1. What is HDFC Personal Loan EMI?

The HDFC Personal Loan EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes each month to repay their personal loan from HDFC Bank. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly EMI payment
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan over the specified tenure, including interest at the given rate.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly repayment obligations, plan their finances accordingly, and compare different loan options before borrowing.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate in percentage, and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: Does HDFC charge any processing fee?
A: Yes, HDFC typically charges a processing fee of up to 2.5% of the loan amount plus GST. This isn't included in the EMI calculation.

Q3: Can I prepay my HDFC personal loan?
A: Yes, HDFC allows prepayment after 6 EMIs, usually with a prepayment charge of 2-4% of the principal outstanding.

Q4: How is interest calculated on HDFC personal loans?
A: HDFC uses reducing balance method where interest is calculated on the outstanding principal each month.

Q5: What is the typical interest rate for HDFC personal loans?
A: Rates typically range between 10.5% to 21% p.a. depending on credit score, income, and other factors.