HDFC Bank Personal Loan Interest Rate 2022

A lot of the people in India belong to the middle-class category. The critical characteristic property of this class is that middle-class people have enough money to buy necessary things, but they struggle to fulfill their aspirations. Still, many of us don’t have an air conditioner in our homes; don’t have enough money to buy a big TV and music system. Now, no worries! HDFC Bank Personal Loan will meet our dreams with ease and convenience. The full form of HDFC is Housing Development Finance Corporation.

If you wish to avail a personal loan at the lowest possible rate of interest, then you must pay attention to the HDFC personal loan interest rates. HDFC Bank offers easy personal loans with the interest rate and charges as provided below:

Particulars	Details
Rate of Interest	10.50% to 21.45% Per Annum
Processing Fees	0.99% to 2.50% of the loan amount (Min. ₹ 1,999)
Pre-payment Charges	Loan Tenure Charges Between 1 year 1 month to 2 years 4% of the outstanding Between 2 years to 3 years 3% of the outstanding Over 3 years 2% of the outstanding
EMI Overdue	24% p.a. of amount outstanding from date of default
Cheque Swapping Charges	₹ 500/- per instance
Schedule Fees	₹ 200/- per schedule
Cheque Bounce Fee	₹ 550/- for every occurrence
Lowest EMI	₹ 2,187/- per Lakh

HDFC Bank is one of the largest lenders in the country offers a wide variety of offers to its customers depending on the overall profile and the existing credit history. For example, if a person has availed loans in the past and also carries a credit card, and over the years proved themselves as a trustworthy borrower, the bank might offer a lower rate of interest and that too for a longer period of time. 

Particulars	Salaried	Self-employed
Interest Rate	10.50% to 21% p.a.	11.25% to 24% p.a.
Processing Fee	2.50% of the loan amount (Min. ₹ 1000 and max ₹ 25,000)
Foreclosure Charges	After payment 12 EMIs; 2.00% to 4.00% p.a.
Repayment Tenure	12 to 72 months	12 to 60 months
Loan Amount	₹ 25,000 to ₹ 40 Lakh	₹ 50,000 to ₹ 50 Lakh
Net Monthly Income	₹ 15,000 (In metro cities)	₹ 25,000 (for all the cities)

Loan amount of ₹ 2 Lakh taken as a personal loan for a tenure ranging from 12 months to 60 months. In this case, we have demonstrated a case where a salaried individual and a self-employed professional might refer to the interest rate calculator in order to get more clarity about how interest rate calculation works and the overall interest to be paid in terms of EMIs upon the loan amount taken from the bank. 

Employee Type	1st Year	2nd Year	3rd Year	4th Year	5th Year
Salaried @ 10.75% p.a.	₹ 11,836	₹ 23,160	₹ 34,867	₹ 46,953	₹ 53,196
Self-employed @ 11.25% p.a.	₹ 12,395	₹ 24,275	₹ 36,572	₹ 49,284	₹ 62,407

With HDFC Bank’s easy transfer feature, now anyone can transfer the balance of their existing Personal Loan from any other bank to HDFC Bank. The facility is also available for credit cards as well. The loan amount which is transferred to the HDFC bank comes with an option of low EMI and can also make you save on your existing interest payments. HDFC Bank balance transfer interest rate offered by the bank is as low as 10.50% p.a. on the existing loan transfer from any other bank or NBFC and an additional processing fee of ₹ 1999/- is applicable on all such transactions. 

However, at the time of a balance transfer, one must always be aware that the lower interest rate is only applicable on the amount being transferred from another account to this account. Any additional expense from the credit card or any top-up availed on the personal loan is liable to attract the normal rate of interest. 

HDFC Bank already offers one of the lowest interest rates in the entire lending marketplace, however it depends on the profile of the borrower. As long as the borrower has proved their creditworthiness and has a good repayment history, any lender would not mind lending to such a borrower. Here are a few tips that one shall keep in mind while applying for a loan with the HDFC bank:

• Always try and maintain a decent CIBIL score, the average a lender would want is above 700 points
• Try and opt for a longer repayment tenure whenever applying for a personal loan, the longer the tenure the lesser would be the rate of interest
• Over the period of repayment, try and make lumpsum payments in a year or so, in order to bring the principal amount as low as possible
• Interest is applicable on the balance principal amount, as soon as the principal amount becomes less, the rate of interest will automatically be lesser
• Try and negotiate with the bank you are already in touch with, most banks prefer customers who have a longing relationship with the bank over years

There are some essential Eligibility criteria for HDFC Bank personal loans. These are mentioned below.

• The age of individuals should be in between 21 years to 60 years. Those who are underage or overage are not entertained,
• The applicant should be an employee of any public sector undertakings or private limited companies or a government employee in central government, state government, or local bodies.
• The applicant must have a job for at least two previous years starting from the date of application. The applicant must be employed under the current employer for at least for 1 year.
• The salary of the applicant must be at least Rs. 15,000. This lower limit is Rs. 20,000 in some cities like Bangalore, Mumbai, Delhi, Chennai, Kolkata, Hyderabad, Cochin, and Ahmedabad. 
• The applicant must be able to produce a guarantor before the bank officials. The guarantor is the person who is ready to pay the loan in case the actual applicant is not able to pay it.

Required Documents 

Documents are only required for those customers who don’t already have an account with HDFC Bank. The documentation process is very simple and less time-consuming. The list of documents required is given below;

Identity Proof (Adhar, Driving License, Passport, Voter ID Card) Address Proof (Adhar, Driving License, Passport, Voter ID Card) Bank Statement of Last 3 months (Passbook of previous 3 months) Latest Salary Slip or Current Dated Salary Certificate with Form 16

Fees and Charges

Apart from the HDFC personal loan rate of interest, some other fees charged for incorporation with your loan application. 

• Part Payment Charges

If you have some amount of money which is less than the principal amount, then you can deposit it against your loan and it will decrease your EMI and total interest paid. But you will have to pay extra part payment charges of around 2-4% and also part payment is allowed only after 12 months.

• Pre-Payment Charges

It is to be paid if you want to pay your entire principal amount at once. It ranges between 2-4% and can only be paid after 12 months.

• Processing Fee

This fee is charged to carry on the processing of your loan application. It varies between 0.99% and 2.5 %. But there is also a minimum amount which has to be paid and also there is an upper limit. 

• Overdue EMI Interest

If you are unable to pay the EMI for any month, then you will have to pay an interest of 2% per month on EMI.

• Cheque Bounce Charges

If the EMI is paid using cheque and the cheque bounces, then you will have to pay Rs. 550 per bounced cheque.

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

Apart from the low-interest rates, there are several other benefits like fast loan approval, excellent cooperation from the bank official, and many more. These features are also very essential while checking for a loan. Some of these features are listed below.

Tenure

Generally, personal loans are disbursed for a low period. HDFC Bank provides you the option to choose from 12 months to 60 months as your tenure of personal loan.

Age

Anyone between 21 to 60 years of age can apply for HDFC personal loans. 

Convenience in Application

At HDFC Bank, it is guaranteed that your loan application will cause you no inconvenience. All the bank officials will thoroughly guide you through each and every step of the loan application process and help you in every possible way.

Less Time

It takes very less time for the disbursement of the loan. If all your documents are ready, then it will take no more than 2-3 day to get the loan amount in your bank account.

Offers for Existing Customers

There are several benefits for existing customers. Like HDFC bank personal interest rate is lower in case of existing users and also the loan approval is extremely fast as most of the details are already fed in the system.

Other Schemes for Special Category

They provide several schemes to particular users also where the rate of interest is low. Some of these schemes are listed below.

• Personal Loans for Salaried Professionals
• Golden Edge Personal Loan
• Personal Loan for Doctor
• Personal Loan to Pensioners
• Personal Loan to Defense Sector Employees
• Personal Loan Diva for Women Customers

Equal Monthly Installment (EMI) depends upon the loan amount, interest rate and tenure of your loan. The formula which is used for calculation of EMI is 

Where P = Principal Amount

r = Rate of Interest

n = Tenure of Loan

HDFC bank also provides an EMI calculator for Personal Loans software on their website.

Repayment Options

You can repay your loan in the form of EMI and if in between your loan tenure you feel like you have sufficient amount to pay the entire principal amount, then you can pay it at once also. But you will have to pay pre-payment charges along with the full principal amount. EMIs start from Rs. 2187 per lakh.