1. What is Home Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. For home loans through Groww app, rates start at 6.70% p.a. for HDFC bank.

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 ÷ 12 ÷ 100)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for both principal repayment and interest payment components that change over the loan tenure.

3. About Groww App Home Loans

Details: Groww partners with banks like HDFC to offer home loans starting at 6.70% p.a. The app provides easy comparison of loan options, eligibility checks, and application processing.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate (default 6.70%), and loan tenure in years (1-30). The calculator shows EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the current home loan interest rate?
A: As per Groww app, rates start at 6.70% p.a. for HDFC, but actual rates depend on credit score, loan amount, and tenure.

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

Q3: Are there prepayment charges?
A: Most lenders allow partial prepayments after 6-12 months, with some charges. Full prepayment may have higher charges.

Q4: What factors affect loan eligibility?
A: Income, credit score, existing obligations, property value, and applicant age are key factors considered by lenders.

Q5: How accurate is this calculator?
A: It provides close estimates, but actual EMIs may vary slightly due to rounding and specific lender policies.