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. This formula is commonly used for HDFC Life insurance-linked personal loans.

2. How Does the Calculator Work?

The calculator uses the loan payment 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 accounts for both principal repayment and interest charges, distributing payments equally over the loan term.

3. Importance of Loan Payment Calculation

Details: Accurate payment calculation helps borrowers understand their financial commitments and plan their budgets when taking HDFC Life insurance-linked personal loans.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does this differ from regular personal loans?
A: HDFC Life insurance-linked loans may have different terms or benefits compared to standard personal loans.

Q2: What's included in the monthly payment?
A: The payment includes both principal and interest components, calculated to fully repay the loan by term end.

Q3: Can I pay off the loan early?
A: Early repayment options depend on HDFC Life's specific loan terms and may involve prepayment charges.

Q4: How does insurance linkage affect the loan?
A: Insurance-linked loans may offer different interest rates or terms based on your policy details.

Q5: Are there any hidden charges?
A: Always check HDFC Life's loan terms for processing fees, insurance premiums, or other charges.