It won’t be anything more than an understatement when we say that a personal loan is the most preferred way for people to look for funds when they are in financial distress. Due to the quick and easy access to funds it provides, the personal loan is becoming immensely popular among the masses. Therefore, it’s not surprising that the Indian marketplace is flooded with a number of personal loan options, each trying to woo the loan seekers with lucrative offers. 

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Of all these, HDFC personal loan, with its selected blend of products, has been able to carve a niche as one of the most feasible personal loan options for Indian loan seekers. With HDFC personal loan, you will get customized solutions whenever you are in need of funds, for any legitimate purpose. In this blog, we will tell you everything you wanted to know about HDFC personal loan interest rates and eligibility

Salient features of an HDFC Bank personal loan

  • Highly competitive rate of interest
  • Complete transparency in loan disbursal procedures 
  • Zero hidden charges, low prepayment charges, low processing fees & convenient repayment options.
  • No guarantor/ collateral or security is needed.
  • Flexible repayment period in the range of 12 to 60 months.
  • Special loan offers for women employees under the HDFC Diva scheme. In this scheme, pre-approved loans up to Rs 3 lakhs are offered to women applicants
  • Applicants can avail an optional Personal Accident cover of up to Rs. 8 lakhs and a Critical Illness cover to a maximum of Rs. 1 lakh. Also, there is a Permanent Disablement cover of up to Rs. 1 lakh. These schemes are offered from HDFC Ergo.
  • Easy HDFC loan payment options including PDCs & ECS.
  • Simplified documentation
  • Easy personal loan balance transfer options are available from HDFC Bank. It offers lower EMIs and interest rates as low as 11.29 % per annum.   

What is HDFC personal loan Eligibility?

Have a look at the table below. It depicts some of the most important points related to the HDFC Bank personal loan eligibility criteria. An applicant should meet these criteria to the satisfaction of the Bank, to become eligible for an HDFC personal loan

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Category Salaried Professionals Self-employed Individuals
Age  21 years to 60 years 25 years to 65 years
Minimum Income NMI ( Net Monthly Income) of Rs. 15,000 for residents in Bangalore, Calcutta, Delhi, Mumbai, Chennai, Pune, Hyderabad, Ahmedabad, and Cochin Rs. 1 lakh per annum
NMI of Rs. 15,000 for the rest of India
Maximum personal Loan Amount Rs. 15 lakh Rs. 20 lakh (Can be increased to Rs. 50 lakh for certain cases in selected locations)
Loan Tenure/repayment period 12 to 60 months 12  to 60 months
Co-applicant Not applicable Not applicable
Continuity of Employment/Business  Should be on a job continuously for at least 2 years. Also, should be working with the present employer for at least 1 year  A post qualification experience of at least 5 years is required for Architects & Company Secretaries (4 years for Doctors & Chartered Accountants).
Credit Score Preferably 700 and above Preferably 700 and above

HDFC personal loan interest rate:

HDFC personal loan Interest Rates offered to customers during Jan’19 -Mar’19 are as follows-

IRR Jan’19 -Mar’19
Minimum IRR 10.99%
Maximum IRR 21.58%
Average IRR 13.08%

Annual Percentage Rate (APR) offered to customers during Jan’19 -Mar’19 are as follows-

APR Jan’19 -Mar’19
Minimum APR 11%
Maximum APR 30.84%
Average APR 13.31%

*Rates are subject to periodic changes. Interest rates in HDFC Bank and other fees/charges are subject to regular reviews and can differ from customer to customer.

Learn more: Can You Fund Your Business with a Personal Loan

How to obtain the best interest rates from HDFC Bank personal loan?

Here we will mention 3 simple ways with which you can stand a great chance of obtaining the best interest rates from HDFC Bank.

1. Opt for a floating rate of interest 

Floating interest rates vary with periodic fluctuations in the market. It allows you to enjoy a low-interest rate if the market rate falls anytime during your personal loan tenure. 

Some people decide to avail fixed interest rates as they prefer to stay safe from unpredictable market fluctuations. HDFC Bank normally keeps the fixed interest rates a bit higher than the floating rates and these rates remain the same through the entire loan tenure. On the other hand, the floating rates are kept a bit low to start with, only to be adjusted with the prevailing market rates that prevail along with the loan tenure.  

We recommend you to go for the floating rates. It will enable you to unlock the best interest rates from HDFC personal loan. It will make even better sense if you choose short-term personal loans from HDFC. In this case, you are more likely to repay the personal loan before the interest rate gets to a level that is too high for your comfort. 

2. Improve  your credit profile/credit score 

The HDFC Bank ascertains the credit risk by scrutinizing the credit score of the applicants. If you are hoping to obtain the best rates from HDFC, you should do due diligence to improve your credit score before applying (if at all, it is low at this moment). You can always check your credit report from CIBIL and other bureaus and report in case there is a mistake. A higher credit score will project you to be more creditworthy to the Bank. However, a poor credit score will put your loan application on the verge of getting rejected. Also, if you have a ‘below-par’ credit score, you may be charged higher interest rates by the Bank as compared to others with excellent credit scores.

Read more: How to survive and improve despite credit score issues?

In case you have a poor credit score at present, you should give yourself some time (may be a couple of months) to improve it by taking corrective measures. Meanwhile, you may correct your financial habits and clear outstanding debts as fast as possible. All these measures will help you a great deal to boost your credit score. A boost in your credit score will surely put you in better shape to avail the best HDFC personal loan interest rates in a foreseeable future.

3. Look for seasonal offers

HDFC periodically announces special personal loan offers and inform potential customers through emails/SMS. Be on the lookout for such offers where attractive schemes are available with comparatively lower interest rates. HDFC personal loan also offers such schemes with limited period discounts during festivals Diwali, Eid and Durga Puja.  If you are already having personal loans from other lenders, you can watch out for the HDFC personal loan balance transfer schemes too during these festivals.

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