1. What is Home Loan Amortization?

Home loan amortization is the process of paying off a mortgage loan over time through regular payments. Each payment covers both interest and principal, with the interest portion decreasing and principal portion increasing over the loan term.

2. How Does the Calculator Work?

The calculator uses the standard amortization formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, accounting for compound interest.

3. HDFC Bank Home Loan Information

Details: HDFC Bank offers home loans with interest rates starting at 8.35% p.a. (as of current date). Loan terms typically range from 5 to 30 years, with loan amounts up to 90% of property value.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (8.35% is HDFC's starting rate), and loan term in years. The calculator will show your estimated monthly payment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC's current home loan interest rate?
A: Rates start at 8.35% p.a. but vary based on loan amount, tenure, and applicant profile. Check HDFC's website for current rates.

Q2: How does EMI change with interest rate changes?
A: For fixed-rate loans, EMI remains constant. For floating rates, EMI changes when interest rates change.

Q3: What is the maximum loan tenure HDFC offers?
A: Typically up to 30 years, subject to age norms (loan should generally mature by age 65-70).

Q4: Are there prepayment charges?
A: HDFC usually doesn't charge for prepayment of floating rate loans, but fixed-rate loans may have charges.

Q5: What factors affect loan eligibility?
A: Income, age, credit score, property value, and existing obligations are key factors HDFC considers.