1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed amount paid by a borrower to a lender at a specified date each calendar month. For HDFC personal loans in India, EMI 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 (₹)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment required to repay a loan over a specified period, accounting for both principal and interest.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand repayment obligations, and choose the right loan tenure and amount for their budget.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate in percentage, and loan tenure in months. All values must be valid (principal > 0, interest rate > 0, tenure between 1-120 months).

5. Frequently Asked Questions (FAQ)

Q1: What factors affect EMI amount?
A: EMI depends on three main factors: principal amount, interest rate, and loan tenure. Higher principal or interest rate increases EMI, while longer tenure reduces EMI.

Q2: Are there any additional charges in HDFC personal loans?
A: HDFC may charge processing fees, prepayment charges, and other applicable fees which are not included in EMI calculation.

Q3: Can I prepay my HDFC personal loan?
A: Yes, HDFC allows prepayment of personal loans, usually after a certain period and may charge prepayment fees.

Q4: What is the typical interest rate for HDFC personal loans?
A: HDFC personal loan interest rates typically range from 10.5% to 24% per annum, depending on credit profile and other factors.

Q5: How does loan tenure affect total interest paid?
A: Longer tenure reduces EMI but increases total interest paid over the loan period. Shorter tenure increases EMI but reduces total interest cost.