Home Loan EMI and Credit Card Interest Calculation..

HDFC Credit Card Interest Calculation:

Interest Calculated = (Outstanding amount * 3.40% pm * 12 months * no. of days) / 365

Lets assume tha statement generation date is 18^th of every month and so the interest calculation will take place from 19^th of the month if previous month due is not paid fully on due date. (Late payment charge will be applicable if minimum due amount is also not paid on time).


 

1. 19th April to 11th May
   20000 * 0.034 * 12 * 23 / 365 = 514.19
2. 12th & 13th May
   18000 * 0.034 * 12 * 2 / 365 = 40.24
3. 14th May
   19000 * 0.034 * 12 * 1 / 365 = 21.24
4. 15th to 18th May
   4000 * 0.034 * 12 * 4 / 365 = 17.89

• Hence total interest will be 593.56
• Late payment charge will be 500.00 (since min. amount due is not paid on/before due date)
• Service tax (12.36%) on interest and late payment charge. (593.56 + 500) * 0.1236 = 135.16
• Total 'Finance Charges' will be 1228.72 on next month bill.

Home Loan EMI Calculation:

Home Loan EMI = ((L * i)  *  (1 + i)^N) / (((1 + i)^N) - 1)

L – Loan Amount.

N – Period in months.

i – Interest rate per annum. (10.15% => 0.1015 / 12 = 0.0084583)

Lets assume 10 lakh loan borrowed at 10.15% of interest rate per annum for the tenure of 20 years (240 months).

EMI = (100000 * 0.0084583) * (1.0084583 )²⁴⁰

                                                (1.0084583)²⁴⁰ – 1

                = 8458.3 * 7.54930091367

                                6.54930091367

                = 9749.78 per month.