HDFC Bank gives access to an online tool when customers visit its website for personal loans. This product helps you get a lump sum amount without any collateral pledge. So if you need money, this will be an instant solution. Apply for the loan and get the amount in your account in ten seconds. You can borrow from INR 50,000 to INR 40 Lakhs. And what the HDFC Personal Loan tool does here is let you know about the repayment. Because in all this sometimes we forget the most important thing. Repayment plays a vital role in a personal loan. As there is no asset by which the bank will get its loan value back, there will be legal consequences. And if you don’t want to face this, know how to use the EMI calculator. You will learn everything about it in the post below.
How Does the EMI Calculator HDFC Bank Works?
The calculator will work on a mathematical formulae of –
EMI = P × r × (1 + r)n/((1 + r)n – 1)
EMI is the monthly installment that you need to pay, P is the amount you are going to borrow, r is the interest rate and n is tenure. If you try to calculate the EMI on paper using this formula, it will take time. Whereas the HDFC EMI Calculator will take a few moments and the EMI is on your screen.
Let’s See How the HDFC Calculator Displays Your EMI
With the below example you will learn how this tool will calculate the EMI and show it to you in a few seconds only.
Saroj is 36 years old and needs 5 Lakh to pay off her debts. While searching online for loans she came across the HDFC offer. There she finds this personal loan which seems interesting to her due to the lowest interest rate and the flexible repayment period. Before applying for the loan online she uses the EMI calculator where she chooses tenure as 5 years and interest rate as 12.00% per annum.
According to the calculations of the EMI calculator, Saroj gets an EMI of INR 11,122 and an interest of INR 1,67,333. Well, the interest payment is more than what Saroj has expected so she changes the value inside the calculator. This time she chooses the tenure of 36 months and an interest rate of 11.25% per annum. Now she gets an EMI of INR 16,429 and a total interest of INR 96,430.
You can see from the above example that the latter result of the EMI calculator is more affordable than the previous one. So Saroj chooses that tenure for her loan and meets the financial requirements.
Does the Tool Help During the Tenure
Yes, the HDFC Personal Loan EMI calculator also comes in handy when used for prepayment. This is a facility HDFC Bank provides you when you are done paying 12 EMIs of your loan. In this, you have to pay the remaining balance in a lump sum. By doing so you can save the remaining interest. As the borrower doesn’t have to pay the rest of the interest amount once he closes the loan. Check out the prepayment fee the bank will charge for you upon using this facility –
- Upon prepayment during 13 to 24 months the bank charges 4% of the principal outstanding amount. So using the calculator see what will be your balance at the end of the first year of the tenure and check the fees. If it suits your needs, choose this period for the closure.
- For 25 to 36 months the fee is 3% of the principal outstanding
- And after 36 months it is 2% of the principal outstanding
So use the HDFC Personal Loan EMI Calculator and solve your financial problems under budget. Because when this is under your control, there will be less chances of late and non-payment.