1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. It consists of both principal and interest components.

2. How Does the EMI Calculator Work?

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 monthly payment that would pay off the loan over its term with interest.

3. Understanding Personal Loan EMI

Details: HDFC Bank personal loans typically have interest rates ranging from 10.50% to 21.00% per annum, with tenures from 12 to 60 months. Your EMI depends on the loan amount, interest rate, and repayment period.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (e.g., 10.50 for 10.5%), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my personal loan EMI?
A: Three main factors - loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q2: How does HDFC calculate interest on personal loans?
A: HDFC uses reducing balance method where interest is calculated on the outstanding principal each month.

Q3: Can I prepay my HDFC personal loan?
A: Yes, but prepayment charges may apply depending on your loan terms and when you prepay.

Q4: What is the maximum tenure for HDFC personal loans?
A: Typically up to 60 months (5 years), but may vary based on loan purpose and customer profile.

Q5: Are there any hidden charges in EMI calculation?
A: This calculator shows pure EMI. Actual loans may have processing fees, insurance, or other charges not included here.