1. What is the PMT Formula?

The PMT formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. It's the standard formula used by banks and financial institutions for amortizing loans.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Number of monthly payments (loan term in months)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the loan term, calculating equal monthly payments that will completely repay the loan by the end of the term.

3. About HDFC 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 12 to 60 months. Actual rates may vary based on credit profile.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.50 for 10.5%), and loan term in months (12-60). The calculator assumes fixed interest rates and equal monthly payments.

5. Frequently Asked Questions (FAQ)

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

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

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

Q4: Can I prepay my HDFC personal loan?
A: Yes, but prepayment charges may apply (usually 0-4% depending on loan tenure and timing).

Q5: How accurate is this calculator?
A: This provides an estimate. Actual payments may vary due to processing fees, GST, or floating rate changes.