1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For home loans, EMI payments include both principal and interest components.

2. How EMI is Calculated?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Example: For ₹50 lakh loan at 8.6% interest for 20 years (240 months):

• Monthly rate = 8.6%/12 = 0.7167% or 0.007167
• EMI = [50,00,000 × 0.007167 × (1+0.007167)^240] / [(1+0.007167)^240 - 1] = ₹43,782

3. HDFC Bank Home Loan Features

Details: HDFC Bank offers home loans with competitive interest rates (typically 8.60% p.a. and above), flexible tenures up to 30 years, and loan amounts up to 90% of property value.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage (like 8.60), and loan tenure in years. The calculator will show monthly EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC's current home loan interest rate?
A: As of 2024, rates start from 8.60% p.a. for salaried individuals, but actual rates depend on loan amount, tenure, and applicant profile.

Q2: Does EMI remain constant throughout the loan tenure?
A: Yes, for fixed-rate loans. For floating-rate loans, EMI may change if interest rates change.

Q3: How does prepayment affect EMI?
A: Prepayment can either reduce EMI or loan tenure. HDFC allows prepayment but may charge fees for early closure.

Q4: What is the maximum home loan tenure HDFC offers?
A: Up to 30 years, subject to applicant's age (maximum age at loan maturity is 70 years).

Q5: Are there tax benefits on home loan EMI?
A: Yes, under Section 24(b) for interest (up to ₹2 lakh for self-occupied property) and Section 80C for principal repayment (up to ₹1.5 lakh).