1. What is EMI?

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

2. How EMI Calculation Works

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
• \( EMI \) — Equated Monthly Installment (INR)

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified tenure with compound interest.

3. About HDFC Home Loans

Details: HDFC Bank offers home loans with competitive interest rates, flexible tenures (up to 30 years), and loan amounts up to 90% of property value. Interest rates typically range from 8.60% to 9.50% p.a. (as of 2024).

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 8.60 for 8.60%), and loan tenure in months (e.g., 240 for 20 years). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current HDFC home loan interest rate?
A: As of 2024, HDFC home loan rates range from 8.60% to 9.50% p.a. depending on loan amount, tenure, and borrower profile.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there prepayment charges?
A: HDFC typically charges 0-2% for prepayment from own funds, but no charges for foreclosure from other sources.

Q4: What factors affect home loan eligibility?
A: Income, age, credit score, existing obligations, property value, and loan-to-value ratio.

Q5: How accurate is this calculator?
A: This provides standard EMI calculation. Actual EMI may vary slightly due to rounding and specific bank policies.