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.
HDFC Bank is one of the leading banks of India, which also has its branches in Hong Kong, Bahrain, and Dubai. It is a private sector bank which has the honor of being India’s biggest private sector bank lender by assets. In 2016, it was ranked 69th in BrandZ list of most valuable global brands. It has 5103 branches across 2748 cities. It provides all types of loans available in India, ranging from housing to education to vehicle. The bank’s deposit account is also very profitable.
HDFC Bank Personal Loan Interest Rate
HDFC personal loan interest rates in 2019 are as low as 11.25%. And it is guaranteed that it will not exceed 20% in any case. The actual interest rate which is applied on your personal loan is decided by the bank officials based on several factors. This rate of interest is highly competitive among private as well as public sector banks.
Eligibility for HDFC Bank Personal Loans
There are some essential eligibility criteria for approval of 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.
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;
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.
Factors Affecting HDFC Bank Personal Loan Interest Rates
As mentioned earlier, your rate of interest can be anywhere from 11.25% 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.
Key Features of HDFC Personal Loans
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.
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.
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.
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.