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. This calculator compares EMIs between HDFC and SBI home loans based on their interest rates.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly payment (INR)

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

3. Importance of EMI Comparison

Details: Comparing EMIs between banks helps borrowers choose the most affordable loan option. Even small differences in interest rates can lead to significant savings over the loan tenure.

4. Using the Calculator

Tips: Enter the loan amount in INR, interest rates for both banks (as annual percentage), and loan tenure in years. The calculator will show monthly EMI for both banks and highlight which option is better.

5. Frequently Asked Questions (FAQ)

Q1: Why compare HDFC and SBI home loans?
A: Both are leading Indian banks with competitive home loan rates. Comparing helps find the best deal.

Q2: Does this include processing fees?
A: No, this calculator only compares EMIs based on interest rates. Actual loan cost should include processing fees and other charges.

Q3: Are interest rates fixed or floating?
A: The calculator assumes fixed rates. For floating rates, EMIs may change during the loan tenure.

Q4: What's the maximum loan tenure available?
A: Typically up to 30 years, depending on age and bank policies.

Q5: Can I prepay my home loan?
A: Most banks allow prepayment with certain conditions. Check with individual banks for their prepayment policies.