How To Choose The Right Tenure With HDFC Personal Loan EMI Calculator?

HDFC Bank is one of the leading private banks in India from where customers can opt for different banking products. Personal Loan is one of the most popular ones because people need urgent money all the time to fulfill their needs. With personal loans, they don't need to submit any kind of collateral against the loan amount. A customer needs to repay the loan amount within a fixed tenure up to 60 months. Several people ask this question about what will be the role of HDFC Personal Loan Interest Rates in choosing the tenure?

Well, the first thing you should know is that you can choose any tenure according to your monthly income and repayment capacity. But the tenure you will choose will impact your EMI amount (repayment amount). So, by chance, if you choose the wrong tenure for yourself, you will have to face problems in repaying the loan amount on time. That's why it is important to choose the right tenure and role of HDFC Personal Loan Interest Rates while doing that. In this article, we will provide you an example to show how tenure impacts your EMI amount with the help of the HDFC Personal Loan EMI Calculator. Keep reading to know more!

Choose the Right Tenure with help of HDFC Home Loan EMI Calculator

First thing you should know that personal loan tenure inversely affects your EMI amount. On choosing a shorter tenure, your EMI amount will be higher but your interest outgo will be lower. Whereas if you choose a longer tenure, your EMI amount will be lower but your interest outgo will be quite high. That's why, if an individual wants to ensure substantial savings on his or her personal loan, they choose shorter tenure. Let's understand this thing with an example.

Suppose an individual wants to apply for an HDFC Personal Loan of INR 4 lakh at HDFC Personal Loan Interest Rates of 15.50% per annum. To understand the impact of tenure, we are taking two tenures — 3 years and 5 years.

On taking the tenure of 3 years, the EMI amount will be INR 13,964 and the interest outgo will be INR 1,02,714.

On the other hand, when we are considering the tenure of 60 months, you will need to pay a monthly installment of INR 9,660 while the interest outgo will be INR 1,77,277.

So, you can clearly see that when you are choosing the shorter tenure, your EMI amount is higher (around INR 4,000) as compared to choosing a longer tenure. Remember one thing that you should always choose the tenure according to your repayment capacity. If your monthly income doesn't allow you to choose a shorter tenure, choose a longer tenure, or decrease your loan amount so that you don't default.

All of the above calculations can be done by the HDFC Personal Loan EMI Calculator. Just put in a few details into the tool, and you will get the EMI amount, Interest Outgo, and Total Amount payable. It's wise to use this tool before finalizing your loan amount.

Factors affecting HDFC Personal Loan Interest Rates

Personal Loan Interest Rates tend to be on a higher side as compared to other Secured loans. The reason: its unsecured nature. As we told you earlier, customers don't need to pledge any kind of collateral against the loan amount. To minimize credit risk, interest rates may be a bit higher. But there are a few factors that can help you get lower HDFC personal loan interest rates. What are these factors? Well, we are showing them below. Please have a look.

1. Higher Monthly Income

2. Fewer to Nil Existing Obligations

3. Good Credit Score; which is considered to be 650 or above

4. Current Employment (working with a reputed MNC, etc.)

5. Existing Relationship with the bank

HDFC will assess these factors before finalizing the final interest rates for you. On finding them satisfactory, you can get lower personal loan interest rates.