HDFC Personal Loan Calculator

HDFC Personal loan EMI Calculator

What are EMIs?

EMIs or the Equated monthly installments are a fixed amount that needs to be paid every month by the borrower in case of a loan. The EMIs of any loan are fixed before the sanction of the loan.

This helps the borrower make an informed decision. The EMI of any loan is based on factors like the total loan amount, the rate of interest, and the tenure of the loan.

The borrower should ensure to pay the EMI amount in time to ensure a good credit record with the bank.

What is HDFC EMI?

The EMI repayment facility provided by the HDFC bank is the best way to take care of emergency personal expenses. They also provide Home and car loans with easy repayment through EMI.

If anyone is low on funds, they can apply for an HDFC loan. The loan pays the amount in full while converting it into EMIs for easy repayment by the borrower.

With a low rate of interest and tenure that suits everyone, HDFC EMI is the best option to take care of emergency personal expenses.

HDFC offers EMI options for all kinds of purchases such as Electronics, Apparel, Jewellery, or even furniture. Whatever is the loan amount, it is converted into EMIs, which are easily payable.

What is the HDFC EMI calculator?

EMIs are an important part of any loan repayment. In fact, it is the deciding factor for a person to go ahead with the loan.

To help the borrower make an informed decision, HDFC provides the EMI calculator that helps borrowers estimate the EMI amount before deciding on a loan.

The HDFC EMI calculator works by estimating the EMI amount that is to be paid every month. The borrower has to select options such as the type of loan, loan amount, and tenure.

The HDFC Personal Loan Calculator will provide an estimated EMI for that loan.

How to use the HDFC personal loan calculator?

For people looking for a loan, the EMI calculator for personal loan HDFC is a handy tool to estimate the EMI.

An EMI estimation before taking out a loan may help them make informed decisions. This is when the HDFC EMI calculator comes in Handy.

Customers can use the HDFC EMI calculator for personal loan HDFC on this page. There are three slides on the calculator to adjust the loan amount, the tenure date, and the rate of interest.

The customer can adjust the three slides based on their requirements. Once they click CALCULATE, they will be provided with an estimated EMI for the loan.

The calculator also provides a graph representing the loan amount and the interest component throughout the tenure.

For changing the EMI, the customer can adjust the slides accordingly. For example, if the estimated EMI is higher, increasing the tenure of the loan can help bring down the EMI.

If the customer can pay higher EMI, they can choose to lower the tenure of the loan. This also helps them save money on interest.

The rate of interest can also be adjusted based on the loan provider. The HDFC personal loan EMI calculator is extremely easy to use and helps borrowers decide on the loan before approaching the bank.

Advantages of using the EMI calculator HDFC

EMI calculators are the latest tool when it comes to personal loans. These EMI calculators help borrower adjust their EMI based on their requirements before approaching the bank for a loan.

Here are some advantages of using the EMI calculator HDFC - 

1. It is free to use-

The HDFC EMI calculator is an online free tool that borrowers can use as many times as they like. They have the option to adjust various parameters of the loan, to reach a suitable EMI.

They can also estimate the interest component of the loan and can change the rate of interest accordingly. 

2. It helps the borrower plan the repayment-

An EMI is a monthly installment that the borrower has to pay for the entire tenure of the loan. Therefore, it is important to plan the finances.

The HDFC EMI calculator provides the borrower with an estimated EMI, making it easy for the borrower to plan the repayment of the loan on time. 

3. It helps the borrower decide the tenure of the loan-

The HDFC EMI calculator is a perfect tool to help the borrower decide the loan tenure. Based on the EMI calculated, they can either increase or decrease the tenure.

If the estimated EMI is more, the tenure of the loan can be increased. This stretches the EMI and gives more time to repay.

In case the borrower can pay more EMI than estimated, they can reduce the tenure amount to save on interest charges. 

4. It saves time for the bank as well as the borrower-

To use the HDFC EMI calculator, the borrower does not have to visit the bank. It is a free online tool that they can use in the comfort of their homes.

It also saves time for the bank as they do not have to attend to the customers personally to address the issues regarding their EMIs. 

5. It shows details of the loan amount-

The HDFC EMI calculator not only helps borrowers estimate an EMI for their loan but also shows the details of the loan amount such as the interest component and the total loan amount paid during the tenure.

In fact, borrowers can find a detailed graph of the loan duration to estimate how much of the EMI is going towards the principal amount and how much of it is the interest. 

6. It provides an option to adjust the rate of interest-

The HDFC EMI calculator has an option to choose the rate of interest for a particular loan. Adjusting the rate of interest helps the borrowers understand the difference it makes in the EMIs.

A high rate of interest leads to a higher EMI and a lower rate of interest leads to a lower EMI, without adjusting the loan amount or the tenure.

This helps them negotiate the best rate of interest for their loan and choose a bank accordingly.

7. It is accurate-

The online HDFC EMI calculator is an accurate tool to help borrowers understand the EMI of a loan.

Therefore, they can rely on it to make an informed decision when availing of a loan.

Effect of loan pre-payment on your installment payments

Many borrowers wish to close their loans sooner than their tenure. This is called pre-payment of the loan.

Various banks have different terms and conditions when it comes to the prepayment of their loans.

However, it is important to understand how prepaying a personal loan can affect future installments.

Pre-payment of any loan can be done in two ways-

• Part pre-payment- Under this, the borrowers pay a part of the loan. They still need to continue paying EMI as usual for the rest of the loan amount.
  
  
• Full pre-payment- Under this, the borrower pays the entire loan amount in full before the end of the loan tenure.

Here is how part pre-payment of the loan affects the future installments-

• Part-payment of the loan amount reduces the principal amount as well as the interest rate, thereby bringing down the EMI. However, this only works if the part payment amount is substantial. Same part payments will not have a direct effect on the EMIs.
  
  
• Part payments can be done as many times as the borrower wishes during the tenure of the loan. Each time a part payment is done, the EMI reduces.
  
  
• Part pre-payment helps borrowers save on interest fees by reducing the loan tenure.

Different banks have different rules when it comes to part payment of the loan. If the borrower plans to make part pre payments to close the loan, they can discuss this with their banks to negotiate the terms. This helps the borrower save money on interest rates by revisiting the EMIs or reducing the tenure of the loan.

Here is how full prepayment affects the future loan installments-

• If the borrower makes a full repayment of the loan before the tenure, there will be no future installments.
  
  
• However, banks levy prepayment charges to foreclose the loan. This needs to be borne by the borrower as a one-time fee to close the loan.
  
  
• Full payment of the loans has a direct impact on the credit history of the borrower by improving their cibil score. 

However, it is important to understand that banks allow the pre-closure of the loan only after a certain period. For example, most banks allow pre-closure of the loan only after a year.

The borrower can ask the bank regarding this at the time of availing of the loan. Ultimately, they end up saving interest money if they repay the loan.

Factors that can impact a borrower’s due amount

When a borrower is considering a loan for a personal requirement, there are many factors to look into first. Things like the interest rate of the loan, the loan tenure, EMI to be paid every month, other charges, etc. Once they have secured a loan, the EMI should be paid each month.

As explained earlier, the EMI for any loan is calculated based on three major factors-

• The loan amount
  
  
• The Interest rate
  
  
• The loan tenure.

Based on these factors, the borrower needs to pay the required EMI every month. If the borrower is regular in payments, there will be no extra charges levied on them and the loan will be settled on time.

In certain cases, the borrower may want to make a bulk payment towards the loan. Though the amount is not enough to close the loan, it may significantly decrease the due amount.

What is a due amount?

A due amount is the outstanding loan amount that includes the principal amount and the interest component. This is the amount that the borrower still needs to pay to close the loan.

The due amount of a loan keeps changing as and when the borrower pays the EMIs.

Here are a few other factors that can impact a borrower’s due amount-

1. Timely payments-

If the borrower has paid his EMIs on time, the due amount will keep reducing. Missing EMIs will not only increase the due amount but also attract a penalty from the bank.

They also have a risk of lowering their credit score in case of regularly missed EMIs.

2. Bulk part payments-

If the borrower has made a few part payments amount during the loan tenure, it will reduce the due amount significantly.

Many banks offer the option to make part payments towards the loan apart from the monthly EMI.

Based on the terms of the loan, part payments help reduce the EMI as well as the tenure on the loan, thereby saving up on interest.

3. Rate of interest-

The interest rate of any loan is an important factor to determine the due amount. When it comes to repaying loans, the majority of the initial EMIs go towards interest.

It is the later EMIs where the substantial amount goes towards reducing the principal amount. Therefore, EMIs calculated depend on the interest rates.

The lower the interest rate, the lower the due amount. 

4. The loan amount-

The amount taken as a loan is another essential factor that impacts the due amount of the borrower. The loan amount due is made of two factors- the interest component and the principal component.

If the loan amount is more, the due amount will be more.

Factors that affect a personal loan interest rate

Personal loans are the best way to raise quick cash in case of emergencies. Also, personal loans are quite popular in the country as they do not require collateral.

They attract a high-interest rate because of their unsecured nature. However, there are ways to negotiate a lower interest rate with the bank.

Here are a few factors that can lead to a lower rate of interest for a personal loan-

1. The borrower’s income-

One of the important factors that affect the rate of interest that that borrower is offered by the bank is their income.

It is a common practice of banks to offer a lower rate of interest to borrowers who have high disposable incomes with steady jobs as they have a high repayment capacity.

Banks access this through the income proof documents that they collect at the time of applying for a loan.

2. The borrower’s debt-to-income ratio-

If the borrower has a high disposable income but has other active loans, this may work against their favor.

In such cases, the bank may charge high interest because the repayment capacity of such clients decreases.

Therefore, if the borrower is seeking a lower interest rate from the bank, they should make sure they do not have any active loans under their name.

3. Credit score-

A credit score is extremely important when it comes to sanctioning a loan. Most banks look for a credit score of more than 750.

If the borrower has a high credit score, the bank may offer a lower interest rate as their creditworthiness increases.

4. Relationship with the bank-

Many banks offer a low-interest rate to their existing customers, especially borrowers. This is where the trustworthy factor comes into play.

If the borrower is seeking a lower interest rate for their personal loan, they may want to apply in a bank they have regular business with.

They can also negotiate the terms of the loans as banks usually are lenient with loyal customers. 

Frequently Asked Questions

Q1. Are the calculators for home, car, and personal loans the same?

The calculators for all loans are the same on a basic level as all the EMI calculators show the EMI with an interest and the principal component.

However, these calculators have restrictions on the number of loans you can borrow. For example, a calculator for a personal loan will show the maximum amount as Rs 40,00,000/-

Though calculators are accurate to predict the EMI for your loan amount and tenure, there are many factors when it comes to loan sanctioning.

It is always better to discuss all the terms and conditions of pre-payment, loan closure, and other charges levied by the bank above the EMIs that you pay each month.

Q2. How do I calculate HDFC loan EMIs?

You can easily calculate an HDFC loan EMI using this online free EMI calculator. There are three parameters when it comes to a loan- the loan amount, tenure, and the interest rate.

Once you set all these parameters, you can click on calculate. The EMI calculator will calculate the interest and the principal component of the loan and fix an EMI that you will have each month.

You can adjust any of the parameters to reach an EMI that suits your budget. These EMI calculators are a good way to figure out an EMI for any loan you are planning you take.

It helps you plan your payments better.

Q3. What if I fail to pay my HDFC EMIs?

Missing your EMI payments attract a penalty fee of 1-2% of the due EMI. Also, defaulting on a personal loan can heavily impact your credit score.

Most banks require a credit score of 750 and above. Since your non-payment of the loan will reflect in your financial records, it will definitely affect your chances of getting a loan again from another borrower.

Paying your EMIs on time is important. If you are having difficulties in paying the EMI amount, you can always reach the bank and renegotiate the terms of your loan.

An increase in the tenure of the loan can help decrease your EMI, making it easier for you to pay off your loan.

Q4. What does an HDFC EMI consist of?

The EMI for your HDFC loan consists of two main components- The interest component and the principal component.

Therefore, your loan amount and the rate of interest along with the tenure of the loan will help decide your EMI.

The HDFC online EMI calculator will not only predict an EMI for your loan but will also show you a detailed graph regarding the details of your payment.

While repaying a loan, the interest component will make up a majority part of the initial EMIs. However, this changes as the later EMIs mostly go towards the principal amount.

Q5. Is the equated monthly installment shown by the calculator the same as that which the bank will ask me to pay?

Yes, the EMI shown in the EMI calculator will be the same that the bank will provide you if they approve the loan at the same interest rate.

However, other charges are levied by the bank like the processing fee, prepayment fee, or the penalty fee in case of non-payment. All these charges are not shown by the calculator and need to be discussed with the bank, before taking the loan. 

Also, once you start your loan, your future EMIs depend on the regularity of your EMI payments. Your future EMIs will increase if you have missed a fess EMIs, or decrease if you have made any bulk part payments towards your loan.