Unsecured Loans: Understanding Its Types And Benefits

Are you planning for a destination wedding? Or taking that long overdue vacation? Or revamping your house into your dream home? Do not let finances stop you from realising your dreams. HDFC Bank offers you Unsecured Loans to live your dream without burdening you with heavy financial debts. Read on to learn more about this loan, its types, and its benefits. 

Revolving Loan

A Revolving Loan is a type of credit that allows you to spend, repay, and spend again within a set credit limit. The bank sets a maximum credit limit in advance, which you can use fully or partially based on your needs. Once you repay your dues, the credit limit is restored, enabling multiple uses of the credit limit. The typical examples of this loan product are credit cards and lines of credit.

Term Loan

A Term Loan is ideal for accessing funds when you need a lump sum. It typically comes with a fixed interest rate and is repaid in equal installments over a set period. This loan is helpful for purchasing fixed assets, paying for medical expenses, funding child education, or other expenses that require substantial funds. The most popular example of this loan is a Personal Loan.

Consolidation Loan

During financial hardships, debts can accumulate, making it challenging to keep up with payments due to rising interest rates. A Consolidation Loan helps by allowing you to clear accumulated debt and ease your repayment cycle significantly.

• Quick application process - The application process for unsecured Personal Loans does not require excessive paperwork. You must have proper financial documents and a good credit score while applying for this loan. 
  
  
• Collateral free – As the name implies, unsecured Loans do not require any collateral while applying for it. The loan is approved based on your credit behaviour, like the existing loan repayment pattern and credit card utilisation rate. The lender also considers your age and income before granting approval.
  
  
• Option to disburse smaller loan amounts – HDFC Bank offers Unsecured Loans for smaller amounts. Furthermore, the bank also makes repayment easier for you by providing a flexible Equated Monthly Instalments (EMIs) option and the option to choose repayment tenure based on your budget.
  
  Hope this article has helped you better understand Unsecured Loan and the entailed benefits. Maintaining a good credit score is the key to applying for this loan. You can visit the nearest HDFC Bank branch or contact your relationship manager to get more details about this loan.

Start your financial journey with HDFC Bank today.

Apply for an HDFC Bank Personal Loan by clicking here.

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