1. What is the HDFC Personal Loan Calculator?

The HDFC Personal Loan Calculator helps estimate monthly payments for personal loans linked to HDFC credit cards, with interest rates starting at 10.50% p.a. It uses the standard loan amortization formula to calculate payments.

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)
• \( n \) — Number of monthly payments
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term, including both principal and interest components.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable before committing. It also helps compare different loan offers.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (minimum 10.5%), and loan term in months (1-60 months typical for personal loans). All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for HDFC personal loans?
A: Rates start at 10.50% p.a. for credit card holders, but your actual rate may be higher based on creditworthiness.

Q2: What is the maximum loan term available?
A: HDFC typically offers personal loans with terms up to 60 months (5 years).

Q3: Are there any processing fees?
A: HDFC may charge processing fees up to 2.5% of the loan amount plus applicable taxes.

Q4: Can I prepay the loan?
A: Yes, but prepayment charges may apply if done within the first 12 months (typically 4% of principal outstanding).

Q5: How accurate is this calculator?
A: This provides estimates only. Final loan terms may vary based on HDFC's assessment of your application.