1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

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 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components for each month.

3. About HDFC Personal Loans

Details: HDFC Bank offers personal loans starting at 10.50% p.a. interest rate with flexible tenure options from 12 to 60 months. Loans are available for salaried and self-employed individuals with quick approval process.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (default is 10.50%), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI depends on three factors - loan amount, interest rate, and loan tenure. Higher loan amounts or rates increase EMI, while longer tenures reduce EMI.

Q2: Can I prepay my HDFC personal loan?
A: Yes, HDFC allows prepayment after 6 EMIs with nominal charges. Prepayment can reduce your total interest burden.

Q3: What is the maximum loan amount I can get?
A: HDFC offers personal loans up to ₹40 lakhs depending on your income, credit score, and repayment capacity.

Q4: How is interest calculated on reducing balance?
A: Interest is calculated monthly on the outstanding principal, which reduces with each EMI payment.

Q5: What documents are needed for HDFC personal loan?
A: Typically requires identity proof, address proof, income documents, and bank statements. Salaried and self-employed have different requirements.