A personal loan is the type of scheme that is issued when the borrower requests an immediate arrangement of funds. Personal loans are the most considered loans. They provide immense benefits. The quick cash for any form of help is the most favourable benefit. Consumers or borrowers can issue a personal loan through various channels. These channels consist of banks, credit unions or online lenders. The factors like tenure rate of interest or even the needed credibility of the consumer vary from lender to lender. If you have been looking towards investing in personal loans and searching for the best providers, we have a name for you. And the name is HDFC Bank.
HDFC Bank is well known for its well-mapped loans. It is part of one of the top 5 banks that are well known for their loan schemes. HDFC is notoriously famous for its low rate of interest as well. The loyal consumers of the bank play an important role here since they have left multiple reviews praising the bank for its flexibility and low rate of interest, making it one of the most trusted banks for personal loans. If you aren’t one of those clients and have clicked on this article wondering about the HDFC Personal Loan Interest Rate, then we are here to debrief you about it.
HDFC Bank – Account Benefits
Aside from HDFC Personal Loan Interest Rate, which is comparatively low amongst the competitors, there are several others that the consumer should not overlook.
- If the consumer is already in association with the bank for several previous transactions, then the approval of the loan is done merely in a few hours. However, these changes for those who aren’t such consumers get their loans sanctioned in 4 working days.
- Since the world is actively getting digitised the application for the loan can also be filled up on HDFC’s online website.
- Interest rate and processing fee both affect the total cost of your loan. Luckily HDFC bank provides a low processing fee to help lessen your burden.
- The lack of collateral in all unsecured personal loans is an ideal option even though opting for the secured kind could avail you of fewer interest rates.
- The tenure that HDFC provides for your loan repayment could range from 12 months to 60 months.
- The loan amount that HDFC starts from is 10,000 and reaches the high of 40 lakhs. Its EMI starts from 2,149.
Pro tip: Check your EMI based on your requested amount, free of cost, on the EMI that is made available on the bank’s online website.
- Interest rates are affected by a few factors. The factors are your annual income, type of employment and a good credit score. HDFC bank personal loan interest rate is very low. They start at 10.25% to 21.00%.
Pro tip: Keeping the credit score above 700 helps a great ton to lower the rates of interest.
Factors affecting the HDFC Bank rate of interest
While applying for a personal loan, HDFC checks certain aspects of the consumer to provide a better rate of interest or even lower it at times. Given below are the factors that HDFC makes in mind while making the decisions.
The bank checks your annual income to determine whether or not you are financially stable to repay the loan. The clients with higher annual income have lower rates of interest. This is because they do not pose a threat to the lender. Whereas, clients with lower income have to brace themselves for higher rates of interest.
The rate of interest is decided based on the nature of employment, salaried or self-employed. This is looked upon because it tells the consumer how disciplined and trustworthy they could be.
Just as how the employment of the client determines their discipline and credibility, so does the credit score. A credit score is determined by the past transactions that you have made with the bank. Keep a credit score of higher than 700. This can help you to negotiate a lower rate of interest.
Age also plays a role in this case. In personal loans, no collateral is provided to the bank; this makes the consumers who are elderly or belong to the senior citizen category a threat. This is because they do not provide any sense of backup security. Hence, the rate of interest is higher in such situations.
Relation with bank
Previously, if the consumer has been associated with the bank then the approval of the loan is done speedily. The same is applied to the rate of interest. Since the bank is already familiar with the consumer’s mannerisms, it could offer a low-interest rate.
HDFC ranks number one for its services. They have been known as the most flexible and easy to work with in terms of personal loans. After reading these points, hopefully, you will understand a little better why you should trust HDFC Bank and its loan scheme.