How to Use HDFC Personal Loan EMI Calculator? Learn in this Session

By Internal Eseo - February 08, 2018

Life’s all about the happiness and disappointment. Though we all want to boat the ride of the former, not everyone’s able to do so practically, resulting in the latter. But the one that gives happiness and becomes a friend in times of disappointment or  mishappenings is a personal loan, which you can get from banks near to your home. It’s one thing that lets you experience the charisma of Swiss locales and gives you instant cash in times of urgency. And if you are looking for reliable banking partners in your bid to fulfill your personal needs, HDFC Bank would emerge as a top option.

The brand HDFC sells and a primary reason for the same is its presence everywhere in the country. Be it the top cities like Delhi and Mumbai or the smaller ones like Ambala and Aligarh, you will find HDFC Bank branches to bank with. In the case of a personal loan, one often bothers about the installment they are likely to pay to the lender. HDFC Bank Personal Loan is there to show you the repayment schedule so that you can budget your spends and enjoy an easy and pocket-friendly personal loan. Why not then study the function of HDFC Personal Loan EMI Calculator?

How Does HDFC Personal Loan EMI Calculator Perform its Operation?

Let me tell you upfront that you don’t need to calculate the EMI on your own. The calculator is there online to do that. It just needs entries of a loan amount, interest rate and tenure to accomplish the work of computing the installment. The installment, in actual terms, is the sum total of principal and interest portions to be paid over the course of a loan. The burden of EMI reduces when the interest rates are on the lower side and pinches when the rates are higher. HDFC Personal Loan Interest Rates range from 14.75%-20.75% per annum.

Even the loan amount has a direct relationship with the EMI. A bigger loan amount leads to greater EMIs and vice-versa. But the third part tenure has an indirect connection with the EMI. What’s that, you may be asking, right? A longer tenure results in lower EMIs compared to a shorter tenure. But that doesn’t mean you should go for a longer tenure of 5 years, the maximum time given to pay off a personal loan. It’s because the interest repayment would become much more in a longer loan tenure. This can be saved greatly by choosing a comparatively shorter tenure. An example below will shed more lights.

Example - Shyam and Sakshi are two best friends in and off the office. Both of them earn 50,000 per month and want a loan of around 4 lakh for their European expedition. While Shyam chose a 5-year loan, Sakshi went for 4 years. The interest rate offered was 15% in each of the two cases. Even though Shyam needs to pay a lower installment of 9,516 than Sakshi’s 11,132, his interest repayment of 1,70,958 seems less attractive than her friend’s 1,34,350. All in all, Sakshi emerges a clear winner by choosing a 4-year loan tenure.

How to Negotiate for a Lower Interest Rate?

For the equated monthly installments (EMIs) to be affordable, it’s important to grab a lower rate deal with HDFC Bank. The points on which you can demand lower rates include a healthy income, higher repayment potential, credit history, existing banking relationship, if any. All these factors instill belief in the lenders like HDFC Bank about your creditworthiness. If you are already banking with HDFC Bank, you stand a chance to grab lower rates, resulting in reduced EMIs and the overall interest outgo.

So, you saw a complete detail of HDFC Personal Loan EMI Calculator, its impacts on the installment and your overall finance. Keep experimenting with figures to choose a right loan offer of HDFC Bank so that the years of repayment won’t hurt you financially.

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