A Personal Loan can be a smart choice when you find yourself in the middle of a financial emergency or in sudden need of cash. Here’s everything you need to know about the HDFC Bank Personal Loan.
What is the eligibility criteria?
You are eligible to apply for the HDFC Bank Personal Loan if you meet the following requirements:
- If you are a salaried individual, you must be between the ages of 21 to 60 years.
- If you are self-employed, the minimum age is 21 years and the maximum is 65 years.
- Your net monthly income should be at least Rs. 20, 000 (Rs. 25,000 in Madhya Pradesh)
Additional Reading: Do You Need That Personal Loan?
What are documents required to apply for an HDFC Bank Personal Loan?
The documents required to apply for a Personal Loan differ according to the profile of the applicant. This also differs for salaried individuals and self-employed individuals.
Here’s the list of documents to keep handy while applying of the HDFC Bank Personal Loan:
- Signed application form with photograph
- Identity and address proof
- Income proof
- Processing fee cheque
Documents for salaried applicants:
- Identity proof: Aadhaar card, Passport, Voter ID card or Driving license
- Address proof: Ration card/Passport/Rental agreement/Electricity or telephone bill
- 6 months bank passbook or last 3 months bank statements
- Recent salary slip or current salary certificate.
- Latest Form 16
Documents for self-employed applicants:
- PAN Card: For Company /Firm/ individual
- Identity proof: Passport/ Aadhaar card/Voter ID card/Driving license/Pan card
- Address proof: Aadhaar card/Passport/Driving license/ Voter ID card
- Latest 6 months bank statements
- Latest ITR along with computation of income, recent balance sheet along with Profit & Loss statements
- Proof of continuation
Additional Reading: Personal Loan Document Checklist
How much can I borrow?
HDFC Bank offers a maximum loan amount of Rs. 25 lakhs on their Personal Loans. However, the bank uses several parameters to evaluate your maximum eligibility for a loan. This includes your net monthly income, loans that you already hold, monthly outflow, Credit Score etc.
Usually, if you are a salaried individual, the bank can sanction a loan amount of up to 50-60% of your net monthly income. Whereas, for the self-employed, the loan amount is calculated taking into account the profit earned as per the most recent acknowledged profit/loss statement and any additional liabilities such as current loans for business, etc.
Check This: Personal Loan EMI Calculator
What are the various charges that I should be aware of?
Here’s the list of charges that you should be aware of before applying for the HDFC Bank Personal Loan:
Interest Rate: The interest rate for the HDFC Bank Personal Loan ranges from 10.99%-19.8%.
Processing charges: To process your loan, the bank levies a one-time processing fee of 2% of the loan amount. This fee is debited from the loan amount before it’s credited to your account.
Pre-closure charges: If you plan to prepay your Personal Loan before its tenure, the bank will charge a pre-closure fee equivalent to 4% of the outstanding principal amount.
Additional Reading: Personal Loan Handbook: All Questions Answered
Key features of the HDFC Bank Personal Loan
- There is no security, collateral or guarantor required to avail a Personal Loan from HDFC Bank.
- The bank offers a balance transfer facility.
- You can choose to repay your Personal Loan within a tenure of 1-5 years.
- Paperless option is also available.
Before you apply for a Personal Loan, don’t forget to evaluate and compare as many offers as you can before zeroing in on one. It’s best to compare interest rates, loan tenure and other charges across various Personal Loan lenders and pick the one that suits your needs. We can help you there!