1. What is the HDFC Loan Calculator?

The HDFC Loan Calculator helps estimate monthly payments for personal loans in Nepal using the standard amortization formula. It calculates fixed monthly payments based on principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Total number of payments (loan term in months)
• \( PMT \) — Monthly payment amount (INR)

Explanation: This formula calculates the fixed monthly payment required to fully amortize a loan over its term, including both principal and interest components.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable before committing. It also allows comparison between different loan offers.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as a percentage (e.g., 12.5), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Nepal?
A: While it uses HDFC-style calculations, the formula is universal. Actual HDFC Nepal terms may vary based on current offers and policies.

Q2: Does this include any fees or insurance?
A: No, this calculates principal and interest only. Actual payments may include additional fees or insurance premiums.

Q3: How accurate is this calculator?
A: It provides a close estimate, but actual payments may differ slightly due to rounding or specific bank policies.

Q4: Can I use this for other types of loans?
A: This formula works for any fixed-rate amortizing loan, including home loans and car loans, with appropriate rate and term inputs.

Q5: How does changing the term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher monthly payments but lower total interest.