HDFC Personal Loan Interest Rates
HDFC Personal Loan offers highly competitive interest rates and has special offers and interest rates for HDFC Bank account holders. It also offers special loan offers for women employees. First-time borrowers will be given low loan offerings. The personal loan is available on the basis of a person’s credit history like his repayment history on other loans and credit cards. The process to apply for the loan is simple and requires minimum documentation and a person can avail a personal loan for various needs.
HDFC Personal Loan Interest Rates
| Particulars | Salaried |
|---|---|
| Interest rate | 15.75% to 20% p.a. |
| Loan Amount | Min: Rs 50,000; Max: Rs 15 lakh. |
| Loan Tenure | Min.: 1 year; Max.: 5 years |
| Lowest EMI | Rs 2405 (Per lakh, for the maximum tenure of 5 years) |
| Processing Fee | Up to 2.50% of the loan amount (subject to a minimum of Rs. 1,000 & maximum of Rs. 25000) |
| Age | Between 21 to 60 years of age |
| Prepayment Charges | If loan is prepaid within 13-24 Months, prepayment charges will be 4% of principal outstanding loan amount; if prepaid within 25-36 months, 3% of principal outstanding loan amount and if paid within 36 months, 2% of the principal outstanding loan amount. No prepayment can be made before 12 EMIs are repaid. |
| Foreclosure Charges | NA |
How to calculate Interest/EMI on HDFC Personal Loan?
EMI (Equated Monthly Instalment) is the payment made by a borrower to the lender each calendar month as the part payment of the loan availed by him/her. Both principal and interest can be paid off through EMIs in a specified period of time till the loan is realized in full by the lender.
Mathematically, the EMI amount can be calculated by using the formula mentioned below:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the principal (Loan amount), R stands for rate of interest per month and N stands for a number of monthly installments. If the annual rate of interest is 10%, the monthly rate of interest would be 10/(12 x 100).
HDFC Bank Personal Loan – Rates of Interest and Additional Charges
| Fee | Amount to be Paid (For Salaried Individuals) | Amount to be Paid (For Businessmen/ Self-employed Individuals) |
| Rate of interest | 15.75% to 20% (Salaried) | 15.50% to 18.30% |
| Processing charges on loan | Up to 2.5% of total loan (Minimum- Rs.1,000 and Maximum – Rs. 25000) | Up to 2.5% of total loan (Minimum- Rs.1,000 and Maximum – Rs. 25000) |
| Prepayment | Pre-payment not permitted until 12 EMIs are repaid. | Pre-payment not permitted until 6 EMIs are repaid |
| Pre-payment charges | For Salaried individuals: If repaid between 1.1 Years to 2 Years – 4% of outstanding principal From 2.1 years to 3 Years – 3% of outstanding principal After 3 years – 2% of outstanding principal | 07 Months to 2 years – 4% of Principal Outstanding From 2.1 years to 3 years – 3% of Principal Outstanding >3 years – 2% of Principal Outstanding |
| Charges for delay in EMI payment | At 24% p.a on the outstanding loan amount from date of default | At 24 % p.a on amount outstanding from date of default |
| Stamp duty and other charges | As per laws applicable by the state | As per laws applicable by the state |
| Cheque swapping charges | Rs.500 | Rs.500 |
| Amortization Schedule charges | Rs.200 | Rs.200 |
| Loan cancellation charges | No charges (However, interest for the period between the date of loan disbursement and cancellation of loan along with the processing fees would be retained). | No charges (However, interest for the period between the date of loan disbursement and cancellation of loan along with the processing fees would be retained). |
| Cheque bounce charges | Rs.550 for each cheque bounce | Rs.550 for each cheque bounce |
| Incidental/legal charges | At actual | At actual |
| Copy Charges for CIBIL Report | Rs.50 for each copy | Rs.50 for each copy |
Factors affecting HDFC Personal Loan Interest Rates
HDFC personal loan interest rate varies from person to person due to various factors. Some major factors affecting the interest rates are as follows:
- Loan tenure: Shorter term loans may attract a higher rate of interest when compared to loans having a higher tenure.
- Repayment capacity: HDFC Bank checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. Borrower’s income, his assets and his creditworthiness is looked into before the bank offers a rate to him. CIBIL Score gives detailed information his repayment capacity as it has all the details of the previous loans he had taken and repaid and it also gives information on how he is paying off his credit card bills.
- Borrowing class: The borrower’s age also plays a crucial role in deciding the interest rate. HDFC Bank offers a personal loan to the salaried individuals only.
- Relationship with the bank: HDFC Bank offers special offers, interest rates and charges for the existing HDFC Bank account holders. Women are offered a special loan, HDFC Bank Personal Loan Diva, this is a tailor-made loan and has more than 100 Diva offers across premium brands and products. This makes it vital for the applicant to have a very good rapport with the bank to avail special discounts and offers. You may even get a discount on the processing charges or the bank might reduce your interest rate to those who have managed to show commitment to making their payments on time in the past.
The interest rates are charged at the sole discretion of the bank and are subject to change.
Key things about HDFC Personal Loan Interest Rates
Before applying for a HDFC Personal Loan, you must know the following factors:
Fixed interest rate is when a fixed rate is set on the personal loan and you have to pay a fixed amount of interest throughout the tenure.
Floating interest rate will change as per the change in the bank’s base lending rate.
To avail a HDFC Personal Loan, you need not have a guarantor or provide security.
When the repo rate goes up, your interest rate will also go up. This must be considered before choosing a floating interest rate.
HDFC banks offer personal loans to salaried individual and they offer the interest rate based on the applicant’s credit score.
