hdfc personal loan

How Does the HDFC Personal Loan EMI Calculator Help You Pay Off Early?

HDFC Personal Loan EMI Calculator is an online tool that helps you know the Equated Monthly Installment (EMI). The generated result isn’t exact; it may differ from the actual due to the varied rate of interest at the time of booking. So, keep in mind that the EMI may slightly differ. To use this HDFC Personal Loan EMI calculator, the borrower needs basic loan information such as principal amount, interest rate and tenure. These three factors will determine the EMI amount. The tool uses a mathematical formula –  EMI = P × R × (1 + R)N/((1 + R)N – 1) to generate the EMI. But, do you know this tool can also help you pay off the loan early? If not, read this page below to know more about the HDFC Personal Loan EMI Calculator.

Where to Get Access to the HDFC Personal Loan Tool?

You can use the HDFC Personal Loan EMI Calculator on your smartphone by visiting the bank’s website. Go to its product section and select ‘personal loan’. On the loan page, you’ll see this calculator on the top. Enter your loan details as discussed above, and click on the ‘calculate’ button. Now, the EMI will be displayed and so will the other details like total payment and total interest payment. 

With all this information, you can start planning your repayment as well as prepayment. HDFC Bank allows prepayment of a personal loan post 12 continuous EMI payments. 

What Role Does an EMI Calculator Play in Prepayment?

Using the tool, you can find the period wherein the lump sum payment is possible for you. With the help of your annual bonus, incentive, investment, etc. collect a lump sum amount and choose a date for prepayment. The calculator will help you find the right time to do the same. The earlier you pay off the loan, the more you will save on the interest payout. So, if your financial need is met after getting the HDFC Personal Loan, use the calculator and start planning for prepayment. 

Fee You Need to Pay to HDFC Bank

For the foreclosure of an HDFC Personal Loan, you need to pay a fee charged basis the time at which you do a prepayment. So, the charges for prepayment done at these times are shown below –

  • 13 to 24 months – 4%
  • 25 to 36 months – 3% 
  • >36 months – 2%  

Note – The fee will be any of the above specific percentages of your loan balance. Suppose your loan balance is INR 5 Lakh and you do prepayment within 25 to 36 months, you need to pay a prepayment fee of INR 15,000. So, do the foreclosure only if it helps you reduce your interest payments.

Do Part Prepayment if You Can’t Afford Foreclosure

If you are unable to accumulate a lump sum amount for the foreclosure of the HDFC Personal Loan, you can do a part-prepayment. In this, you can pay up to 25% of the loan balance. By doing so, you can reduce the payment burden. This facility is available twice during the loan tenure and once in a financial year.

So, if it has been hard for you to pay the HDFC Personal Loan EMIs, do part prepayment. The same charge as for foreclosure will apply to part prepayment. But here, the charge will be levied on the prepaid amount and not the loan balance. 

What are the HDFC Bank Personal Loan Prepayment Terms and Conditions?

For a hassle-free prepayment experience, you need to meet the below conditions –

  • You need to pay a prepayment fee as charged by the bank
  • You are not allowed to prepay the loan in the first 12 months. However, this condition applies to salaried applicants only.
  • Visit the bank branch to discuss the same if you have any queries regarding the facility or call the toll-free number to connect with the service provider.

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