HDFC Personal Loan Interest Rates

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.