1. What is HDFC Home Loan Affordability?

The HDFC Home Loan Affordability Calculator helps you determine how much you can borrow based on your monthly repayment capacity. HDFC offers home loans with rates starting at 7.90% p.a. and requires a minimum income of ₹25,000.

2. How Does the Calculator Work?

The calculator uses the present value of annuity formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( PMT \) — Affordable monthly payment (INR)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Loan term in months

Explanation: The formula calculates the maximum loan amount you can afford based on your monthly payment capacity, interest rate, and loan term.

3. Importance of Affordability Calculation

Details: Calculating your home loan affordability helps in financial planning, ensures you don't overextend yourself, and gives you a realistic budget when house hunting.

4. Using the Calculator

Tips: Enter your comfortable monthly payment, current HDFC interest rate (default 7.90%), and desired loan term in years. The calculator will show the maximum loan amount you can afford.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC's minimum income requirement?
A: HDFC typically requires a minimum income of ₹25,000 per month for home loan eligibility.

Q2: What factors affect my loan eligibility?
A: Income, credit score, existing debts, property value, and interest rate all affect how much you can borrow.

Q3: How does interest rate affect affordability?
A: Higher interest rates reduce the loan amount you can afford for the same monthly payment, and vice versa.

Q4: What is the maximum loan term available?
A: HDFC typically offers home loans for up to 30 years, depending on your age at loan maturity.

Q5: Are there other costs to consider?
A: Yes, include processing fees, insurance, registration charges, and potential prepayment penalties in your budget.