[IDFC Bank] Home loan calculator and actual EMI mismatching

[CC-Muncher]

I have a IDFC home loan with an 8.75% interest rate (monthly reducing rate) offered with an EMI of Rs 27,876 for a loan of 32 Lakh of which the balance amount is Rs. 28.64 Lakh and tenure 191 months left out of a total of 213 months. (I am having a healthy cibil > 800 for quite long)

If I use the IDFC home loan calculator or any other I see EMI to be less than what is charged. On checking with the Nodal officer (Grievance Redressal Team) the reply I got was -
"The operations team has calculated it and the system has generated this EMI."

They don't have any answer for what different calculations they are doing to arrive at increased EMI. On telling them If I complained to the RBI Ombudsman about not being able to provide info about the difference in EMI calculation, the executive said he couldn't comment on that and asked me to do whatever felt right.

Is anyone else in the same boat? how to go about it and get the same EMI as shown in all the calculators?

 

[okrajjo]

Here are some potential reasons that could explain the higher EMI being charged by IDFC Bank compared to online calculator estimates:

1. Processing Fees/Charges: Many banks factor in upfront processing fees or other charges into the EMI calculation, which can increase the EMI amount slightly over the tenure.
2. Loading on Interest Rate: It's possible the bank loaded a small premium over the quoted 8.75% interest rate for risk-pricing or other reasons, which online calculators don't account for.
3. Different Interest Calculation Method: Banks may use daily/quarterly rests instead of monthly rests for interest calculations, which can marginally impact the EMI.
4. Rounding Off: The bank's internal calculations could involve rounding off decimal figures, leading to a small variation in the final EMI figure.
5. Overdue Charges: If there are any outstanding delayed payments or charges, the bank could be factoring that into a higher EMI temporarily.
6. Data Entry Errors: There's a slim chance the bank made an error in entering the loan details into their system initially, leading to a higher EMI calculation.

While these potential reasons don't justify the lack of transparency, they could possibly explain the marginal difference in EMI calculation. However, the bank should provide a proper breakdown to justify any deviation from standard EMI computations using the quoted loan terms.