Saturday, August 13, 2022

HDFC Personal Loan Interest Rate & Other Applicable Charges

HDFC Personal Loan Interest Rate starts from 10.50% per annum which is the lowest in the market. And if you want to get the advantage of the HDFC Personal Loan, do check your eligibility first. Besides the interest rate, HDFC Bank also charges processing fees, penalty charges, stamp duty, and other statutory charges as applicable by the law. Read this page and know more about the HDFC Personal Loan Interest Rate and other fees or charges.

How to Get the Minimum HDFC Personal Loan Interest Rate?

For the lowest interest rate on your loan amount, you need to look out for the below-mentioned factors –

Loan Amount – If your loan amount is not high, there will be less risk attached to it, so you can negotiate for a lower interest rate. This could be possible if you’re borrowing a minimum amount of INR 50,000 or INR 1 Lakh. 

Income – A minimum INR 25,000 per month salary is required to borrow a personal loan from HDFC Bank. And if you’re barely meeting the eligibility criteria, it could be difficult for you to negotiate on the Personal Loan Interest Rate. Whereas, if you earn more than the required limit, the bank would consider providing relaxation on interest rates due to the high repayment capacity.

Age – A younger applicant will be more likely to get a lower interest rate on the loan amount. And this is because of his/her life expectancy and regular flow of income. Applicants near the retirement age such as 58 or 60 years may find income flow issues affecting their repayment. This is why lower rate negotiations are open for younger loan applicants aged 21 years and not more than 50 years. If you meet the income criteria, the bank would consider you for the low Personal Loan Interest Rate irrespective of the age difference. 

Credit Score – A three-digit credit score shows how well you pay the loan and credit card bills. A score of 750 is considered ideal for lowest Personal Loan Interest Rate negotiations. So, do check your credit score before applying for HDFC Personal Loan to know whether it can help you get lower rates or not. 

What Other Charges Does HDFC Bank Apply on a Personal Loan?

The bank charges the following from the customers –

Processing Fee – It is reduced from the loan amount when the loan request is approved. This is subject to a maximum of 2.50% of the loan amount for salaried applicants. So, if you borrow INR 5 Lakh from HDFC Bank, a processing fee of a maximum of INR 12,500 will be reduced from the loan amount. It means, only INR 5,87,500 will be disbursed to your account.

Note – This is a non-refundable amount, so in case you cancel HDFC Personal Loan, the processing fee won’t be returned.

Penalty Charge – When you miss HDFC Personal Loan EMI payment, a 2% penalty will be applicable on the due amount. If the non-payment continues, the penalty will increase as well. And this could result in huge debt. So, it is advised to opt for suitable repayment methods to avoid such situations.

Prepayment Fee – If you decide to prepay the HDFC Personal Loan, the bank will charge a prepayment fee. This prepayment facility, which means the payment of the entire loan before the scheduled close, is allowed to the borrower after continuous payment of 12 EMIs. Check out the applicable charge at different intervals –

  • 4% of the loan balance amount if you prepay during 13 months to 24 months
  • 3% of the loan balance amount if you prepay during 25 months to 36 months
  • 2% of the loan balance amount if you prepay after 34 months of EMI payment

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