1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off along with interest.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal repayment and interest charges, ensuring the loan is paid off in full over the specified tenure.

3. About HDFC Bank EMI

Details: HDFC Bank offers EMI options on personal loans, home loans, car loans, and credit cards. Interest rates vary based on loan type, credit score, and current bank offers.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How does HDFC Bank calculate EMI?
A: HDFC Bank uses the standard EMI formula shown above, with interest rates based on your credit profile and loan type.

Q2: What is the minimum tenure for HDFC EMI?
A: Minimum tenure is typically 3 months for credit card EMIs and 12 months for most loans.

Q3: Are there prepayment charges on HDFC loans?
A: Prepayment charges vary by loan type. Home loans may have prepayment charges if paid from non-HDFC sources.

Q4: Can I change my EMI amount later?
A: Some HDFC loans allow EMI restructuring with possible charges. Credit card EMIs are generally fixed.

Q5: How accurate is this calculator?
A: This provides estimates. Actual EMIs may vary based on HDFC Bank's final approval terms.