Everything You Need To Know About A Personal Loan

Personal Loan requires no collateral or security and can be obtained with minimal documentation. Like most loans, however, they must be repaid in monthly instalments.

You can fund any expense, including education, a wedding, a trip, home renovation, medical expenses, and even a gadget. You can even use the money to help out with the day-to-day expenses in case of a cash flow crunch.

HDFC Bank offers a Personal Loan to pre-approved customers in just 10 seconds. For others, it usually takes about 4 days. As an already existing customer, you can apply via NetBanking on the HDFC Bank website, through an ATM or Loan Assist App. Otherwise, you can drop by the nearest branch to get the process started.

You can get a re-payment tenure that suits your needs. And then you have to make the payments in equated monthly instalments or EMI. This instalment amount is calculated using the loan amount, the payment tenure, and the interest rate.

Hassle-Free Application Process

Applying for a personal loan with HDFC Bank is straightforward and convenient. You can apply online, via an ATM, through the Loan Assist App, or in person at the bank. The process requires minimal documentation, making it easy to get started.

Quick Approval for Existing Customers

Existing HDFC Bank customers can receive a pre-approved loan in as little as 10 seconds. Non-HDFC Bank customers can expect approval within 4 days, streamlining access to funds.

Versatile Usage

A personal loan can be used for virtually any purpose, whether it is for vocational courses, home renovation, medical emergencies, or travel. Unlike Car or Home Loans, which are restricted to specific uses, personal loans offer flexibility in how you use the funds.

No Security or Collateral Required

You don’t need to provide any security or collateral to obtain a personal loan. There's no need to mortgage your house or provide other assets, allowing you to access funds without extra burdens.

Minimal Documentation and Flexible Terms

Only ID, address, and income proof are required to secure a personal loan. HDFC Bank also offers flexible repayment terms, with tenures ranging from 12 to 60 months and EMIs starting as low as ₹1,878 per lakh.

Tax Benefits

You can claim tax benefits on the interest payments of your personal loan if the funds are used for buying, constructing, or renovating a home or for higher education expenses.

There are several ways in which a Personal Loan can be used:

• You can use it to finance higher studies. And claim tax benefits on the interest payments.

• Weddings are always expensive affairs. You can pay for it with a Personal Loan.

• You can use it to buy that new laptop or phone with state-of-the-art technology.

• Considering buying a home? Or planning to renovate your current dwelling? You can make it happen with a Personal Loan, with tax benefits.

• You don’t need to lose your savings on your dream vacation trip. You can finance your travels with a Personal Loan for travel.

• Cash flow issues can also be dealt with through a small Personal Loan, so you don’t have to sacrifice day-to-day requirements during a cash crunch.

Several factors go into choosing which Personal Loan works for you. Time, urgency and capacity to repay are important factors you need to consider.

• The time of disbursement is the time in which the loan is approved. A Personal Loan can be very useful in quickly raising funds, especially in a medical emergency. HDFC Bank provides a Personal Loan within 10 seconds to pre-approved customers. For non-HDFC Bank customers, it may take 4 days at best.

• The loan amount, tenure, and payment are also important as they help determine your EMI. Obtaining the right amount, easy EMIs, and flexibility in tenure help decide what loan works for a person. HDFC Bank offers you a Personal Loan that can amount to up to ₹40 lakh for a tenure ranging from 12-60 months with easy EMI repayments starting from ₹1878 per lakh.

• An efficient loan process makes everything easier when looking for a Personal Loan. HDFC Bank grants a Personal Loan within 10 seconds and with minimum documentation whatsoever if you are a pre-approved customer. If not, you can get a loan in 4 days at the most, with minimal documentation: ID proof, address proof and income proof.

• The interest rate and the processing fee determine the total cost of the loan. Do pay attention to these factors before you pick a loan. HDFC Bank provides highly competitive interest rates and low processing fees with easy-to-pay EMIs.

Ensure you are eligible for a Personal Loan before considering applying for one. The eligibility criteria dictate that you can apply for a Personal Loan if:

• You are a salaried doctor, a CA, or an employee of any private limited company or a Public-Sector undertaking (including Central, State and Local bodies).

• You are within the age range of 21 to 60 years.

• You have held a job for at least 2 years, with a minimum of 1 year with the current employer.

• Those who earn a minimum of 25,000 net income per month

EMI or equated monthly instalments are an important part of a loan. It is the interval instalment amount that you pay to clear your loan.

Calculating your EMI and finding a way to keep it as low as possible is important. Three factors determine your EMI:

• The loan amount

• The interest rate 

• The tenure

The easiest way to calculate EMI is through online calculators like the HDFC Bank Personal Loan EMI calculator. You can change the loan amount and tenure until you finally find the right EMI.

If you have a fixed loan amount, adjust the tenure until you find the right EMI. Once you find what you’re looking for, click on ‘Apply now’. In the early period of the loan tenure, the EMI will have a higher interest component and lower principal amount, but this will reverse as you near the end stages.

HDFC Bank offers loan amounts up to ₹40 lakh, for a tenure ranging between 12 and 60 months, with EMI as low as ₹1878 per lakh. 

Applying for a Personal Loan is quick and easy. It takes just five steps:

• Step 1: Determine why you need the loan and how much. You can get a Personal Loan for a wedding or a vacation trip. 

• Step 2: Calculate whether you’re eligible for a Personal Loan or not. You can use HDFC Bank Personal Loan eligibility calculator to determine how much you can borrow. HDFC Bank allows you to borrow up to ₹40 lakh.

• Step 3: Calculate your EMI using the HDFC Bank Personal Loan EMI calculator. It is simple to operate. HDFC Bank offers EMI on Personal Loans for as low as ₹1878 per lakh.

• Step 4: Approach the bank and apply for the loan by NetBanking, via the bank’s website, or through an ATM. You can also visit the nearest branch to apply in person.

• Step 5: Simply provide the bank with your documents. These are minimal. All you need are ID proof, address proof, and income proof (IT returns, salary slips, or bank statements)
   

After all this, wait for the loan funds to be remitted to your account. HDFC Bank usually disburses a loan within 10 seconds if you are a pre-approved customer, while non-HDFC Bank customers can get the loan in 4 days.

If you are not sure about a Personal Loan, then HDFC Bank offers several other options that you can use to generate funds for your needs. The bank offers loans against the following:

Credit Card

Depending upon your account and requirements, you can get the loan credited to your HDFC Bank account. For instance, Insta Loan allows immediate loan disbursal into your HDFC Bank account, while Insta Jumbo Loan allows the same for an amount beyond your credit card limit.

Securities

You can pledge your securities with the bank and obtain a loan. The processing is quick and comes without any prepayment or foreclosure charges. You can choose which security you want to pledge: Mutual Funds or Shares.

Digital Loans against Mutual Funds

HDFC Bank is one of the first in the country to offer Digital Loans Against Mutual Funds. The entire process just takes 3 minutes!

Loans Against Shares

This process can also be done online and quickly. The funds will appear in a special created for this purpose and will be available to use almost immediately.

Other Loans

HDFC Bank offers customers the option to obtain loans against gold and property. Gold Loans are usually the quickest way to get funds for personal and business requirements. Loans against property allow you to obtain up to 60% of the commercial or residential property you put up for collateral.

So what are you waiting for? Apply for a Personal Loan now!

*Terms and conditions apply. Loans at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.

Credit Card approvals are at the sole discretion of HDFC Bank Limited. Credit Card approvals are subject to documentation and verification per the bank's requirement.