HDFC Bank gives you up to five years for the repayment. It is a decision you have to make. There is no limitation on the repayment period. The borrower has to choose a period which he/she finds comfortable paying the loan. Once decided, the loan application gets processed and the amount disbursed. Your date of repayment will be mentioned in the documents, so do read that to ensure regular payouts. There are payment modes like ECS, NACH and post-dated cheques that will help you make an automated payment. Do you have an HDFC Personal Loan? If yes, see how to manage the repayment of the borrowed amount in this article below.
Take Help from the EMI Calculator
When you visit the HDFC Personal Loan page, the first thing you will see will be the EMI calculator. It is a tool which generates your EMI based on the loan details you have entered. The HDFC Personal Loan interest rate begins from 10.25% onwards, it is one of the lowest rates on personal loans. So, use this tool to find what could be your monthly installments.
Well, the tool can be helpful both before and after the loan application. Before the loan application, you can choose the suitable tenure for the loan repayment. A tenure that offers lower EMI and interest payout. Check out the example below to see how to find a suitable loan tenure.
Shamita is looking to borrow a lump sum amount as her mother is diagnosed with Stage 2 Cancer and she needs money for the treatment. From one of her colleagues she heard about the HDFC Personal Loan, so she checks the same online. When she visits the bank site she sees the EMI calculator. Well, the management of daily expenses is also necessary along with the urgent lump sum needs. So Shamita uses the calculator to see what could be her EMI.
She enter the following details inside the calculator –
Loan Amount – 5 Lakh
Interest Rate – 11.25% per annum
Tenure – 4 years
The displayed EMI is INR 12,984. And the total interest payout is INR 1,23,210.
Now she re-enter the loan details –
Loan Amount – 5 Lakh
Interest Rate – 10.60% per annum
Tenure – 5 years
The EMI is INR 10,772 and interest is INR 1,46,304.
As you can see the four year tenure offers an affordable EMI as well as lower interest payment. So Shamita goes with that tenure.
What if I Haven’t Used the EMI Calculator?
It is not necessary to use the calculator. But it just works as a safety net for you. Because when you already have an idea about the repayment, it will be easy for you to plan the payments. And if you don’t use the tool, the EMI might not be what you have expected and this could create problems in your budget. To cope with it in situations like this, plan prepayment using the EMI calculator.
The calculator lets you know the loan balance after each year. So see when you could afford to repay the loan balance. Find the year, start investing your money. Because this way you will have enough lump sum to pay off the loan.
You should know HDFC allows you to do prepayment after 12 succsly EMI payments, so if you have met this criteria, only plan the prepayment.
Now you know the importance of HDFC Personal Loan EMI Calculator in the payment, so do use the tool. You can use it on your smartphone, laptop or desktop. So if you have a loan or going to get a loan from HDFC Bank, don’t forget to get assistance from the calculator as it will help you find the right period for repayment.