1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment (EMI) required to repay a loan over a specified term. HDFC Finance offers personal loans with interest rates starting at 10.50% p.a.

2. How Does the Calculator Work?

The calculator uses the standard PMT formula:

Where:

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

Explanation: The formula accounts for compound interest and spreads the repayment equally over the loan term.

3. About HDFC Finance Personal Loans

Details: HDFC Finance offers personal loans from ₹50,000 up to ₹40 lakhs with flexible repayment terms from 1 to 7 years. Interest rates start at 10.50% p.a. for eligible customers.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (10.50% to 30%), and loan term in years (1-7). The calculator will show your estimated EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum loan amount from HDFC Finance?
A: HDFC Finance offers personal loans starting from ₹50,000, depending on eligibility.

Q2: What is the maximum repayment period?
A: The maximum repayment period is 7 years (84 months) for personal loans.

Q3: Are there any prepayment charges?
A: HDFC Finance may charge prepayment penalties depending on the loan terms and timing of prepayment.

Q4: What factors affect loan eligibility?
A: Income, credit score, employment history, existing obligations, and relationship with HDFC Finance affect eligibility.

Q5: How can I reduce my EMI amount?
A: You can reduce EMI by either opting for a longer tenure or negotiating a lower interest rate based on your credit profile.