When we talk about housing loans, one of the most suggested lenders is HDFC Ltd. The reason is quite clear, the housing finance company is among the largest financier in the home loan segment. They provide the housing loan to salaried as well as the self-employed individual with the almost equal rate of interest.
The interest rate on loans including home loans is offered on the basis of factors such as income, age, employment status, and CIBIL score. Still, there are some advantages and disadvantages of choosing HDFC Ltd. as your housing loan lender. So, is this is the best option you have for home loans? Let us discuss in detail.
What is the difference between housing loan from HDFC Bank or HDFC Ltd.?
You must have heard people getting confused between the two as one and the same lender. It is through the housing finance company that the housing loan is disbursed. Many people find it convenient to contact the bank for queries related to home loan and then it is forwarded to HDFC Ltd.
What is the interest rate for home loans at HDFC Ltd.?
The rate is offered by keeping into mind many factors and income is one of the most important ones. For home loans, a borrower mostly chooses longer tenure and prefers the lowest rate so that the EMI is low. At present, HDFC home loan rates start from 8.50% per annum which is for the women applicants.
It is necessary to focus on the benefits of choosing these rates over other options in the market. Since loans are not only dependent on the interest rate (even if it is the backbone). The maximum loan amount you can get from the lender is also taken into account.
So, if HDFC is giving you a lower rate of interest but lower loan amount as well as compared to other lenders, it might not be the best choice for you.
So, what are you supposed to do? Well, there is no harm in going for the best option. At HDFC, the loan amount including 30 lakhs and including is 90% of the property value. The rate for this loan amount is 8.60%-9.15% per annum.
So, if any other lender is giving you a deal better than this, you can surely go for it. But as soon as loan amount increase, so does the rate. For loan amount above 30 lakhs, the rates vary from 8.70% – 9.25% per annum. You can compare different EMIs with the help of a home loan EMI calculator to finalize.
HDFC Home Loan EMI Calculator
You can check your payments even before applying for the loan. Use a loan EMI calculator for this and mention following details:
- Loan amount
- Interest rate
For instance, if you getting the rate approval of 8.50% per annum as per your eligibility and income, your payments would be as follows:
Loan amount- ₹20 lakhs
Interest rate- 8.50% p.a.
Tenure- 20 years
The payment details will be as follows:
Monthly EMI- ₹17,356
Total Interest Outgo- ₹21,65,552
Total Amount (Interest + Principal)- ₹41,65,552
Thus, you can see the EMI is subject to change with the disbursed loan amount, interest rate and tenure. So, calculate EMIs with different lenders and then decide which is the most suitable option.