Dreams build over time and incite you to take steps towards the fruition. As I speak, dreams are not confined within the boundaries. In the times of constant innovation and changes, dreams also go for a change. In the previous times, getting the kids educated from prestigious universities must have been the dream of many parents in india. But now, a lavish wedding, a European expedition, buying the all-new sleek car model and others are figuring among the dreams of the people. The thing that has all the power to enable these dreams is a bank that provides a host of solutions for the same.
Among the banks, HDFC Bank, a trusted partner, could well help you accomplish the above goals and more powered by its personal loan offering. It offers the loan to fulfill all your wishes in the most convenient manner possible. Since the loan carries an interest rate, it is advisable you have an idea of the money that would go out from your pocket to HDFC Bank towards servicing the loan. You can develop the idea by glancing at HDFC Personal Loan EMI Calculator. So, before you apply for a personal loan, have a thorough look at the calculator.
What’s Great About HDFC Personal Loan?
It would be hard to understand the function of the calculator without knowing HDFC Personal Loan in detail. A maximum personal loan of ₹15 Lakh (self-employed) and ₹25 lakh (salaried) for a period of upto 5 years awaits at HDFC Bank. The interest rate charged ranges within 15.75%-20% per annum. A processing fee of upto 2.50% of the loan amount is charged. However, the fee ranges within ₹1,000-25,000. In case you have the funds to prepay the loan during the tenure of the loan, you can do so but a charge of 2%-4% of principal outstanding would get debited. However, the prepayment can’t be allowed before the payment of 12 EMIs.
Crux Of HDFC Personal Loan EMI Calculator
After a discussion on the bank’s personal loan offers, it’s time we head back to the calculator and find how it can help you in the best manner possible. Going by the name, it clearly suggests the schedule of EMI repayment. The EMI, which is a shortened form of Equated Monthly Installment, constitutes both principal and interest portions payable towards a personal loan.
The pivots of HDFC Personal Loan EMI Calculator are dependent on three critical points- Interest Rate, Loan Amount and the tenure of the loan. A slight up and down in any of the three can raise and lower the amount of EMI you are supposed to pay each month until the expiry of the loan tenure. The prospective borrowers like you need to enter all three elements and find the result before your eyes.
Principles of HDFC Personal Loan EMI Calculator
The interest rate, if remains on the higher side, will bring forth a greater sum of EMI for you to pay on a monthly basis. So, the focus should be to negotiate with HDFC Bank for a lower interest rate offering so that the quantum of EMI reduces to fit into your pocket.
Then comes the role of a loan amount to compute the EMI. If the amount of the loan is high, it’s obvious the monthly EMI liability will be more. The suggestion here would be to look at two things- your need and the savings, if any, accumulated over the years.
For example- You require a personal loan of ₹6 lakh and have a savings of ₹4 lakhs. Here, you can opt for a ₹5 lakh loan and withdraw a lakh from the savings volume to bring down the value of EMI. On a 5-year loan of ₹5 lakh at an interest rate of 15.75%-20%, the amount of EMI and interest outgo reduces by ₹2,418-2,649 and ₹45,112-58,963, respectively, compared to ₹6 lakh loan at the same interest rate and tenure. The red marked part is the eye-opener. An EMI reduction of ₹2,418-2,649 may seem that big, but when the interest outgo slashes by 45,112-58,963, it does make a difference to your pocket.
The tenure also has a relation with the amount of EMI that’s gonna be payable from your pocket. A longer tenure yields to a lower amount of EMI but the interest outgo will be much more. However, when you opt for a shorter tenure, the monthly EMI surges but importantly reduces the value of interest repayments. If you can bear a slightly higher EMI, there is no harm in opting a comparatively shorter tenure as it can give your pocket the relief it needs against the attack of elevating interest.
I hope, the complexities of HDFC Personal Loan EMI Calculator is best understood through this article. Apply for a personal loan online after you are clear with the concept of calculator.