1. What is the HDFC Personal Loan Eligibility Formula?

The HDFC Personal Loan Eligibility Formula calculates the maximum loan amount (principal) you can borrow based on your affordable monthly payment, interest rate, and loan term. This helps determine your loan eligibility before applying.

2. How Does the Calculator Work?

The calculator uses the present value of annuity formula:

Where:

• \( P \) — Maximum loan amount (principal, INR)
• \( PMT \) — Affordable monthly payment (INR)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Total number of payments (months)

Explanation: The formula calculates the present value of a series of future payments (annuity) at a given interest rate.

3. Importance of Loan Eligibility Calculation

Details: Knowing your maximum eligible loan amount helps in financial planning, ensures you don't over-borrow, and improves your chances of loan approval.

4. Using the Calculator

Tips: Enter your comfortable monthly payment in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate for HDFC personal loans?
A: Interest rates typically range from 10.5% to 21% per annum depending on credit score, income, and other factors.

Q2: What is the maximum term for HDFC personal loans?
A: HDFC generally offers personal loans with terms up to 5 years (60 months).

Q3: Does this calculation include processing fees?
A: No, this calculates only the principal amount. Remember to account for 1-3% processing fees separately.

Q4: How accurate is this eligibility calculator?
A: This provides an estimate. Final eligibility depends on HDFC's assessment of your creditworthiness.

Q5: What factors affect my actual loan eligibility?
A: Income, credit score, existing debts, employment stability, and relationship with HDFC all affect final eligibility.