Wrong EMI Calculation

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  1. Bablu Ghosh

    Bablu Ghosh New Member

    Will you kindly help me?

    My son had taken a loan of Rs 3000000 from one HFC some 5 years back.As he paid off against principal outstanding balance from time to time he had some Rs 910961 to paid in 19 more installments at 9.5% ROI.His EMI was Rs 51831 accordingly.However he again paid back Rs 298988 and opted for 13 more installments to totally pay off the loan.After paying this Rs 298988 as on 1st May he has to pay back Rs 910961- Rs 298988 equal to Rs 611973 to be paid off in 13 more installments at 9.5% ROI.As per all home loan Amortization calculator the EMI is Rs 49725.But HDFC is still charging Rs 51831(last EMI value before paying off Rs 298988,)still now and they are not reducing the EMI .The arithmetic formulae used to calculate EMI was also given to HDFC..For your kind perusal a chart is given depicting what is normal and what HDFC is charging.By HDFC method one is to loose a total of Rs 27378 against interest value. Please offer your suggestions to arrive at reality.

    ACTUALLY WHAT IT SHOULD BE (As per all related institutions) HDFC FIGURES
    Period EMI Interest Principal Balance Period EMI Interest Principal Balance
    0 Rs. 611973.00
    1 Rs. 49724.71 Rs. 4844.79 Rs. 44879.93 Rs. 567093.07 1 Rs 51831 Rs 4845 Rs 46986 Rs 564987
    2 Rs. 49724.71 Rs. 4489.49 Rs. 45235.23 Rs. 521857.85 2 Rs 51831 Rs 4473 Rs 47358 RS 517629
    3 Rs. 49724.71 Rs. 4131.37 Rs. 45593.34 Rs. 476264.51 3 51831 4098 47733 469896
    4 Rs. 49724.71 Rs. 3770.43 Rs. 45954.28 Rs. 430310.23 4 51831 3720 48111 421785
    5 Rs. 49724.71 Rs. 3406.62 Rs. 46318.09 Rs. 383992.14 5 51831 3339 48492 373293
    6 Rs. 49724.71 Rs. 3039.94 Rs. 46684.77 Rs. 337307.36 6 51831 2955 48876 324417
    7 Rs. 49724.71 Rs. 2670.35 Rs. 47054.36 Rs. 290253.00 7 51831 2568 49263 275154
    8 Rs. 49724.71 Rs. 2297.84 Rs. 47426.88 Rs. 242826.12 8 51831 2178 49653 225501
    9 Rs. 49724.71 Rs. 1922.37 Rs. 47802.34 Rs. 195023.79 9 51831 1785 50046 175455
    10 Rs. 49724.71 Rs. 1543.94 Rs. 48180.77 Rs. 146843.01 10 51831 1389 50442 125013
    11 Rs. 49724.71 Rs. 1162.51 Rs. 48562.21 Rs. 98280.81 11 51831 990 50841 74172
    12 Rs. 49724.71 Rs. 778.06 Rs. 48946.66 Rs. 49334.15 12 51831 587 51244 22928
    13 Rs. 49724.71 Rs. 390.56 Rs. 49334.15 Rs. .00 13 51831 28903 22928 0
    IN THE LAST MONTH THE INTEREST COMPONENT(Always Decreasing Interest Method) HAS SHOOT UP TO Rs 28903.HOW AND WHY?
    TOTAL ACTUAL INTEREST IN 13 MONTHS=Rs 34448 HDFC TOTAL INTEREST IN 13 MONTHS=Rs 61830

    AN AMOUNT OF Rs 27382 is to be paid more by the customer
    As THE EMI HDFC IS CHARGING IS MORE BY Rs 51831-Rs49725 EQUALS Rs 2106,IN 13 MONTHS Rs 2106X13 =Rs 27378
    EMI FORMULA WHICH IS KNOWN TO EVERYBODY
    EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal,(P=611973) R is the interest rate per month [if the interest rate per annum is 9.5%, then the rate of interest will be 9.5/(12 x 100)], and N is the number of monthly instalments.(N=13) .By simply putting these values in the formulae EMI comes out to be Rs 49725 and NOT R s 51831.
    Please offer your suggestions to arrive at reality and help.HDFC is never saying that extra amount will be refunded.THE AMORTIZATION SCHEDULE DOES NOT SHOW IT.With thanks
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