable interest rate.
Tips to Decide the Right Amount of EMI
A home is everyone’s dream. I am sure you have pictured a beautiful and perfect home for you. Just as you decide the ideal home for you, you should choose a custom loan scheme tailored to your financial capabilities. It would help if you thought of a loan as a financial marriage for the next 15 to 20 years. You would have a fixed contribution from your salary to your lender every month. The DHFL home loan interest calculator will help you keep the EMI amount set within a manageable range. It would be best to not overburden yourself in managing your loan and monthly expenditures.
- You should consider a loan only if you have a comfortable financial status.
- It is important to draft terms that are agreeable by both parties.
- Before committing to tenure and EMI amount, you should understand your present burden and future financial commitments.
- It is good to set aside some money as emergency funds, typically your salary of up to 6 months. These emergencies can include a flood or a sudden illness that broke out. These funds could help you get through without defaulting your loan and creating additional liability.
- Choosing the wrong loan scheme would end up leaving you broke and drastically affecting your credit score.
- Most home loans are long tenure loans, and you must ensure that you don’t default on any loan payment.
It Would Be Best If You Made a Decision Based on the Following Factors
Present Family Income
It is important to analyse the total income from all sources. Taking a note of your income once in a while is ideal for managing expenses. Make sure you include all sources like weekend tutoring, Freelance jobs, or income from a side hustle. Your main source would be your job and feel free to include any bonuses or incentives that come your way when the down payment is considered.
Overall Monthly Expenses
From all the money calculated from your income sources, subtract your monthly expenses. Include existing EMI, monthly investments, rent, utility bills, all expenses, major or minor. You shouldn’t consider a big loan if you are already dedicated to paying a car loan, an expensive health emergency, or an addition to the family.
Deciding to take a home loan is a big decision in anyone’s life. It is a financial commitment that stays for a long time, and hence knowing every little detail of your home loan is essential before taking a life-changing decision. DHFL home loan calculator aims to provide accurate and quick information about every aspect of a home loan. The calculator will be useful for everything from interest rates to EMIs and repayment schedules! If you need help applying for a home loan, you will certainly find help at NoBroker. Please leave a comment below this article so that our executive can get in touch with you.
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FAQ’s
Q1. What is a DHFL housing loan calculator?
Ans: A home loan calculator is a digital calculator (available online) that instantly calculates interest rates, EMI and repayment schedule based on the amount of loan and tenure entered by the user.
Q2. Is it a good decision to opt for a high home loan EMI to reduce the interest payable?
Ans: Settling for higher amounts would become a burden and affect the monthly budget. It would be best to not overburden yourself as it could be difficult to manage existing expenses.
Q3. What should be the Ideal home loan EMI for salaried employees?
Ans: Generally, it is suggested that your EMI amount should not be greater than 40 percent of your savings. The 40 percent of your monthly savings should be your EMI.
Q4. What is the maximum tenure that DHFL allows for home loans?
Ans: The maximum tenure that most lenders, including DHFL provide for home loans is 25 years, or 20 years if the applicant is below the age of 28 years.
Q5. What is the best way to repay a home loan faster?
Ans: Trying to repay at the earliest is the best tactic in closing your loan with minimal additional payment. You pay the extra amount (for example, 1 extra EMI every 3 months) without fail and reduce the principal amount due. As you make the repayment regularly, you would end up clearing your loan much earlier than your initial agreement. This would end up saving you extra interest and a whole lot of money.
