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. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Number of monthly payments
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula calculates the fixed monthly payment required to fully amortize a loan over its term.

3. Comparing HDFC vs SBI

Details: This calculator compares the EMI amounts for the same loan principal and tenure between HDFC and SBI home loan products, helping you identify which bank offers better rates.

4. Using the Calculator

Tips: Enter loan amount in INR, interest rates in percentage (per annum), and loan tenure in years. The calculator will show monthly EMI for both banks and the difference.

5. Frequently Asked Questions (FAQ)

Q1: Which bank typically offers lower rates?
A: Rates vary based on market conditions and borrower profile. SBI often has competitive rates for salaried individuals, while HDFC may offer better rates for high-value loans.

Q2: Does this include processing fees?
A: No, this calculator only compares EMI based on interest rates. Processing fees (0.25-1% of loan amount) should be considered separately.

Q3: Are there prepayment charges?
A: Both banks typically charge 2-5% for prepayment during fixed rate period. SBI often has lower prepayment charges.

Q4: What's better - fixed or floating rate?
A: Floating rates are generally recommended for long tenures (>10 years) as they benefit when rates fall. Fixed rates provide stability for short-medium terms.

Q5: How does credit score affect rates?
A: Both banks offer better rates (0.25-0.5% lower) for borrowers with CIBIL score >750 compared to those with 650-750.