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)
• \( n \) — Loan term in months
• \( PMT \) — Monthly EMI payment (INR)

Note: HDFC personal loan rates start at 10.50% p.a. (as of 2023). Actual rates may vary based on credit profile.

3. Understanding Loan Components

Principal: The original sum of money borrowed.
Interest: The cost of borrowing the principal amount.
Tenure: The duration over which the loan is repaid.

4. Using the Calculator

Steps: Enter the principal amount in INR, annual interest rate (default is 10.50%), and loan term in years. The calculator will show your EMI, total interest, and total payment.

5. Frequently Asked Questions (FAQ)

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

Q2: How can I reduce my EMI?
A: You can opt for a longer tenure or negotiate a lower interest rate. However, longer tenures mean paying more interest overall.

Q3: Are there prepayment charges on HDFC loans?
A: HDFC may charge 2-5% for prepayment of fixed-rate loans. Floating-rate loans typically have no prepayment charges.

Q4: What is the minimum/maximum loan amount?
A: HDFC personal loans typically range from ₹50,000 to ₹40 lakh, depending on income and creditworthiness.

Q5: How is interest calculated?
A: Interest is calculated monthly on the reducing balance. Each EMI payment includes both principal and interest components.