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 Bank personal loans, EMIs are used to pay off both principal and interest each month.

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 spread equally over the loan tenure.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, plan their budget, and compare different loan options before borrowing.

4. Using the Calculator

Tips: Enter the principal 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 is HDFC Bank's current personal loan interest rate?
A: HDFC Bank's personal loan 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 Bank offers personal loans with tenures up to 60 months (5 years).

Q3: Are there any prepayment charges?
A: HDFC Bank 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 EMI amount?
A: EMI depends on principal amount, interest rate, and loan tenure. Processing fees may also affect total cost.