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# DCB Home Loan EMI Calculator

Last Updated 17th Oct 2017

## DCB Home Loan - Lowest EMI is Rs. 997 per lakh

• Get monthly EMI as low as Rs. 997 per lakh with Development Credit Bank now offering home loans with loan tenure upto 20 years.
• Lowest home loan interest rate currently offered by Development Credit Bank is 10.48%, for which the EMI per Rs. 1 lakh loan amount comes to Rs. 1,104 for a 15 year loan and Rs. 997 for a 20 year loan.
• Home loan EMI in Development Credit Bank depends upon loan amount, repayment tenure and interest rate.
• Check the EMI for other tenures using the Development Credit Bank home loan EMI calculator on this page.
Home Loan EMI Calculator
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## Home Loan EMI Calculator Development Credit Bank

### DCB Home Loan EMI

• Home Loan EMI (or equated monthly instalment) is a fixed amount of money paid by you to Development Credit Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
• With Development Credit Bank offering Home Loans with loan tenure upto 20 years, the loan EMI can be as low as Rs. 997 per lakh, to make it more affordable and convenient to meet your needs. Lowest Rate of interest offered by Development Credit Bank on Home Loan is 10.48%.
House loan EMI Calculator at different tenures
Home Loan EMI for different loan amounts and tenures @ 10.48% interest rate
Loan Tenure
Loan Amount (Rs.) 10 years15 years20 years
2,500,000 33,70627,60424,926
5,000,000 67,41255,20849,852
7,500,000 101,11782,81274,778
10,000,000 134,823110,41699,704
• As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 15, 20 and 30 years. Your EMI is higher when you take loan for a shorter tenure of 15 years and it is lower when you apply for a higher tenure of 30 years.
• Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.
Use EMI Calculator to calculate your interest on home loan at different tenure
Home Loan EMI for Rs. 1 Lakh loan amount at lowest 10.48% interest rate offered by Development Credit Bank for different tenures
15 years 20 years 25 years 30 years
Development Credit Bank EMI for a loan amount Rs. 1 lakh at 10.48% 1,104 997 943 913
Total amount you pay back to the bank including principal and interest 198,720 239,280 282,900 328,680
Interest you have to pay over loan tenure 98,720 139,280 182,900 228,680

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a Rs. 1,00,000 loan for a period of 30 years, you pay the lowest EMI of Rs. 913. However, you pay an interest of Rs. 228,680 on a Rs. 1,00,000 loan.
In contrast, if you take a Rs. 1,00,000 loan from Development Credit Bank at the lowest loan rate offered for a period of 15 years, you pay a higher home loan EMI of Rs. 1,104 and pay an interest of only Rs. 98,720 which is less than half of what you paid in a 30 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors Affecting Development Credit Bank Home Loan EMI
• Loan amount – This is the amount borrowed by a borrower from Development Credit Bank. If you apply for a higher loan amount, your monthly EMI will be high. Development Credit Bank gives minimum home loan of Rs. 1,500,000 upto an amount of Rs. 100,000,000.
• Interest rate - Interest rates is the rate charged by Development Credit Bank on your home loan. Higher interest rate increases your housing loan EMI which will increase the total cost of the loan. Lowest interest rate offered by Development Credit Bank is 10.48%. Do complete market research and compare rates online before you apply for a home loan.
• Loan tenure – This is the period in which you can repay your home loan in Development Credit Bank. Longer loan tenure means lower housing loan EMI. Loan tenure can be determined by your age at the time of loan sanctioning and your retirement age. Generally, Development Credit Bank offers house loan for a maximum tenure of 20 years.

### DCB Home Loan EMI calculator formula

P*r* (1+r)^n/([(1+r)^n]-1)

Here is an illustration of how Development Credit Bank Home Loan EMI is calculated:

In above formula,

P = Loan amount. This can range from Rs. 1,500,000 to Rs. 100,000,000

r = Rate of interest per month. Current rate is 10.48%, which is linked to DCB 1 Year MCLR, which is currently 9.72%. Last revised on 18th Jul 17

n = tenure in month. For Development Credit Bank, this can be 240 months

### Tips to decide the right amount of EMI

• Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. The amount of loan you need to borrow is a function of the value of the property and available funds with you. Remember house loan is a long term loan, and hence it is advisable to minimise your loan amount to the extent possible. Limit your loan amount to the balance funds you need to fund the property after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
• Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
• Calculate your Development Credit Bank home loan eligibility: Your home loan eligibility is a function of value of the property and assessment of your repayment capacity based on your monthly income. Development Credit Bank provides a LTV upto 80% and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV 80%, Development Credit Bank would expect its borrowers to provide margin money of 20%. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.

### Quick guide on Development Credit Bank home loan

• Purpose of Loan: Development Credit Bank home loan is taken to purchase, construct a home, renovate your existing home.
• Key Features
• Loan available for both salaried and self employed. Special rates for women borrowers.
• Borrowers within the age group of 21 and 60 years.
• Security: Mortgage of property you are planning to purchase, renovate or construct.
• Loan to Value Ratio upto 80%.
• Loan Tenure 5 to 20 years.
• Interest rates in the range of 10.48% to 11.35%.
• Lowest EMI of Rs. 997 per lakh
• Processing Fees: 2.00% of loan amount, with a minimum of Rs. 5,000 and a maximum of Rs.
• Special schemes: Development Credit Bank offers customised home loan interest rates and schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Some of the special loan offers of Development Credit Bank are:
• DCB Home Loan
• DCB Home Improvement Loan

### Will the DCB home loan EMI remain constant or change in future? What happens in case of increase or decrease in interest rate?

• Typically, the home loan EMI remains unchanged unless the customer requests for a change and the same is approved by Development Credit Bank subject to its eligibility conditions (note that nominal charges may apply for effecting a customer initiated change in EMI)
• In case the floating rate of interest on your home loan increases, Development Credit Bank will typically keep the EMI constant but increase the loan tenure. So, you will pay the same EMI but for a longer duration. In case the interest rates increase to an extent that the revised loan tenure is more than the maximum permissible by Development Credit Bank, the bank may increase your EMI amount.
• For partly disbursed loans availed under tranched EMI scheme, your loan EMI will increase with each disbursement.

### Will home loan EMI change in case of prepayment?

• Development Credit Bank allows prepayment at nil charges or penalty in case of floating rate home loans.
• When you make a prepayment, the outstanding principal amount on your home loan reduces. In this case, you may choose to either keep the EMI the same and reduce the loan tenure (that is pay off the loan faster) or reduce the EMI and keep the loan tenure the same (that is pay lesser amount every month). It is beneficial to keep the EMI constant and reduce the loan tenure as you pay less interest to the bank in this option.

### Why should I calculate Development Credit Bank loan EMI before taking a loan?

It is advised to calculate home loan EMI prior to taking a home loan. There are several benefits of calculating your Development Credit Bank housing loan EMI as discussed below -

• In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
• If you already know the EMI you have to pay each month, then you can plan your spends accordingly
• Based on the EMI amount, you can opt for making prepayment of your home loan in future when you have surplus amount

### Compare Home Loan EMI of All Banks

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