1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment (PMT) required to repay a loan over a specified term. It considers the principal amount, interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the personal loan payment formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that covers both principal and interest each month.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and financial planning. It allows you to compare loan offers and determine affordability before borrowing.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (without % sign), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator work for HDFC Bank personal loans?
A: Yes, this calculator uses the standard formula for fixed-rate personal loans, including those offered by HDFC Bank in India.

Q2: Why is the title mentioning share price?
A: The title includes "share price" for SEO purposes, but this calculator specifically computes personal loan payments, not share-related calculations.

Q3: What's a typical interest rate for HDFC personal loans?
A: HDFC Bank personal loan interest rates typically range between 10.5% to 21% p.a., depending on credit profile and other factors.

Q4: Are there any hidden charges in HDFC personal loans?
A: HDFC may charge processing fees (up to 2.5% of loan amount) and other applicable taxes. These are not included in this calculation.

Q5: Can I prepay my HDFC personal loan?
A: Yes, but prepayment charges may apply (usually 0-5% of principal outstanding). Check current terms with HDFC Bank.