HDFC Personal Loan EMI Calculator

HDFC Personal Loan EMI Calculation Formula

It is possible to calculate your HDFC personal loan EMI manually without using a calculator. Below is the formula for EMI calculation.

EMI = [P x R x (1+R)^N] / [ ((1+R)^N) - 1]

Where:

EMI = Equated Monthly Installment,

P = Principal loan amount,

R = Interest rate, and

N = Repayment tenure in months.

For example, for a loan of ₹5,00,000 with an annual interest rate of 12% and a 5-year tenure (60 months) the EMI can be calculated as:

EMI = [₹5,00,000 x (0.01) x (1+0.01)^60] / [(1+0.01)^60-1]

EMI = [₹5,00,000 x 0.01 x 1.647009] / [1.647009-1]

EMI ≈ [₹5,000 x 1.647009] / 0.647009

EMI ≈ ₹8,235.045 / 0.647009

EMI ≈ ₹12,747

So, the EMI for a ₹5,00,000 loan with an annual interest rate of 12% and a 5-year tenure (60 months) is approximately ₹12,747.

HDFC Personal Loan EMI Calculation for 5 Years

Refer to the table below to see the EMI Calculation for HDFC Personal Loan of ₹1,00,000 at an interest of 11% per annum and repayment tenure from 1 to 5 years.

How Does HDFC Personal Loan Calculator Work?

The HDFC Personal Loan Calculator works by using the same mathematical formula mentioned above to calculate the Equated Monthly Installment (EMI) based on the loan amount, interest rate, and tenure provided by the user.

HDFC loan EMI calculator is extremely user-friendly. Follow the below steps to get precise monthly installment figures:

Step 1: Input the desired loan amount.

Step 2: Feed in the interest rate.

Step 3: Specify the repayment period in months.

Step 4: View the results in a clear graphical presentation.

Advantage of using Buddy Loan EMI Calculator

Want to know how Buddy Loan EMI calculator can make your loan experience better? Check out the multiple ways this calculator can be advantageous in your financial planning.

Accuracy: EMI calculators provide precise monthly installment figures, eliminating human calculation errors.

Time-Saving: Calculations that could take a long time manually are done instantly with an EMI calculator.

Comparison: Allows for easy comparison of loan options with different tenures and interest rates.

Budgeting: Helps borrowers determine if the EMI fits comfortably within their budget.

Savings Evaluation: Helps assess the impact of prepayments or changes in loan parameters on the overall cost of the loan.

Quick Decision-Making: Enables borrowers to make informed decisions about loan affordability and suitability.

Factors Affecting HDFC Personal Loan EMI

Like any other loan EMI, HDFC personal loan EMI is also influenced by several factors. Given are the major factors that may affect your equated monthly installments:

Loan Amount: The principal loan amount you borrow significantly impacts the EMI. Higher loan amounts result in larger EMIs.

Interest Rate: A higher interest rate increases the EMI, while lower rates lead to more affordable monthly installments.

Loan Tenure: Extending the loan tenure reduces the EMI amount, but increases the total interest paid. Shorter tenures result in higher EMIs but lower overall interest costs.

Additional Charges: Any processing fees, prepayment charges, or other fees added to the loan can affect the EMI amount.

Credit Score: Your creditworthiness plays a role in determining the interest rate offered by HDFC. A better credit score may lead to a lower interest rate and EMI.

Tips to Plan Your Loan With HDFC EMI Calculator

HDFC bank personal loan EMI calculator can help you plan your finances well and make way for a hassle-free loan journey. Read the tips below on how to plan your loan with HDFC EMI calculator.

Precise Loan Assessment: Use the calculator to determine the right loan amount, tenure, and interest rate.

Budget Alignment: Ensure the calculated EMI fits comfortably within your monthly budget.

Comparison of Loan Offers: Utilise the calculator to compare HDFC's various loan options.

Prepayment Strategy: Estimate potential interest savings with the calculator for early repayment plans.

Affordability Evaluation: Understand your loan's affordability by adjusting calculator parameters for informed decisions.