#### Overview

The equated monthly instalment (EMI) you must pay to service a home loan from Home First Finance Company (HFFC) will depend on several variables. These mainly include your HFFC home loan repayment tenure, principal amount borrowed, applicable interest rate, and your creditworthiness. If you want to know what your monthly EMI outflow will look like with different HFFC home loan amounts, tenors and interest rates, you can use the Home Loan EMI calculator on Bajaj MARKETS.

## How is the Home Loan EMI Calculated by HFFC?

HFFC calculates your home loan EMI amount after accounting for factors such as your home loan repayment tenure, your principal amount, and your interest rate. Then, it will use a mathematical formula to arrive at your monthly HFFC home loan EMI outflow. Using the manual formula to do so can prove to be a cumbersome task, which is why it is easier to use a Home Loan EMI calculator.

## HFFC Home Loan EMI Calculation Methods

You can calculate your HFFC Home Loan EMIs in three ways, using the manual formula, using Microsoft Excel, and using the Home Loan EMI calculator available on Bajaj MARKETS. Let us understand about these methods in detail:

### HFFC Home Loan EMI Calculation Formula

To calculate your HFFC Home Loan EMI amount manually, use this formula:

HFFC Home Loan EMI: [P x R x (1+R)^N]/[(1+R)^N-1]

where,

• P is the principal (amount borrowed as loan)

• R is the monthly rate of interest

• N is the loan repayment tenure in months

### Calculate HFFC Home Loan EMI With Microsoft Excel

You can calculate your monthly HFFC home loan EMI outflow through Microsoft Excel if you enter the following function in one of the cells:

=PMT (RATE,NPER,PV,FV,TYPE)

where,

• RATE stands for the applicable HFFC housing loan interest rate

• NPER is the total number of monthly EMIs

• PV stands for the outstanding principal amount

• FV is the future value or the cash balance post the last EMI payment. Note that this can be omitted and the value will be counted as zero.

• Type is 0 or 1. This is an indicator of when the payment is due. If it is due at the end of the month, the type will be 0. If it is due at the start of the month, it will be 1.

### Calculate HFFC Home Loan EMI with Home Loan EMI Calculator

You can save yourself the time and energy you would have otherwise wasted on the above two methods simply by using the Housing Loan EMI calculator available on Bajaj MARKETS. It is a free online tool available on our portal that will ask you some basic information pertaining to your HFFC home loan.

All you must do is enter the principal amount, the preferable loan repayment tenure (in months), and the estimated interest rate on the borrowing. Within seconds, you will see your HFFC home loan EMI amount displayed on the screen.

## HFFC Home Loan EMI Amount at Different Tenures

The EMI calculator requires you to enter the tenor as one of the three criteria to calculate the EMI amount. This is because apart from your loan amount and the rate of interest, the length of your tenor (the term for which you will repay the loan) plays an important part in calculating your overall EMI.

Here is a representation of how your HFFC Home Loan EMI amount changes across different tenors for the same loan amount (at an interest rate of 12%):

Loan Amount

Loan EMI amount on the basis of the repayment tenor

15 years

20 years

25 years

₹24,003

₹22,022

₹21,064

₹48,007

₹44,043

₹42,129

₹72,010

₹66,065

₹63,193

₹96,013

₹88,087

₹84,258

## Factors affecting HFFC Home Loan EMI Amount

• Credit Score: Credit Score plays a major role in determining the Home Loan EMI. A good credit score i.e. above 750 will give the lender the assurance that you will be able to repay the loan on time, without defaulting. A good credit score will also help you get a loan at attractive interest rates.

• Income: A steady source of income is also an indicator that you have the ability to repay the loan on time and that your profile is not a risky one. This will greatly reduce your EMI amount.

• Loan-to-value Ratio: It is the percentage of the loan amount you wish to borrow to the value of property you want to purchase. Higher LTV is considered risky by the lenders as the chances that the borrower will not be able to pay the loan can be high. A low LTV will help you get a loan at lower interest rates, thus carrying lesser risk.

• Repayment Tenure: A longer repayment tenure can significantly reduce the Home Loan EMI. This also means you may need to pay a higher interest rate on the principal outstanding amount.

The HFFC home loan EMI calculator is a very useful online tool that allows you to get an estimate of the EMIs that you would be paying every month for your home loan. You can use the HFFC home loan EMI calculator on Bajaj MARKETS and make your future financial plans accordingly.

## FAQs on HFFC Home Loan EMI Calculator

#### ✔️How will a home loan EMI Calculator help me plan my home purchase?

If you compute your HFFC home loan EMI beforehand, you will know your exact monthly outflow and see if it can fit in your monthly budget. You can also compute your home loan EMI amount for different loan repayment tenures and make a decision regarding what kind of HFFC home loan repayment terms you will be comfortable with.

#### ✔️How do part-prepayments impact my HFFC home loan EMI amount?

If you partially prepay your HFFC home loan EMI amount, you will effectively reduce the outstanding home loan balance. As a result, you will either get to reduce your EMI amount or loan repayment tenure. Either way, you will save on the interest that you would have additionally paid prior to the prepayment.

#### ✔️Can I reduce my HFFC home loan EMI?

Yes, you can get your HFFC Home Loan EMI reduced. You can get it done by either partially prepaying the same or opting for a longer loan repayment tenure. Additionally, you can even request the lender to reduce your home loan interest rate if you have a good relationship with them.