A personal loan with increasing financial understanding has become one of the fastest mushrooming financial products in the country. Aside from financial experts, there are other reasons for the high demand for a personal loan. A large number of personal loan lenders can be found in the financial sector, which makes HDFC one of the best banks in India. Apart from the personal loan and personal loan EMI calculator HDFC also provides additional benefits to pre-approved current customers of bank, low transaction fees are associated with HDFC personal loan, and there are several advantages that a borrower can obtain through the loan of HDFC Bank. Below, it lists several of them:
- Fast loan disbursement: As stated above, existing customers can get pre-approved loan by HDFC Bank will benefit from additional benefits that can include disbursement of a loan in the shortest possible period. Within a couple of hours, some will get the balance of the loan. To make it easier for you, after approval of the loan, HDFC Bank disburses the loan balance directly into your bank account.
- Quick loan processing: You can apply for an HDFC personal loan online, at an ATM, or by visiting the nearest bank branch. By this application process, the loan processing is made swift and convenient.
- Minimal documentation: Fewer papers are necessary to process HDFC personal loans, so the time required for the HDFC personal loan paperwork and the processing time is much shorter than the other loans. It usually requires basic paperwork from the applicant.
- Lucrative interest rates: The interest rate for HDFC personal loans starts from 15.50 percent, but can differ based on various factors such as borrower profile, credit score, credit history, revenues, EMIs, loan amount used, repayment tenure, etc.
- Availability of loans: Anyone can use HDFC personal loans and can use them for any personal purpose, such as marriage, home renovation, education, utility bill payment, and others.
- Flexible repayment terms: With a flexible tenure ranging from 12 months to 60 months, a personal loan can be repaid fast. The tenure can be picked according to your readiness and convenience because of the flexible tenure.
In addition to providing low-interest rates, HDFC also offers free use of a personal loan EMI calculator, which makes it easier for you to schedule your loan wisely. Depending on the amount of the loan used, income, tenure of the loan, and others, the HDFC personal loan interest rate can vary, as mentioned above. The following are some main factors determining India’s HDFC personal loan interest rate:
- Loan Amount- The amount lent from HDFC Bank by you.
- Income- The wage reveals the financial potential for repayment of the loan. The lower the interest rate on a personal loan that you get is usually the higher the pay.
- The existing relationship- HDFC offers exclusive rates, discounts, and charges to existing customers of the bank. India’s low HDFC personal loan interest rates would benefit those who have kept their accounts and have a good bank credit background.
- Loan maturity term- Flexible repayment tenure varies from 12 months to 60 months, as discussed above with HDFC personal loan. It also plays a major role in determining the HDFC personal loan interest rate.
Tips to get low EMI on a Personal Loan
- Choose a loan with a longer Tenure of Repayment
The repayment term for the loan is inversely proportional to the amount of EMI for a given amount of the loan. The cumulative due sum is spread over a longer period when you opt for a longer loan term. This, in essence, decreases the amount payable in monthly installments. Choosing for a longer period, though, also implies that you will be charged an interest rate for an extended time on the outstanding debt. Although increasing the tenure of the loan will lower your EMI, throughout the loan tenure, it can convert to a greater amount of interest. Therefore, before extending your loan term, you should be very cautious and always consider all the pros and cons before increasing the loan length.
- Go for an EMI Plan Step-Down
There are various banks and non-banking financing companies that offer the option of a Step-Down EMI Plan to their clients. According to this system, at the start of the tenure, when a borrower has a loan, he or she must pay a greater sum than EMI. The EMI sum steadily decreases as time passes, as the principal amount decreases after each monthly payment. During the latter part of the loan term, this strategy will help decrease the interest burden. This form of Flexi-EMI scheme is also ideally suited to individuals who are closer to their retirement as it is focused on the customer’s cash flow needs.
- Consider borrowing from your current bank
If you’re already a customer with a certain bank, choosing the same bank for buying a loan would be a wise choice. If you have a strong position with your bank, this may work in your favor, in which case they will be more likely to provide you with a lower interest rate on your preferred loan.
- Higher rate agreement with the bank
Given the above, if the person has a good position with their bank, they might be in a position to negotiate a lower rate of interest on the loan with the bank. To improve brand loyalty and also draw more clients, banks may be able to do so for their current clients.
HDFC Bank Personal Loan Eligibility Criteria
The eligibility requirements for HDFC personal loans vary by rank, income, and many others, but the following are the generic criteria:
- An applicant’s minimum age should be 23 years and a maximum of 58 years.
- The minimum monthly salary should be Rs.17, 500 if an applicant remains in Delhi & Mumbai. Whereas, when an applicant resides in the cities of Chennai, Hyderabad, Bangalore, Pune & Kolkata, the minimum monthly income requirements increase to Rs. 26, 000.
- An applicant should have at least 2 years of working experience in the present business.
Required Documentation for HDFC Personal Loan
The requisite documents vary based on certain factors, such as the amount of the loan, repayment tenure, eligibility, and others. Below is the list of the standardized documents needed for HDFC’s loan:
- ID Proof
- Residential proof: All utility bills, including telephone bills, electricity bills, and water bills
- Bank statements for past three months
- The last 6 months’ passbook
- New payrolls
- Form 16
HDFC Bank Process of Personal Loan Application
You can apply for HDFC personal loans in just 5 simple steps:
- Step 1: Decide on the conditions – Decide according to the needs on the amount of the loan required.
- Step 2: Confirm loan eligibility – HDFC personal loan eligibility depends on some keys, such as income, credit score, etc. A borrower can discover his loan eligibility by visiting the website.
- Step 3: Monthly EMI estimate- Using an online personal loan EMI calculator, the EMI can be calculated.
- Step 4: Approach the bank: HDFC personal loan can be applied online or offline mode.
- Step 5: Submit documentation: Essential documents such as address proof, identity card, proof of income, and photographs of passport size must be submitted, but if you are pre-approved for an HDFC personal loan, you do not even need to submit these documents.
Always remember to review the fees involved in the processing of a loan, regardless of the routes you choose to apply for a personal loan, as fees can also vary depending on how you apply for a personal loan from HDFC.