1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For HDFC credit card personal loans, this includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified period.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, comparing loan options, and ensuring the repayment fits your monthly budget before committing to a credit card personal loan.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for HDFC credit card personal loans?
A: HDFC typically offers APRs between 12% to 36% depending on credit score, loan amount, and tenure.

Q2: Are there any processing fees for HDFC personal loans?
A: Yes, HDFC usually charges 2-3% of the loan amount as processing fee plus applicable taxes.

Q3: Can I prepay my HDFC personal loan?
A: Yes, but prepayment charges may apply (usually 2-5% of outstanding principal) if prepaid within first 6-12 months.

Q4: How does increasing tenure affect my EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q5: Is this calculator accurate for all HDFC personal loans?
A: This provides a close estimate, but actual EMI may vary slightly due to rounding and specific loan terms.