HDFC personal loan EMI Calculator is such a tool that will help you get a foresight of your repayment. Using this tool one can see what is going to be his/her total EMIs, interest and principal payments. And with this, you can plan HDFC Personal Loan Prepayment. The bank allows you to prepay the loan after 1 2 continuous EMI payments. Read this page below and know when and how to use the HDFC Personal Loan EMI Calculator.
Steps to Follow for Using HDFC Personal Loan EMI Calculator
To use HDFC Personal Loan EMI Calculator, you need to follow the below steps –
- Visit the official website of HDFC Bank on your smartphone
- Select the ‘Borrow’ option from the top bar
- Click on ‘Personal Loan’ from the dropdown
- When you’re at the HDFC Personal Loan page, you can see the EMI Calculator at the top of the page
- Use the slides to insert your loan details
- After that, click on the ‘Calculate’ button
When you complete the above process, the EMI will display on your screen.
Right Time to Use the HDFC Personal Loan EMI Calculator
You can use the HDFC Personal Loan EMI Calculator before getting the loan or during the tenure as well. It is important to use the calculator before getting a loan from HDFC Bank as it helps you choose the tenure. HDFC Personal Loan tenure ranges from 12 to 60 months. You can choose a tenure that best fits you.
Because a longer tenure is a promise that you have to continue for at least five years. And not everyone is comfortable paying off a personal loan for such a long period. This is why HDFC Personal Loan EMI Calculator is introduced, so one can select the tenure according to their affordability and needs. This way, you can start investing money for prepayment from the very moment you apply for the HDFC Personal Loan.
Is there any Charge Applicable to HDFC Personal Loan Prepayment?
Yes, the bank charges a fee for the prepayment, and it ranges from 2-4% of the principal outstanding plus taxes. The earlier you prepay the HDFC Personal Loan, the higher this charge will be. So, choose a period where this charge is less. The fee may differ depending on whether you’re doing part or full prepayment. In the case of a part prepayment, the bank will charge a fee on the prepaid amount –
- 13-24 months – 4%
- 25-36 months – 3%
- More than 36 months – 2%
The part prepayment is limited to 25% of the loan balance. And you can do this only twice during the loan tenure and once a financial year.
Whereas, in the case of full prepayment, the fee will apply to the principal outstanding as follows –
- 13-24 months – 4%
- 25-36 months – 3%
- More than 36 months – 2%
So, do add the prepayment fee while calculating your savings.
Illustration of the HDFC Personal Loan Prepayment
With this example, you will understand how HDFC Personal Loan EMI Calculator helps in prepayment savings calculation. Let’s discuss part prepayment in the below example.
Sagar is paying an EMI of 6,521 for a loan of INR 3 Lakh and the tenure is 5 years. Now, to reduce the payments, he decides to part pay the loan. Well, before doing the same, he uses the EMI Calculator and checks when he can afford to pay the loan. Below are the loan outstanding after each year of repayment –
- 1st – INR 2,52,363
- 2nd – INR 1,99,218
- 3rd – INR 1,39,931
- 4th – INR 73,788
He can afford to pay INR 15,000. And this will reduce the loan balance at the end of the 2nd year. So, Sagar will be paying INR 15,449 including the part payment fee.
After this, the loan balance will be INR 1,84,219 and EMI is INR 6,494. Earlier, the total interest payment was INR 91,275 and now it is 58,103. The EMI and interest are reduced as the tenure is now 33 months.
Read Also: SBI Personal Loan EMI Calculator Benefits.
