1. What is the HDFC Home Loan EMI Formula?

The HDFC Home Loan EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes each month to repay their home loan. HDFC currently offers home loans starting at 8.45% p.a. interest rate.

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 divided by 12 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for both principal repayment and interest payment components in each EMI.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their monthly financial commitment, plan their budget, and compare different loan offers.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (current HDFC rate starts at 8.45%), and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current HDFC home loan interest rate?
A: HDFC home loan rates currently start at 8.45% p.a., but may vary based 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: What factors affect home loan eligibility?
A: Income, credit score, existing obligations, property value, and applicant's age are key factors.

Q4: Are there prepayment charges?
A: HDFC typically doesn't charge for prepayment from own funds, but may charge for foreclosure from other sources.

Q5: What is the maximum loan tenure?
A: HDFC generally offers up to 30 years tenure, subject to age at loan maturity (typically 70-75 years).