1. What is HDFC Personal Loan Interest?

HDFC Bank offers personal loans with interest rates starting at 10.50% per annum. The interest is calculated using simple interest formula based on principal amount, interest rate, and time period.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Annual interest rate (in decimal)
• \( t \) — Time period in years

Explanation: The interest is calculated as a percentage of the principal amount for each year of the loan term.

3. Importance of Interest Calculation

Details: Understanding the interest amount helps borrowers assess the total cost of the loan and compare different loan options before borrowing.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage (HDFC rates start at 10.50%), and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for HDFC personal loans?
A: HDFC Bank offers personal loans starting at 10.50% per annum, but actual rates may vary based on credit profile.

Q2: Is this simple interest or compound interest?
A: This calculator uses simple interest formula. HDFC personal loans typically use reducing balance method (compound interest) in practice.

Q3: What is the maximum loan amount from HDFC?
A: HDFC offers personal loans up to ₹40 lakhs depending on income and creditworthiness.

Q4: What factors affect HDFC personal loan interest rates?
A: Rates depend on credit score, income, employment type, loan amount, and tenure.

Q5: Are there any processing fees?
A: Yes, HDFC charges processing fees up to 2.50% of the loan amount plus GST.