How to Pay HDFC Personal Loan EMI Online?

What is EMI and how is it calculated?

Equated Monthly Installment (EMI) generally denotes the amount paid by a loan owner to the lender for the term of the loan. Be it any loan, the EMI is calculated on all loans. In case of an HDFC personal loan, the principle amount borrowed and the interest charged on the loan is added together and then divided by the number of months of repayment chosen by the borrower.

There are mainly two variables in EMI calculation, one being the principle amount, while the other is the interest rate charged by the bank. In the initial stage, the interest rate is higher; but eventually as the principle amount decreases, the interest rate also falls. This affects the amount of the EMI.

The main formula used in a HDFC personal loan EMI calculator is as follows:

Principle amount + interest rate charged

Tenure of the loan

Different Types of EMI

As the interest rate and the principle amount vary from bank to bank, you will see that HDFC personal loan also differs from other banks. There are two kinds of EMI rates that are prevalent among banks.

Fixed Rate EMI: This EMI depends on a fixed rate of interest, which remains the same throughout the tenure of the loan.

Floating Rate EMI: Depending on the floating rate of interest, this EMI can fluctuate as per the market and RBI decisions.

How to Operate an HDFC personal loan EMI calculator?

HDFC has introduced the EMI calculator for the convenience of the customer. This calculator automatically calculates the HDFC personal loan EMI, rather than a loan agent telling you the EMI amount or you calculating it manually.

To know how to operate it, here are the steps:

• Login to HDFC bank website.

• In products, go to loans and click the personal loans tab.

• Click HDFC personal loan EMI calculator.

• With the help of your mouse, slide the red buttons to increase or decrease the loan amount, interest rate and loan term as your preference.

• Once you have done that, you will see the monthly EMI for your loan amount on the right.

• You can check the graph to know the total EMI paid on a yearly basis along with the principle amount.

Once you have calculated your monthly EMI through HDFC personal loan EMI calculator, you are ready to go for the loan.

Ways of making payment online for HDFC personal loan EMI

In order to ensure the satisfaction of the customer, HDFC bank has introduced many different ways of paying HDFC personal loan EMI online.

Direct Debit Mandate: At the time of applying for an HDFC personal loan, you can give them instructions to directly debit your bank account on the payment due date. This ensures that you do not default on your HDFC personal loan EMI payments.

ECS/Standing instructions: In case you are an HDFC bank account holder, you can give ECS (Electronic Clearance Service) or a standing instruction for debiting the HDFC personal loan EMI on the due date.

HDFC personal loan EMI payments should always be done on time in order to avoid any late fee charges. Also, on time payments ensure better and enhanced credit score.