1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays each month to repay a loan. HDFC Bank and most financial institutions use this standard formula for personal loans.

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 ÷ 12, as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula accounts for both principal repayment and interest payment components that change over the loan tenure while keeping the EMI amount constant.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly repayment obligations, compare loan offers, and plan their finances accordingly before committing to a loan.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.50 for 10.5%), and loan tenure in months (1-84 months for HDFC personal loans). 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% p.a., depending on applicant's credit profile.

Q2: What is the maximum tenure for HDFC personal loans?
A: HDFC offers personal loans with tenures up to 84 months (7 years), subject to eligibility.

Q3: Are there any prepayment charges?
A: HDFC may charge 0-4% prepayment penalty depending on loan terms and prepayment timing.

Q4: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q5: What factors affect personal loan eligibility?
A: Income, credit score, existing obligations, employment stability, and relationship with HDFC Bank.