1. What is the HDFC Home Loan Repayment Formula?

The HDFC Home Loan Repayment Formula calculates the fixed monthly payment (EMI) required to repay a home loan over a specified term. It's based on the principal amount, interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Total number of monthly payments (years × 12)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that covers both principal and interest each month.

3. Importance of Loan Repayment Calculation

Details: Accurate EMI calculation helps borrowers understand their financial commitment, plan their budget, and compare different loan options before making a home purchase decision.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (HDFC rates start at 8.45% p.a.), and loan term in 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 2023, HDFC home loan rates start at 8.45% p.a. for salaried individuals, but actual rates may vary based on credit profile and loan amount.

Q2: How does loan tenure affect EMI?
A: Longer tenures reduce monthly EMI but increase total interest paid. Shorter tenures mean higher EMIs but lower total interest.

Q3: Are there any prepayment charges?
A: HDFC typically allows prepayment of floating rate loans without charges, but fixed rate loans may have prepayment penalties.

Q4: What factors affect home loan eligibility?
A: Income, credit score, existing obligations, property value, and applicant's age are key factors in loan approval and amount.

Q5: Can I get tax benefits on home loan?
A: Yes, under Section 80C (principal repayment) and Section 24 (interest payment) of Income Tax Act, subject to conditions.