Trending news: HDFC Home Loans Rate Hike: HDFC increased home loan interest, now how much more EMI will you have to pay than before

Table of Content

• Can I increase and decrease my HDFC Home Loan EMI ?
• What is a Pre-Approved Home Loan?
• Home loans EMI: How to control rising EMI, know details here
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• HDFC ग्राहकांसाठी महत्त्वाची बातमी! खिशाला कात्री लागणार, होम लोनचा EMI वाढणार
• HDFC offers various Repayment Plans enhancing Home Loan Eligibility:
• HDFC hikes retail prime lending rate: Home loan EMIs to shoot up, check details here

The interest burden will increase by Rs 2.95 lakh for the entire tenure. 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. If you purchase an under construction property you are generally required to service only the interest on the loan amount drawn till the final disbursement of the loan and pay EMIs thereafter. In case you wish to start principal repayment immediately you may opt to tranche the loan and start paying EMIs on the cumulative amounts disbursed. Our tailor made home loans caters to customers of all age groups and employment category.

This is why you should always keep affordability as a primary factor when selecting your loan EMI amount. I took a loan of $ __________ for _____________ (Purpose – Car Loan/ Education Loan – Mention Loan Purpose) and which was to be repaid in ____________ (Number of EMI’s). I want to increase the installment amount to _________ due to __________ (Increase in Salary/ Financial Reason/ Personal reason) so as to reduce installments.

Can I increase and decrease my HDFC Home Loan EMI ?

With this option you get a longer repayment tenure of up to 30 years. This means an enhanced loan amount eligibility and smaller EMIs. 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. Subsequently, the repayment is accelerated proportionately with the assumed increase in your income. In the last 8 months, HDFC has decided to increase the interest rates for the 8th time.

What is a Pre-Approved Home Loan?

HDFC’s home loan calculator provides a complete break-up of the interest and principal amount. For individuals with a credit score of 750 or more, SBI, which dominates the market in terms of home loan AUM with over Rs 6 lakh crore, offers a minimum lending rate of 8.75 per cent. However, this rate is a part of its ongoing holiday promotion, which is valid till January 31, 2023. Generally, the bank's standard rate is 8.90 per cent for individuals with a credit score of 800 or more. Do you know that if you make a prepayment, banks won’t charge you anything? Although it may seem like a simple gesture, if made, it could result in significant savings on interest expenses.

Since most of the EMI comprises interest with a small principal component, prepayment facility makes a lot of financial sense. The exact date of transmission of the increased policy rates for fresh home loan and other retail loan borrowers would depend on the rate reset dates set by the banks as per their guidelines. For existing floating rate loans linked to repo rate, the borrowers would be charged higher rates from their interest reset dates, Kukreja added.

Home loans EMI: How to control rising EMI, know details here

Pre-EMI is the monthly payment of interest on your home loan. 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.

The branch manager’s confirmation of your higher income is required for this type of borrowing. You’ll receive a new loan agreement letter with the updated tenure after all the requirements are completed. 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. 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.

According to HDFC, only customers with credit scores of 800 or higher will be eligible for the new rate of 8.65 per cent.

You need to pay EMIs throughout the loan tenure till you have paid off your home loan. Another option could be transferring the balance to a lender offering competitive interest rates. In simple words, eligible borrowers can shift their home loans to a bank which offers lower interest rates than their existing lender.

Let’s say you have taken a loan of Rs. 25 lakh for a tenure of 20 years at 8.6% interest. Being a homeowner is one of the most fulfilling experiences for most people. Since this requires a large capital outlay, it makes sense to take a home loan to meet the purchase value of the home. This not only does away with having to wait for years to accumulate the necessary amount to purchase your home, a home loan also provides attractive tax benefits. Go through the list of documents required and keep them ready before starting your home loan application process.

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The SBI EBLR has now increased to 8.55% while RLLR has gone up to 8.15%. The 50 basis point increase in lending rates means the home loan interest rate of SBI would go up by 0.5%, which will translate into increased monthly EMI, depending on the loan benchmark. SBI has hiked the repo-linked lending rate and external benchmark lending rate by 50 basis points. The lending rate hikes will push the home loan EMIs of customers of these lenders higher from the next interest reset cycle. Other lenders are also expected to increase their lending rates soon.

The bank’s normal rate is 8.90 percent for those with a credit score above 800. Similarly, the festive offer rate of ICICI Bank starts from 8.75 percent. This is also available to customers with 750 plus credit score. EMI refers to the ‘Equated Monthly Installment’ which is the amount you will pay to us on a specific date each month till the loan is repaid in full.