Due to excellent scientific and technological development in the last couple of decades, humans have invented many goods for use. As a result, our requirements have increased multiple times in recent years. But, unfortunately, people’s income doesn’t increase as per their expectations every year. Still, a large number of Indians live on limited monthly paychecks. Moreover, because of the rapidly growing inflation in the country, most people find it very difficult to save money for future use. Therefore, when there is an unexpected need for cash, people search for external sources to arrange additional money.
A slim majority of Indians don’t hesitate to ask for financial assistance from their close relatives, friends, co-workers, and traditional money lenders. However, there are risks associated with borrowing money from these sources. Due to many reasons, people around you may decline to offer financial help in a crude language. Borrowing money from village lenders is also very risky. Most often, people have to pay exorbitant interest charges on money taken from such lenders. In today’s scenario, the HDFC Bank personal loan is a friendly alternative to arrange the much-needed additional cash smoothly.
A growing number of Indians apply for this loan to meet their requirements and lead a happy financial life. Why is HDFC personal loan so popular among a large number of Indians? Let’s inquire about it right now.
Personal Loan from HDFC: It’s Time To Know More About The Loan Product
HDFC personal loan is a popular financial scheme offered by HDFC Bank. It doesn’t matter what kind of cash emergency you have. You can get this loan after proving your eligibility and completing all formalities. The terms and conditions, eligibility criteria, documentation, credit score, and other loan requirements are pretty simple. The Bank has designed this loan to serve the monetary needs of a large number of Indians.
If you are eligible for the loan, you can get funds starting from Rs 50,000 to Rs. 40 lakh for 1-5 years. You can use the borrowed money to fulfill almost all financial commitments without facing any questions from Bank executives. The interest fee applied on the borrowed loan amount may range between 10.75% to 21.50% p.a. Remember, the Bank demands pre-closure charges if you want to repay the borrowed money before its repayment period.
Why Is HDFC Personal Loan So Popular Among A Large Number Of Indians?
Ample Loan Amount
The HDFC Bank allows all eligible candidates to borrow funds from Rs. 50,000 to Rs. 40 lakh rupees. This much money is sufficient for meeting certain expenses that pop up all of a sudden. Such costs may include education bills, monthly groceries, trips to a foreign country, tuition fees for higher education, mandatory health checkups, filing insurance premiums, home renovation, etc. Borrowers need to keep in mind that HDFC Bank will scrutinize their current financial condition, monthly income status, and repayment potential before finalizing the loan amount.
Also Check: Answering FAQs On The Best Personal Loan
HDFC Bank Is Available All Across India
HDFC Bank ranks in the top 10 India’s Bank, which is quite popular among many Indians. The Bank has branches and ATM centers in almost all prominent areas of our country. So whenever you need to apply for an HDFC personal loan, you can visit the nearest branch of the Bank. The availability of HDFC ATM centers in rural and urban areas allows you to withdraw the money once the loan is credited to your bank account.
If you have any questions or concerns regarding the loan, quickly contact the bank executive. They will answer your query as far as possible and offer you the best solutions. Nowadays, the overwhelming majority of Indians are applying online for HDFC personal loans. Online loan application allows you to enjoy some benefits like privacy, protection of your sensitive data, quick response from the Bank, and swift application processing.
Customer Friendly Bank Executives
HDFC is India’s most appreciated and reputed business bank, which receives positive remarks from customers for its high-quality services. The bank executives are always ready to provide more information about HDFC personal loans and remove your misconception. If you don’t know about the loan product, contact the bank executive and get more information about it. Having sufficient knowledge about the Bank and its loan products makes it easier for you to choose what is best for your urgent monetary requirements.
HDFC Personal Loan Eligibility Criteria
HDFC personal loan comes with simple eligibility criteria. You need to fulfil the following terms and conditions to become eligible for the loan:
- Only Indians can apply for this loan,
- Your age should be 21 to 60 years,
- It would help if you had stable employment with the central government, state government, recognized company, firm, business entity, etc.
- Your monthly income should be a minimum of Rs 25,000 or more. The salary must be credited into your bank account, and you should be able to prove it when asked by the Bank.
- If your monthly income is below Rs 25,000, then arrange a co-borrower.
Traditional loans available in India are notorious for time-consuming and mind-blowing documentation processes. But this is not the case when you apply for personal loan online. In general, you need to arrange the following documents to support your statement and get approved for the loan:
- Documents For personal identification,
- Documents for residence proof,
- PAN card,
- Income tax returns or form 16 (Don’t worry about these two documents if you don’t pay taxes),
- Details of co-borrower if you are applying for the jointly,
- Details of property papers, insurance, investment documents, gold, land, expensive house, means of transportation, etc.,
- Credit score papers.
Essential Things To Do Before Loan Application
Analyze Your Requirement For Loan Money
Taking a new loan is a financial liability which you can’t skip anyway. That is why it is your responsibility to analyze your requirement for a loan before applying for it. It wouldn’t be wrong to say that most Indian families rely on income from a single source for their survival. That is why they are the ones who take loans frequently to meet emergency expenses.
If there is an urgent need for money, explore all your options to raise additional funds before going to the Bank for a loan. If you get disappointment from all sides, then HDFC personal loan is an ideal option. Carefully analyze how much money you need to fulfill an urgent need. The new loan commitment shouldn’t put you in an endless debt cycle.
Choose a loan amount that you can quickly repay without seeking any extension in loan repayment tenure. If you are not able to determine this, seek help from a professional loan expert. Share all details of your income and the requirement for a loan with a specialist. He will analyze your condition impartially and provide you with valuable recommendations.
Think About HDFC Personal Loan Interest Rate
As mentioned above, the interest rate applied on HDFC personal loans ranges between 10.75% to 21.50%. It would be helpful if you used a loan EMI calculator. With its help, you can swiftly calculate the interest fees and EMIs. It will give you a general picture of the loan amount, applicable interest fees, and other details. Many people try to look for a loan with favorable interest fees and flexible terms and conditions. If you hold an active bank account with HDFC Bank, it becomes easier for the bank executives to verify your income details. As a result, you may get a loan with relaxed interest fees.
Credit Card Payments And Other Loan Commitments
These days, Indians take loans one after another to meet a wide range of requirements. Out of hundred people, 3 Indians use credit cards to meet the growing need for money. When you apply for an HDFC personal loan, Bank executives will look at your existing bills, credit card payments, and EMIs on loan you have already borrowed. They calculate your income versus all the expenses in great detail. Always keep in mind that costs should not cross the maximum limit of your monthly payment.
There must be some cash left in your bank account at the end of every month. If the bank executives feel that your expenses are higher than your monthly income, they may reject your application for the loan. So, you should have a minimum number of pending bills or EMIs on existing loans. If possible, clear all your pending bills before applying for a new loan. It can make you an ideal borrower for HDFC personal loan. Due to the lack of any pending bill, the Bank can easily believe your financial record and income statements. This situation may work in your favor, and you may get approved for the loan.
Your Credit Score
HDFC will see your credit score when you apply for HDFC Loan. A credit check is a mandatory step used by the Bank to know the borrower’s behavior in the past. It includes all the details of the loan borrower took in the past, repayment, non-payment, loan skipping, etc. The credit score works as a “financial mirror” for a particular borrower. After seeing it, the Bank can have a general idea about the financial discipline you maintain in everyday life. It also allows them to calculate your creditworthiness and repayment potential. Applicants with better credit scores are considered reliable.
On the other hand, people with bad credit scores are called untrustworthy when issuing a new loan. The Bank fears the borrower will not repay the loan if he already has a bad credit score. It is because bad credit symbolizes lots of pending bills, non-payment of the previous loan. Therefore, to get an HDFC personal loan, all borrowers are expected to maintain a healthy credit score starting from 700 to 750.
HDFC Personal Loan Application Process
You need to fill out an application form with some basic details. It may include your full name, age, employment details, salary, credit score, bank account details, address, documents, contact details, etc. All borrowers must fill the application with correct details and recheck the facts before submitting it to the lender. The Bank will not entertain applications with incorrect or misleading information. So you need to be careful while applying for the loan and supply the lender with accurate information that can be verified physically. You can apply for the loan online by visiting the HDFC website or going to the nearest branch of the Bank.
Documentation is an integral part of any loan application. Once the Bank receives your application, it will invite you to submit different documents. The Bank uses submitted papers to verify your information and evaluate your demand for the loan amount. Therefore, ensure the documents you submit are up to date and are not fake. Using forged documents for loan applications and acquisition is a severe crime in India. If this unlawful practice comes to the Bank’s notice, you will face legal problems, penalties, sanctions, and even jail terms in worse case situations.
Background Checks And Verification
HDFC will go to the bottom of your financial character like any other bank after receiving your application. This process aims to discourage unlawful practices used by borrowers to take a loan. During background checks and verification, Bank executives may ask some tough questions. However, there is no need to get restless during interviews, credit verification, and background checks. All you need to do is to supply correct information to the banker and complete formalities correctly. Once the verification process comes to an end, the Bank will announce its decision soon.
Loan Approval or Rejection
After completing initial formalities, documentation, and background checks, the Bank can announce its judgment regarding their personal loan approval or denial of your application. All those applicants who meet the eligibility criteria and complete all formulators are declared eligible for the loan. However, the Bank may reject your application for numerous reasons, such as submitting incorrect information in the application, poor credit score, insufficient income record, high frequency of job change, and too many pending bills.
Frequently Asked Questions
How Soon Can I Get The Loan If Approval Comes From The Bank?
It depends upon the HDFC Bank and its executives. Generally, once your application is approved, you get the sanctioned funds in a few days. After that, the Bank may deduct the processing fee and credit the remaining amount in the specified bank account.
I Am Employed, But My Earning Is Less Than Rs 25,000 Per Month? What Should I Do To Get Approved For HDFC Personal Loan?
If you are earning less than Rs. 25000, you need to arrange a co-borrower or guarantor. Make sure the person you choose as a co-borrower should have a stable financial record and a good credit score. It ensures the timely payment of the borrowed money without fail.
What Are My Possibilities For Loan Approval If I Am A Bad Credit Borrower?
Having a bad credit score means that you have already defaulted on your previous financial commitments. So Bank executives feel that you will not repay the new loan during the repayment tenure. So, in most cases, bad credit people face rejection from the Bank.
Should I Seek Recommendations From An Independent Loan Specialist If I Cannot Understand The Particular Terms Mentioned In The Loan Contract?
It is vital for all borrowers to fully understand the terms and conditions of the loan and their implications. Still, in India, financial literacy is a big issue. If you don’t have sufficient knowledge about the HDFC personal loan, try to get more info from the Bank’s website. You can also call the Bank and extract more information from its executives. Accurate information about the loan product allows you to make a prudent borrowing decision.
What Should I Do If I Want To Repay The Loan Before The End of Repayment Tenure?
HDFC Bank always appreciates all those borrowers who show interest in early loan repayment. To repay the loan before its repayment tenure, contact the nearest branch. The bank manager bill asks for a pre-closure fee to clear the entire loan amount as per your desire.
In today’s modern times, credit lending has become a regular practice in India. So don’t get worried if you have an urgent financial need and there are no funds to fulfil it. HDFC personal loan is an ideal way to get the much-needed cash in a short time. You have total freedom to spend the borrowed money on any expenses you deem necessary. All borrowers need to be careful before deciding to take an HDFC personal loan. Such a loan is designed to help you to come out of financial problems. So loan experts recommend cautious use of the borrowed funds.