Everything You Need To Know About A Personal Loan

 

Everything You Need To Know About A Personal Loan

Personal Loan does not require any collateral or security and can be obtained with minimal documentation. Just like most loans, however, it must be repaid in monthly instalments.

You can use it to fund any expense including education, a wedding, a trip, home renovation, medical expenses, and even to buy 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 hours. 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.

 

The benefits of a Personal Loan:

 

The process is hassle-free. You can apply for a HDFC Bank Personal Loan online, through an ATM, Loan Assist App or personally at the bank. This process requires minimum documentation.

Existing HDFC Bank customers can get a pre-approved loan in just 10 seconds or 4 hours at the most, for non HDFC Bank customers.

Personal Loan can be used for any purpose. For example, with EMI as low as Rs. 2149 / lac. A Car Loan or a Home Loan must be used for that specific purpose but the Personal Loan can be used for any purpose like vocational courses, home renovation, medical emergency, or to travel , just about anything. The choice is up to you.

 

No security or collateral is required for a Personal Loan. You don’t need to mortgage your house, just so you can take that much-needed vacation trip!

There is minimum documentation required in order to obtain a Personal Loan. This also cuts down on the processing time for such a loan. All you need to secure a Personal Loan is: ID proof, address proof and income proof.

The payment terms are flexible, and you can choose your tenure as per your suitability. HDFC Bank offers tenure ranging from 12 to 60 months,  with EMI as low as Rs. 2149 / lac.

You can also claim tax benefits on the interest payments if you use the loan amount for buying, constructing or renovating a home, or for higher education purposes.

 

What are the uses of a PersonalLoan?

 

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 the 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 to boot.

You don’t need to blow all 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 on day-to-day requirements during a cash crunch.

Whatever you can think of. Seriously.

 

How do you choose a perfect Personal Loan?

 

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

 

Time of disbursement is the time in which the loan is approved. A Personal Loan can be very useful in raising funds quickly, especially in case of 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 hours at best.

Amount of loan, the 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 up to Rs. 40 lac, for a tenure ranging from 12-60 months with easy EMI repayments starting from Rs. 2149 per lac.

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 hours 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.

 

How to Check Eligibility for Personal Loan

 

You need to be sure that you are eligible for a Personal Loan, before you consider applying for one. The eligibility criteria dictate that you can apply for a Personal Loan if:

 

You are a salaried doctor, or 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.

 

What is EMI? And how do I lower it?

 

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

 

It is important to calculate your EMI and find a way to keep it as low as possible. There are three factors that determine your EMI:

 

The loan amount

The interest rate

The tenure

The easiest way to calculate EMI is to use online calculators like the HDFC Bank Personal Loan EMI calculator. You can change the loan amount and tenure as you please until you finally find the right EMI. If you have a fixed loan amount in mind, then 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 upto Rs. 40 lac, for a tenure ranging between 12 and 60 months, with EMI as low as Rs. 2149 per lac.

 

How do I apply for a Personal Loan?

 

Applying for a Personal Loan is quick and easy. And it takes just 5 steps:

 

Figure out why you need the loan, and how much amount. You can get a Personal Loan for wedding or a vacation trip. You could take Rs. 1 lac or Rs. 10 lacs.

 

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 upto Rs. 40 lacs.

 

Calculate your EMI using the HDFC Bank Personal Loan EMI calculator. It is simple to operate. HDFC Bank offers EMI on Personal Loan for as low as Rs. 2149 per lac.

 

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.

 

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

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

 

What other options do I have apart from Personal Loans?

 

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 for immediate loan disbursal into the your HDFC Bank account, while the Insta Jumbo Loan allows the same for an amount that may be beyond your credit 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 as well as property. Gold Loans are usually the quickest way to obtain funds for personal and business requirements. Loans against property allow you to obtain upto 60% of the commercial or residential property that 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 at the sole discretion of HDFC Bank limited. Credit Card approvals is subject to documentation and verification as per Banks requirement.