Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. And, of course, HDFC's main concern is to make sure you can comfortably repay the amount you borrow. Interest is calculated on annual rests. Annual rest means the principal repayments are credited at the end of HDFC's financial year. The effective rate of interest varies depending on the term of the loan.
Interest is calculated on annual rests.
Principal repayments are credited at the end of HDFC's financial year. Repayment by way of EMI commences from the month following the month in which you take full disbursement. Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. The size of the monthly instalment comprising principal and interest depends on the quantum of the loan, the interest rate applicable and the term of the loan.