When it comes to financing your home, finding ways to save on interest and reduce overall loan commitments is key. With the HDFC home loan prepayment calculator, you can instantly calculate how partial or full prepayments can significantly lower your debt burden.
Save Lakhs on Your HDFC Home Loan with Prepayments!
Why Prepay Your HDFC Home Loan?
Paying off your HDFC Home Loan early gives you the chance to become debt-free sooner and focus on other financial goals.
| Benefit | Description |
|---|---|
| Lower Interest Costs | By reducing your outstanding principal, prepayment directly slashes the total interest payable on your loan. |
| Shorter Tenure | Prepayments help cut down your loan tenure, allowing you to become debt-free faster. |
| Reduced EMIs | If you prefer, you can opt for lower EMIs while keeping the loan tenure constant. |
| Significant Savings | Depending on your loan amount and tenure, prepayment can save you lakhs of rupees over the loan’s lifetime. |
HDFC Home Loan Prepayment Charges
| Loan Type | Time Period | Prepayment Charges |
|---|---|---|
| Adjustable Rate Loans (ARHL) Combination Rate Home Loan (CRHL) (Variable Rate Period) | First 6 months | 2% (plus applicable taxes) on the prepaid amount. |
| 6 to 36 months | Up to 25% of opening principal per financial year: No charges. Beyond 25%: 2% on excess amount. | |
| After 36 months | Own sources: No charges. Refinanced funds: 2%. | |
| Fixed Rate Loans (FRHL) Combination Rate Home Loan (CRHL) (Fixed Rate Period) | First 6 months | 2% (plus applicable taxes) on the prepaid amount. |
| 6 to 36 months | Up to 25% of opening principal per financial year: No charges. Beyond 25%: 2% on excess amount. | |
| After 36 months | Own sources: No charges. Refinanced funds: 2%. |
How to use Credit Dharma’s Home Loan Prepayment Calculator?
- Enter the loan amount, interest rate, and specify the loan tenure.
- Enter the number of monthly installments (EMIs) you have already paid.
- Specify the amount you plan to prepay towards your home loan.
- The calculator will display the total interest saved and the reduction in your loan tenure or the number of EMIs remaining.
- Use the “Download Your Calculation Report” button to save a detailed report of the calculations.
Suggested Read: Home Loan Prepayment vs Investment
How Much Can You Save Using HDFC Home Loan Prepayment?
When you make a prepayment on your HDFC home loan—whether it’s a lump-sum amount or regular additional payments—you’re directly reducing your outstanding loan principal.
Since home loan interest is charged on the principal, bringing that principal down faster cuts the total interest you’ll pay over time and can also shorten your loan tenure.
Example
| Aspects | Amount |
|---|---|
| Loan Amount | ₹50,00,000 |
| Rate of Interest | 9.00% p.a. |
| Tenure | 30 years |
| No. of EMIs Paid | 60 EMIs |
| Amount Prepaid | ₹5,00,000 |
Results
| Aspect | Amount |
|---|---|
| Outstanding Principal | ₹47,89,731 |
| EMI | ₹40,231 |
| No. of EMIs Remaining | 216 |
Suggested Read: How to Download HDFC Home Loan Interest Certificate?
Factors to Consider Before Prepaying HDFC Home Loan
While prepaying home loans seems lucrative, borrowers must evaluate certain aspects beforehand:
Check Out: HDFC Home Loan Customer Care
Cut down on interest, not your dreams—choose HDFC Home Loan Prepayment.
Conclusion
Becoming a homeowner is a dream—but paying for that home shouldn’t feel like a financial marathon. With the HDFC Home Loan Prepayment Calculator at your disposal, you can make well-informed payment decisions that keep your finances healthy and your dreams well within reach.
Frequently Asked Questions
Prepayment can lead to a reduction in the loan tenure and/or EMIs, depending on the option the borrower chooses. By reducing the principal amount, the interest component decreases, allowing for these adjustments.
Prepaying a home loan can reduce liquidity, incur opportunity costs from foregone investment returns, lead to prepayment penalties, potentially affect your credit score, decrease tax benefits, and reduce financial leverage, so it’s crucial to weigh these risks against the benefits.
Yes, you can make prepayments on your home loan every month, provided your lender allows frequent prepayments without penalties.
Deciding between prepayment or continuing with a home loan depends on your financial situation. Prepayment can save on interest costs but may deplete your cash reserves. Consider your financial goals and consult with a financial advisor to make an informed decision.
For floating rate home loans, most banks, including HDFC, do not charge a prepayment penalty. However, fixed-rate loans may incur charges, especially if the prepayment is significant.
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