As mentioned earlier, your rate of interest can be anywhere from 10.50% to 20%, which depends on several other factors. The interest rate varies among user to user because the risk of fault associated with the loan application of each user is different. If the risk is low, then the interest rate is high and vice versa. Some of the factors which are used to determine HDFC personal loan interest rate are mentioned below.
• Salary: Your salary is probably the most essential factor in determining the HDFC personal loan rate of interest. If you have a high salary, then it means there is a lesser risk of fault in your loan application, and hence, the rate is low.
• Employer Category: If you are employed in a big firm, then your HDFC Bank personal loan interest rate will be low and vice versa. They have an internal database which is used to decide the credibility of your employer. If you are self-employed then generally interest rates are higher.
• Loan Amount: You can avail any amount of personal loan ranging from Rs. 50,000 to Rs. 40,00,000. If your loan amount is higher, then the bank can earn high profit at low interest, but if your amount is less, then they will have to charge a higher rate of interest to ensure good profit.
• Relation with HDFC and Other Banks: They check if you have any faulty loan history in their bank or any other bank and then decide the rate of interest. Also, if you are an existing customer, then they also provide some offers and benefits.
• Repayment Capability: This defines the chances that you will successfully pay back the entire loan amount. This depends on several things like your credit score, CIBIL, and many more things. Your area of employment (government or private) is also used to determine HDFC personal loan interest rate