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. It includes both principal and interest components.

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 and interest components for each month of 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 the current HDFC Bank personal loan interest rate?
A: HDFC Bank personal loan interest rates typically range from 10.50% to 21.00% per annum, depending on various factors.

Q2: How does EMI change with tenure?
A: Longer tenures result in smaller EMIs but higher total interest paid. Shorter tenures have higher EMIs but lower total interest.

Q3: Can I prepay my HDFC personal loan?
A: Yes, HDFC Bank allows prepayment after a certain period, usually with prepayment charges.

Q4: What factors affect personal loan eligibility?
A: Income, credit score, employment history, existing obligations, and relationship with the bank affect eligibility.

Q5: Are there any hidden charges?
A: HDFC Bank may charge processing fees (up to 2.5% of loan amount), prepayment charges, and late payment fees.