1. What is the Monthly Payment Formula?

The monthly payment formula calculates the fixed payment amount required each month to repay a loan over its term, including interest. This is the standard formula used by banks for personal loan EMI calculations.

2. How Does the Calculator Work?

The calculator uses the monthly payment formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that pays off both principal and interest over time.

3. About HDFC Bank Personal Loans

Details: HDFC Bank offers personal loans with interest rates starting at 10.50% p.a. (as of 2023), with loan terms typically ranging from 1 to 7 years. Loan amounts can range from ₹50,000 up to ₹40 lakhs depending on eligibility.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (minimum 10.50%), and loan term in years (1-7). The calculator will show your estimated monthly EMI payment.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for HDFC personal loans?
A: HDFC Bank currently offers personal loans starting at 10.50% p.a. for eligible customers.

Q2: Are there any processing fees?
A: HDFC Bank typically charges up to 2.50% of the loan amount as processing fees, plus applicable GST.

Q3: What factors affect my personal loan interest rate?
A: Your credit score, income, employment history, relationship with the bank, and loan amount/duration all affect your offered rate.

Q4: Can I prepay my HDFC personal loan?
A: Yes, but prepayment charges may apply (usually 2-4% of principal outstanding) if done within the first year.

Q5: How accurate is this calculator?
A: This provides a close estimate, but your actual EMI may vary slightly due to rounding or specific bank policies.