Common Worries Before Applying for a Personal Loan Answered

If you've received a pre-approved Personal Loan offer but haven't acted on it yet, you're not alone. You may have questions like: will it affect your credit score? What if your plans change? Can you repay the loan early? These are all valid concerns.

The good news is that most of these questions have straightforward answers. In this blog, we address some of the most common worries you might have before applying and explain what you can realistically expect throughout the process.

Here’s what you need to know about Personal Loan:

1. Will applying affect my credit score?
   Not if you apply directly through HDFC Bank using your pre-approved offer. A pre-approved offer means the bank has already assessed your profile, there's no new hard enquiry required at the time of application. Your credit score remains unaffected.

2. Can I change the loan amount after applying?
   Before you submit your application, you can adjust the amount anywhere up to your approved limit. Once the application is submitted and under processing, changes may not be possible. If you're unsure about the amount, it's better to set it conservatively and discuss an increase separately if needed.

3. What happens if I miss an EMI?
   Missing an EMI has consequences: a late payment fee is charged, and the missed payment is reported to credit bureaus, which can affect your credit score. If you anticipate a cash crunch in a particular month, it's better to contact HDFC Bank proactively.
   You can set up an e-mandate from the same account your salary credits to, so deductions are automatic.
   
   
4. Can I prepay the loan early?
   HDFC Bank allow for part-prepayment and full prepayment of Personal Loan, typically after a lock-in period. However, prepayment charges apply, the exact percentage is specified in your loan agreement.
   
   
5. Will I be contacted by a loan agent after applying?
   When you apply directly through HDFC Bank's app or NetBanking, you're not passing through a third-party channel. Any communication will come directly from HDFC Bank, via your registered mobile number and email, and will relate specifically to your application status or loan servicing.
   
   
6. What if something goes wrong during the application?
   The online application process has been built to handle most common issues: network drops, session timeouts and OTP failures, without losing your progress. If you encounter a persistent issue, you can contact HDFC Bank's customer care or visit a branch with your application reference number. 

It's natural to have questions before taking a Personal Loan, even when you have a pre-approved offer. The good news is that most of these questions have straightforward answers. By understanding how the process works and reviewing the loan terms carefully, you can make a more informed decision about whether a Personal Loan is right for your needs.

Still have questions? Start your application and see your final offer first.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank Limited.  Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.