HDFC home loan EMI can change in the future depending on an increase or decrease in interest rates if you have opted for a floating rate home loan. However, in the case of a fixed-rate home loan, the EMI will not change throughout the loan tenure. 

Let’s understand this better by looking into the factors that affect EMI:

The home loan EMI is determined by four major factors:

  1. Principal: The principal amount is the money that you borrow from the lender. In a home loan, the principal amount is a key factor that determines the EMI that you will pay towards repayment.
  2. Rate of interest: The interest rate is the rate at which a home loan is offered by banks to lenders. This factor determines your home loan EMI since the higher the interest rate, the more will be your EMI outflow every month. You must always do a market study of available interest rates by various lenders before deciding on one lender.
  3. Loan tenure: The loan tenure is the duration for which you have taken a loan from the bank until you repay it fully. The longer the loan duration, the lower will be the monthly EMI.
  4. Computation method: The method used by a bank to calculate the EMI is also an important factor that determines the EMI outflow.

HDFC bank allows borrowers to choose between fixed and floating interest rates for home loans. Borrowers can use an EMI calculator to determine the approximate EMI outflow based on the ongoing interest rates. This can help in better financial planning for the future.