1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates fixed monthly payments for loans with fixed interest rates. It considers the principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan term in months (years × 12)
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed payment needed each month to pay off the loan over its term, including both principal and interest components.

3. About HDFC Home Loans

Details: HDFC Bank offers home loans with competitive interest rates starting at 8.45% p.a., flexible repayment terms up to 30 years, and loan amounts tailored to property value and borrower eligibility.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 8.45 for 8.45%), and loan term in years (1-30). The calculator will show your EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is the current HDFC home loan interest rate?
A: Rates start at 8.45% p.a. (as of 2023) but vary based on loan amount, term, and borrower profile.

Q2: What is the maximum loan term available?
A: HDFC offers terms up to 30 years, subject to age criteria (loan must typically close by age 70).

Q3: Are there prepayment charges?
A: HDFC generally doesn't charge for prepayment from own funds, but may charge for foreclosure from other sources.

Q4: What is the loan-to-value ratio?
A: Typically up to 75-90% of property value, depending on loan amount and property type.

Q5: What documents are required?
A: Standard documents include ID proof, address proof, income proof, property documents, and bank statements.