HDFC Personal Loan Calculator
The HDFC personal loan EMI calculator is an extremely easy-to-use and user-friendly tool. Enter your preferred loan amount, interest rate, and tenure into the calculator, and you will be able to see your estimated monthly payment. Calculating your monthly installments beforehand can help you budget your finances in a better manner.
A personal loan is an unsecured loan offered by financial institutions. The loans are provided based on criteria such as employment history, repayment capacity, income level, profession, and credit history. A personal loan, which is also known as a consumer loan, is a multi-purpose loan. You can use the loan to meet any of your immediate needs.
EMI or Equated Monthly Installment is the amount that is payable per month, if you avail of a personal loan for a certain period. The EMI amount will be used to pay off both the principal loan amount and the personal loan interest over the loan tenure until the loan is paid in full. It is important to note that the EMI will remain the same throughout the tenure.
How Does The HDFC Personal Loan Calculator Work?
The standard formula for calculating the EMI amount is:
Where,
P is the principal personal loan amount
r is the rate of interest per month
n is the loan tenure in months
Example:
You need a personal loan of ₹8 lakhs for emergency purposes. The loan has an interest rate of 13% and a tenure of 5 years. You need to know how much EMI you will be paying per month so that you can see if it will fit your budget. We can calculate the EMI by using the calculator formula.
EMI = 8,00,000 x 0.13/12 x (1 + 0.13/12) ^60 / [(1 + 0.13/12)^60 - 1]
EMI = 8,00,000 x 0.01083 x 1.90847 / 0.90847
EMI = 16,534.9841 / 0.90847
EMI = ₹18,201 (approximately).
So, if you take a personal loan for ₹8 lakhs at an interest rate of 13% for a tenure of 5 years, your EMI will be around ₹18,201 every month.
How Should You Use The HDFC Personal Loan EMI Calculator?
Using the HDFC personal loan EMI calculator is easy and pretty straightforward. We have written a step-by-step guide on how you can use the personal loan EMI calculator.
- Key in the principal amount that you are looking to get.
- Then, enter the interest rate for the personal loan.
- The final step is to enter the tenure of your loan.
Once the details are entered, the calculator will let you know about the total loan amount, the principal amount, the interest amount, and the EMI amount.
Example:
Ms. Chandra is looking to take a personal loan of ₹5.5 lakhs at an interest rate of 14.5%. The tenure of the loan is 3 years. Let’s calculate the EMI amount using the above calculator formula.
EMI = 5,50,000 x 0.145/12 x (1 + 0.145/12)^36 / [(1 + 0.145/12)^36 - 1]
EMI = 5,50,000 x 0.01208 x 1.54075 / 0.54075
EMI = 10,236.743 / 0.54075
EMI = ₹18,931 (approximately).
Benefits Of Using The HDFC Personal Loan EMI Calculator
Below are some of the advantages of using the HDFC personal loan EMI calculator:
- The personal loan EMI calculator gives you a holistic idea regarding the total cost of your loan and based on that you can choose your personal loan product.
- When you use an EMI calculator, you can calculate your EMI in less than a minute.
- The calculators are extremely easy to use and 100% accurate.
- The calculator can help you compare different loan tenures to see which one is better suited for your financial health. If you are okay with paying higher EMI and would like to close your loan early, you can consider going for a shorter tenure. Otherwise, you can always choose a longer tenure.