Personal Loan Part Payment Calculator HDFC

Amortization Formula:

\[ Interest_k = Balance_{k-1} \times r \] \[ Principal_k = PMT + extra - Interest_k \] \[ Balance_k = Balance_{k-1} - Principal_k \]

Loan Amount (INR):

INR

Annual Interest Rate:

Loan Term:

months

Extra Payment (INR):

INR

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1. What is the Personal Loan Part Payment Calculator?

This calculator helps HDFC personal loan customers understand how making extra payments affects their loan amortization schedule. It shows the breakdown of principal and interest for each payment period when additional payments are made.

2. How Does the Calculator Work?

The calculator uses the standard amortization formulas:

\[ Interest_k = Balance_{k-1} \times r \] \[ Principal_k = PMT + extra - Interest_k \] \[ Balance_k = Balance_{k-1} - Principal_k \]

Where:

\( Interest_k \) — Interest portion of payment in period k (INR)
\( Principal_k \) — Principal portion of payment in period k (INR)
\( Balance_k \) — Remaining loan balance after period k (INR)
\( r \) — Monthly interest rate (decimal)
\( PMT \) — Regular monthly payment (INR)
\( extra \) — Additional payment amount (INR)

Explanation: The calculator first determines your regular monthly payment, then applies any extra payment to principal, recalculating the interest and balance for each period.

3. Importance of Part Payments

Details: Making part payments on your HDFC personal loan can significantly reduce your total interest paid and shorten your loan term. Even small additional payments can have a big impact over time.

4. Using the Calculator

Tips: Enter your loan amount, interest rate, loan term in months, and any additional payment you plan to make. The calculator will show your amortization schedule with the extra payments applied.

5. Frequently Asked Questions (FAQ)

Q1: How do extra payments affect my loan?
A: Extra payments reduce your principal faster, which decreases the total interest paid and may shorten your loan term.

Q2: Does HDFC charge for part payments?
A: HDFC may charge a prepayment penalty depending on your loan terms. Check your loan agreement for details.

Q3: When is the best time to make extra payments?
A: The earlier you make extra payments, the more interest you'll save. However, any time is beneficial.

Q4: Can I make recurring part payments?
A: Yes, HDFC allows recurring part payments. You can set this up through net banking or by visiting a branch.

Q5: How accurate is this calculator?
A: This provides estimates based on standard amortization formulas. For exact figures, consult your HDFC loan statement.