1. What is HDFC Home Loan Foreclosure?

The HDFC home loan foreclosure calculator helps determine the remaining balance on your home loan if you wish to close it before the completion of the loan term. HDFC offers home loans starting at 7.90% p.a. interest rate.

2. How Does the Calculator Work?

The calculator uses the HDFC foreclosure formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Total loan term in months
• \( k \) — Number of payments already made
• \( B \) — Remaining balance to be paid (INR)

Explanation: The formula calculates the outstanding principal by considering the interest paid in EMIs and the remaining payments.

3. Importance of Foreclosure Calculation

Details: Calculating the foreclosure amount helps borrowers understand the exact amount needed to close the loan early, including any foreclosure charges that may apply.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (starting at 7.90% for HDFC), loan term in years, and number of payments already made in months.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC's foreclosure policy?
A: HDFC allows foreclosure after 6 EMIs are paid, usually with a foreclosure charge of 2% of the outstanding amount.

Q2: Is partial foreclosure allowed?
A: Yes, HDFC allows partial prepayment which reduces the EMI or loan tenure.

Q3: How is interest calculated for foreclosure?
A: Interest is calculated on a daily reducing balance basis until the foreclosure date.

Q4: Are there tax benefits on foreclosure?
A: No tax benefits apply on the foreclosure amount, only on regular EMI payments.

Q5: How accurate is this calculator?
A: It provides a close estimate, but the exact amount may vary slightly due to daily interest calculation in actual practice.