1. What is HDFC-style Home Loan Eligibility?

The HDFC-style home loan eligibility calculator determines the maximum loan amount you can qualify for based on your monthly repayment capacity, interest rate, and loan term. It uses standard amortization principles to calculate loan eligibility.

2. How Does the Calculator Work?

The calculator uses the standard loan formula:

Where:

• \( P \) — Principal loan amount (LKR)
• \( PMT \) — Affordable monthly payment (LKR)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Total number of payments (months)

Explanation: The equation calculates the present value of an annuity (the loan amount) based on regular payments, interest rate, and term.

3. Importance of Loan Eligibility Calculation

Details: Knowing your maximum loan eligibility helps in budgeting and property selection. It ensures you look at properties within your financial capacity and helps in financial planning.

4. Using the Calculator

Tips: Enter your comfortable monthly payment in LKR, the annual interest rate (%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this specific to HDFC Bank Sri Lanka?
A: While based on HDFC's calculation method, this is a general calculator not specific to any bank or country.

Q2: What factors affect loan eligibility?
A: Key factors include income, existing debts, interest rate, loan term, and the bank's lending policies.

Q3: Does this include other charges like insurance?
A: No, this calculates principal eligibility only. Additional costs like insurance or processing fees would reduce actual loan amount.

Q4: How accurate is this calculator?
A: It provides a good estimate, but actual eligibility may vary based on bank policies and your credit profile.

Q5: Can I increase my loan eligibility?
A: You can increase eligibility by opting for a longer term, higher monthly payment, or finding a lower interest rate.