A loan calculator generally means the tool which tells you the monthly installment. But some people do not know that this calculator can only be used for loans based on floating rate of interest only. HDFC Bank offers personal loan at floating rate of interest and hence using this calculator can be helpful.
HDFC Personal Loan EMI Calculator
When calculating Equated Monthly Installment, there is always an interest associated based on which it is calculated. This interest comes with two options, i.e. (i) Fixed rate and (ii) Floating rate. The borrower is generally given the option to choose between the type of rate based on which the EMI has to be calculated.
Floating rate is adjustable or flexible or variable rate. The interest rate under this category fluctuates based on the market- lending rate. Market lending rate or otherwise known as Marginal Cost of Lending Rate (MCLR) is based on multiple factors including the repayment ability.
The benchmark of MCLR is generally revised regularly by the banks according to the market conditions. At present, the MCLR for 1 year at HDFC Bank is 8.40%.
Let us understand it with an example:
On the basis of these details, you will get the graphical representation of the payments. For instance, if you put on the below details,
Loan amount- ₹10,00,000
Tenure- 5 years
Interest rate- 11.5% p.a
The detail of the payment is as follows:
Total Interest Payable- ₹3,19,557
HDFC Personal Loan Interest Rates
The bank has recently reduced personal loan interest rates. From now onwards, the lowest rate you can get is 11.25% to 21.25% per annum. The maximum loan amount for salaried is up to ₹25 lakhs and for self-employed is up to ₹15 lakhs.
HDFC Personal Loan Processing Fees
There is an additional processing fee applicable on personal loan which the borrower has to pay. This fee is deducted from the disbursed loan amount and after the deduction the left amount can be used by the borrower. This fee is 0.99%-2.50% of the loan amount and a minimum of ₹1,999. In addition to this, there is GST which is 18% of the processing fee which is deducted from the disbursed amount.
How much money do you get after all deductions for HDFC personal loan?
As you can see, the processing fee is deducted from the disbursed amount. In addition to this, GST and stamp duty is deducted which is ₹100. So, if your loan amount is ₹5 lakhs, the amount you will get to use after all deduction is:
Loan Amount Disbursed – ₹5 lakhs
Processing Fee – 2% of the loan amount = ₹10,000
GST = 18% of the processing fee = ₹1,800
Stamp Duty = ₹100
Total amount left = ₹5 lakhs – ₹10,000 – ₹1,800 – ₹100 = ₹4,88,100
With the above details, you must have understood how a personal loan EMI calculator HDFC is useful for you.