Personal Loans are one of the most popular sources of finance due to the various benefits provided by them. Not only do they help you take care of any financial emergency but also ensure that there is no unnecessary pressure on your finances. Being unsecured, Personal Loans offer you greater flexibility and can be used for any purpose that you may deem fit. There is no need to inform the lender regarding the end use of money. The usual repayment tenure against a Personal Loan is 60 months, and the rate of interest starts range around 10.99%.
With the rapid integration of technology in the financial services sector, you can conveniently apply for a Personal Loan using online channels and get the money in your account within a few hours.
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Personal Loans Offered by HDFC Bank
HDFC Bank is the largest private sector bank in India and is one of the most preferred banks for its various financial products. HDFC Bank Personal Loan is a well- known financial product and offers its customers the opportunity to manage their financial requirements efficiently. HDFC Personal Loans are available for both salaried professionals and employees, with a maximum limit of Rs. 40 Lakhs and a flexible repayment tenor ranging between 12-60 months.
The money borrowed as a Personal Loan from HDFC Bank can be used for any personal or professional purpose because there are no restrictions from the bank in this regard. The possible uses of HDFC Personal Loans include foreign vacation, higher education, credit card bill payment, starting a new business, payment of bills, and many more. There is no need to provide a guarantor or security to avail a Personal Loan from HDFC Bank as these loans are unsecured. The approval process takes less than a minute and comes with additional benefits such as Personal Accident Cover and Critical Illness Cover.
What are the Features and Benefits of HDFC Bank Personal Loan?
Here are some of the features and benefits of HDFC Bank Personal Loan:
Immediate Approval & Disbursal
You can apply for a personal loan from HDFC Bank conveniently through online channels and get instant approvals in less than a minute. After your application has been approved the loan amount is disbursed to your bank account in less than 24 hours.
You can avail the facility of a personal accident cover of up to 8 Lakhs and critical illness cover of up to Rs. 1 Lakh on payment of a nominal premium, which is debited directly to your loan account.
Personal Loan Balance Transfer
You can opt to transfer your existing Personal Loans from other lenders to HDFC bank at a reduced interest rate and flat processing fees of Rs. 1,999.
Personal loan can be applied for online and even offline with minimal documentation. Key documents that lenders generally need the applicant to provide include a proof of identity, a proof of address and a proof of income.
High Loan Amount
Self-employed as well as salaried customers can avail Personal Loans of up to Rs. 40 Lakhs and can use the money for the fulfilment of any financial requirement.
HDFC Bank offers its existing customers attractive benefits against Home Loans along with reduced charges. New customers can also get attractive offers against Home Loans.
What are the Eligibility Criteria for HDFC Bank Personal Loan?
HDFC Bank follows a flexible eligibility criterion for processing of Personal Loan applications. Following are the essential eligibility requirements that must be fulfilled to make sure that the application is successful:
- You must be an employed professional such as a Doctor, CA, Engineer, Lawyer, etc, or a salaried individual working with a private or a public-sector undertaking including central, state or local bodies.
- Your age must be more than 21 years but less than 60 years at the time of application.
- You must have work experience of at least 2 years and must be working in the current employment for the last 1 year.
- You must be receiving a minimum amount of 15,000 as net income every month. In case you are living in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, Kolkata and Cochin, your salary should be a minimum of 20,000 per month.
What are the Documents Required for HDFC Bank Personal Loan?
Here are some of the documentation requirements set out by the bank:
- Income Tax returns for 2 years
- Form 16
- Salary account banking for 6 months
- KYC documents
- Salary certificate or salary slips
What are the Various Charges for HDFC Bank Personal Loan?
Following are the various charges levied by HDFC Bank against the Personal Loan:
- Processing Charges: Up to 2.50% of the loan amount.
- Interest Rate: Starting at 9.9% and going up to 20% p.a.
- Pre/Part-payment charges:
- Between 13-24 months- 4% of the outstanding principal amount
- Between 25-36 months- 3% of the outstanding principal amount
- After 36 months- 2% of the outstanding principal amount
- Late Payment Charges: 2% per month on the EMI (Equated Monthly Instalments), the minimum amount of Rs. 200.
- Cheque Bounce Charges: Rs. 550 per cheque bounce
- Cheque Swapping Charges: Rs. 500 per instance
- Amortisation Schedule Charges: Rs. 200
- Stamp Duty and Registration charges: As set out by the local authorities
What are the Various Factors to be Considered While Seeking a Personal Loan?
Here are some of the factors to consider before applying for a Personal Loan:
Personal Loan Interest Rate
When you take a Personal Loan, the interest outgo is one of the vital deciding factors. The interest rate you pay depends on a variety of factors: your age, income stability, whether salaried or self-employed, number of years of work experience (in the current job/business/profession) and total), your credit score, existing EMIs (if any), and your repayment capacity, loan tenure, among other things. The interest outgo determines your EMI and has a bearing on your budget and long-term financial wellbeing. So, make sure you apply for the best personal loan rates.
The maximum tenure for a Personal Loan is usually 5 years. But the shorter the tenure of a Personal Loan, the better it is. A higher tenure can reduce your EMIs, making repayments comfortable, while opting for a lower tenure (of say 2 to 3 years) increases your EMI; you pay a higher interest cost on the Personal Loan.
Processing Fee and Other Charges
Taking a Personal Loan does not end with interest rates; there are processing fees and other charges levied by lenders. The processing fee is a one-time fee charged as a certain percent of the Personal Loan amount, but subject to a minimum amount. It varies from lender to lender. A higher processing fee impacts your total cash outflow while you apply for a Personal Loan.
Apart from the above crucial aspects, assess if the lender provides you with the flexibility to repay your loan sooner, and what will this cost you. This flexibility can help you prepay the loan ahead of time, as well as provide relief in distressing times. However, it’s best to adopt financial discipline to repay the Personal Loan on time and maintain your financial health in the pink always.
When you avail a Personal Loan in times of need, you wouldn’t want it to be an unpleasant experience, do you? Hence, ensure the customer service at the lender has high standards. This service can even help keep track of your loan, allowing you to be in better control of your finances.
Terms & Conditions
Make sure you read the terms & condition carefully to make an informed choice. This will avoid issues later and ensure a pleasant, hassle-free experience.
A Personal Loan from HDFC Bank is a great boon when you need money without too much of a hassle and you don’t want to borrow from friends or family. Whether it’s for medical expenses or a wedding, foreign travel or study abroad fees, home renovation or short-term cash, you can get a Personal Loan quickly and easily. HDFC Bank Personal Loan is convenient because you can repay it over some time in pocket-friendly instalments and you can get quick disbursal with little or no paperwork.