1. What is Home Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For home loans, EMI consists of 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 (annual rate divided by 12)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

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

3. Comparing HDFC vs SBI Rates

Current Rates: This calculator compares HDFC's 7.90% p.a. home loan rate with SBI's 7.50% p.a. rate (as of 2023). The difference in EMI and total payment helps borrowers evaluate options.

4. Using the Calculator

Tips: Enter loan amount in INR (minimum ₹100,000) and loan tenure in years (1-30 years). The calculator will show EMI for both banks, monthly difference, and total savings over loan term.

5. Frequently Asked Questions (FAQ)

Q1: Why compare HDFC and SBI home loans?
A: These are two of India's largest lenders with competitive rates. Comparing helps borrowers make informed decisions.

Q2: Are these rates fixed for entire tenure?
A: Typically no. Most home loans have floating rates that change with RBI repo rate adjustments.

Q3: What other charges should I consider?
A: Processing fees, prepayment charges, and insurance costs may vary between lenders.

Q4: How often do banks update their interest rates?
A: Banks may revise rates quarterly or when RBI changes policy rates.

Q5: Can I negotiate a better rate?
A: Yes, especially if you have good credit score, stable income, or existing relationship with the bank.