HDFC Bank Loan EMI Calculator

Personal loans are among the most widely availed forms of credit in India. As of FY18, Indians had collectively taken personal loans amounting to ₹5.89 lakh crore, with an annual growth rate exceeding 20% year-over-year. These loans are popular due to their unsecured nature, offering quick access to funds for urgent financial needs.

HDFC is a key player in the personal loan segment, surpassing the national growth rate. Their personal loan portfolio grew by 41% from FY17 to FY18, reaching ₹41,000 crore. If you're considering a personal loan from HDFC, it's advisable to first calculate your EMI using the HDFC personal loan calculator.

The most crucial factor a borrower should consider before taking a loan is the EMI. Equated Monthly Installment (EMI) is the fixed amount a borrower must pay monthly to repay their loan. Since EMI calculations involve multiple variables, using the HDFC personal loan EMI calculator online can simplify the process and provide accurate estimates.

• An online EMI calculator provides precise calculations down to the last decimal, eliminating any risk of errors that could be detrimental to the borrower. Use this tool to determine the exact monthly payment before taking a loan.
• Manually calculating EMIs can be complex and time-consuming. An EMI calculator delivers precise results instantly, saving time and effort.
• EMI calculations vary based on the type of loan. The HDFC Personal Loan EMI calculator is designed exclusively for personal loans.
• You can enter different loan amounts to compare EMIs and choose a loan that aligns with your repayment capacity.

The following formula is used to calculate EMIs on personal loans–

EMI = {P * R * (1 + R) ^ N} / {(1 + R) ^ (N – 1)}

where

• P represents the principal amount or the loan amount
• R represents the interest rate
• N represents the repayment period in months

Let us take an example to help you better understand the process of EMI calculation.

Suppose Rajani applies for a personal loan of Rs. 7,00,000 from HDFC Bank, where the interest rate is 11.25%, and the tenure he chooses is 5 years. So, his payable EMIs will be determined in the following way:

Principal (P) = Rs. 7 Lakh
Interest Rate (R) = 0.1125/12 = 0.00937 per month
No. of EMIs = 5 x 12 = 60

Applying the above formula, EMI amount = 7,00,000 x [{0.00937 x (1 + 0.00937) ^ 60} / {(1 + 0.00937) ^60 – 1}] = Rs. 15,307

Hence, you have to pay an EMI of Rs. 15,307 for 5 years or 60 months.

The following individuals qualify to apply for an HDFC personal loan:

• Employees of private limited companies and those working in public sector undertakings, including central, state, and local government bodies
• Individuals between 21 and 60 years of age
• Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer
• Individuals who earn a minimum of 25,000 net income per month

• Maintain a high credit score: A credit score above 750 points builds trust among loan lenders and helps you get loans quickly
• Good CIBIL score: In case your CIBIL score is not at par, try to limit your credit utilisation and avoid taking any new loans till the score revives
• Reduce debt-to-income ratio
• Opt for a longer tenure
• Avoid multiple loan applications

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