HDFC Bank is currently ruling India’s lending space with its credit gamut fast becoming the household names. From the lending products it offers, personal loans gain most of the traction because of its fast and easy availability.
What favours the adoption is the attractive rates offered to the customers. And, if you combine the best-in-class services, you would only vouch for HDFC Personal Loan. But many borrowers just see the interest rate and apply without even checking the cost via EMI calculator. Doing this can worsen your credit life cycle. Let’s check out how HDFC Personal Loan EMI Calculator would help you enjoy a smooth repayment while keeping the hassles away.
How Does HDFC Personal Loan EMI Calculator Perform?
The operation of the calculator depends on three aspects i.e. loan amount, interest rate and tenure. On a general note, greater the loan amount and interest rate more would be the EMI and vice-versa.
In contrast, the third element of tenure has an inverse relation with the EMI. Longer the tenure, lower would be the EMI and vice-versa. But, will it be worth going for a long tenure to reduce the EMI, which stands for Equated Monthly Installment? Well, the tenure must not be the maximum offered by HDFC while also not being too short.
The longest tenure can result in a greater interest payout compared to a shorter one. A very short tenure does curtail the interest payment considerably but can hike the EMI too much for you to repay on time. And, if the delay does happen, late payment charges would be deducted. Late payment, when getting frequent, could also eat into your credit score. Therefore, choose a tenure that is relatively shorter to accommodate the EMI rise while also keeping a lid on the interest outflow.
HDFC Personal Loan Interest Rate 2018
HDFC Bank personal loan interest rates range from 15%-20.99% per annum for a maximum of 5 years. The maximum loan can be as much as ₹40 lakhs.
Let’s Calculate with HDFC Personal Loan EMI Calculator
Assume you apply for a personal loan of ₹12 lakhs for 4 years. The rate of interest offered to you is 17% per annum. In this case, you are supposed to pay an EMI of ₹34,626. The installments would lead to an interest payout of ₹4,62,050 over a period of 4 years.
Should You Look at HDFC Personal Loan Amortization Schedule?
Yes, you should, to get a view of the principal and interest repayments likely to be made over the course of a loan. Not only that, you also get to see the outstanding loan balance at the end of every year. This only helps you get a track of the loan smartly. Actually, the amortization is an extension of the EMI calculator.
On using the calculator online, you can also see below an amortization schedule showing the repayment summary and outstanding balance. So, you should check the schedule in advance, copy the same and save it on your online documents for future use.
As you move along in your repayment life, you can request for the schedule from HDFC personal loan and match it with that being saved in the document. If there are mismatches, do call the bank official to know the reasons for the same.