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. EMIs are used to pay off both interest and principal each month so that over the loan tenure, the loan is paid off in full.

2. How Does the 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 payment amount that includes both principal repayment and interest charges.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before borrowing.

4. Using the Calculator

Tips: Enter the 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: What is the typical interest rate for HDFC personal loans?
A: HDFC personal loan interest rates typically range from 10.50% to 21.00% per annum, depending on the borrower's profile.

Q2: What is the maximum tenure for HDFC personal loans?
A: HDFC offers personal loans with tenures up to 60 months (5 years).

Q3: Are there any prepayment charges?
A: HDFC may charge 0-4% of the principal outstanding as prepayment charges, depending on the loan terms.

Q4: How can I reduce my EMI burden?
A: You can reduce EMI by either negotiating a lower interest rate, opting for a longer tenure, or making a partial prepayment.

Q5: Does this calculator include processing fees?
A: No, this calculator shows only the EMI based on principal and interest. Processing fees (typically 0.5-2.5% of loan amount) would be additional.