Everyone dreams to be a homeowner at some point or the other. But the irony is that only a few live those dreams in the real life, with many having to stay in a rental accommodation and face the hassles that it brings to the fore. Someone has to change the status quo, isn’t it?
So, Dewan Housing Finance Corporation Limited (DHFL) is thriving on the challenge of taking many residing in rental flats to their own by giving them a suitable home loan. Yes, it does bear an interest rate but is affordable, a purpose very much solved, right? But it’s not the interest rate which should be the only concern. You need to go beyond it to see how the repayment is likely to pan out for you. The article will let you go beyond, so take a look.
DHFL Home Loan Interest Rates at a Glance
DHFL offers home loans to both salaried and self-employed for a maximum of 30 years at an interest rate starting from 8.35% per annum. However, the setting of actual rates will depend on the quantum of loan applied for. Loan amount of up to ₹25 lakhs and ₹25 lakhs-75 lakhs will bear an interest rate of 9% per annum each. On the other hand, loans above ₹75 lakhs- 150 lakhs, above ₹150 lakhs-300 lakhs and above ₹300 lakhs would come at 9.15%, 9.35% and 9.75% per annum, respectively. Now, these rates are applicable to salaried and self-employed professionals (SEPs). Self-employed non-professionals (SENPs) will be charged 0.10% extra than their salaried/SEP counterparts, except when the last case of above 300 lakh loan where 10% interest rate is applicable.
DHFL Home Loan Interest Rate Calculator
After knowing the interest rates applicable to different loan amounts, it’s time to go beyond and check the indicative EMI. The tool which can help you do that is an DHFL home loan interest rate calculator, which is famously called as EMI calculator. You just need to enter three variables – loan amount, interest rate and tenure – in the calculator to compute the EMI, a combination of interest and principal payable every month to the lender. What needs to be noted is the fact that it’s available online, making it easier to access and calculate.
DHFL Home Loan Amortization
The amortization means a schedule of repayment of a loan for the period it runs for. The schedule clearly shows the bifurcation of interest and principal amount payable every year. In addition, the schedule will let you know the outstanding loan balance at the end of every year. What the schedule will do in your favour is to let you plan your finances to ensure a smooth repayment. You can even take a note of the schedule to know the time by which you can look to prepay the loan. This is called as a prepayment in the world of loan, wherein a debt is paid off much before the expiry of the tenure. Investments in mutual funds, public provident fund (PPF) and other financial products can lead you to a position to prepay.
Check the outstanding loan balances of every year to figure out the amount you would be able to prepay. For example, on a 20-year ₹35 lakh loan offered at 9%, you would need to pay an EMI of ₹31,490. If you look at the amortization schedule carefully, you will find an outstanding balance of ₹15,16,999 at the end of 15th year. The amount may seem quite tall but regular and disciplined investment can help you generate that corpus to pay it before the actual loan closure time and save on the interest repayment.
How Can You Apply for DHFL Home Loan?
It’s your choice – whether to go online or offline to apply for a home loan. Speaking of the convenience, the online option provides more of that. All you need to do is to visit the official website of DHFL and click on ‘Apply Online’. A new window will open asking you to enter your name, mobile number and the characters. After doing all that, click on ‘Submit’ button at the bottom. Subsequently, DHFL will call you on your number and get further details regarding your income and the property you are looking to buy.
The housing finance firm will send executives to check the authenticity of the details before picking the relevant documents to process your application. After all these formalities, DHFL will disburse a loan to your account to service for the period you may opt for.