Do you know home loans are generally taken for a long period of time ranging from 15 to 20 years? Also, this period can go up to a maximum of 30 years. Talking about a home loan, lenders charge a certain interest on the principal loan amount. Think about paying the higher interest rates for a longer period of time, would you be able to pay it? You can know the interest outgo with the help of the Tata Capital Home Loan EMI Calculator. This is why individuals look to save several methods with which they can ensure maximum savings on their home loan facility.

So, what are these methods? Well, there are many. Like you can choose to opt for a shorter tenure or you can choose lower interest rates. Some other methods are paying a higher down payment amount or choosing the prepayment for your loan. But one of the most popular methods is to go for a Balance Transfer Facility on your Home Loan. Individuals can ensure maximum savings on their home loans with this facility.

To know how much money you can save, we can use the Tata Capital Home Loan EMI Calculator. In this article, we will tell you everything related to it. So, keep reading.

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### Know your Savings with Tata Capital Home Loan EMI Calculator

Before knowing the interest rates, it is important for you to understand what exactly is the Balance Transfer Facility. Well, suppose you are having a higher interest rate on your home loan. Now after a few years into your loan, you want to transfer your outstanding principal balance at lower Tata Capital Home Loan Interest Rates. Since the new rates are lower, you can enjoy the savings.

Lenders usually charge a One-time Processing fee for the Balance Transfer Facility. Now, let’s understand how much money you can save with this facility. We are showing you an example. Have a look.

Suppose an individual has a 20-year home loan of INR 35 lakh at an interest rate of 9.50% per annum. Now, after paying EMIs for four years without any fail, he wants to transfer his principal outstanding balance to Tata Capital Home Loan Interest Rates of 6.80% per annum. So, in this process, how much money can he save? Let’s know in the process.

For the loan amount, the EMI must be INR 32,625 and after paying this EMI for four years without any fail, he wants to opt for the Balance Transfer facility.

The interest outgo on this amount will be INR 43,29,902.

The interest paid till the time of 4 years will be INR 12,80,258 while the outstanding balance at the end of 4 years will be INR 32,14,278.

According to this amount, the new EMI at the interest rate of 6.80% per annum will be INR 27, 511, and the interest outgo will be INR 20,67,810. So, the total interest will be INR 33, 48,648 (12,80,258 + 20,67,810).

So, you can see the estimated EMI savings will be INR 5,114 (32,625 – 27,511) on opting for lower HDFC Home Loan Interest Rates while the savings in the interest outgo will be INR 10 lakh approximately.

All of these calculations can be done by the Tata Capital Home Loan EMI Calculator. You only need to put in a few details such as Required Loan Amount, Rate of Interest, and Required Tenure. As soon as you put these details into the tool, you will get the EMI amount, Interest Outgo, and the total amount payable. It is necessary to do these calculations before going for a Balance Transfer Facility so that you can estimate your savings. Other than this, you can also use it while estimating your EMI amount to know whether it is within your repayment capacity or not.