HDFC Personal Loan Interest Rates for the Year 2014

Personal Loans are easily obtainable loans for an urgent financial need without any need for a security for any emergency. The reasons for applying for a personal loan could be anything, be it wedding expenses, vacation booking, medical emergencies, policy dues, furnishing the house, any outstanding debts, or any financial urgency. Whatever your need may be, HDFC bank offers attractive personal loan schemes, according to the requirement of the customers.

In personal loans, the risk involved from the lender side is more; and in order to compensate for this, the interest rates of all personal loans are higher compared to other available loans. Generally, HDFC Personal Loan is an unsecured loan where nothing is pledged against the loan and, hence, HDFC personal loan interest rate ranges between 11.99% to 20%, depending on the loan amount and the category of the borrower. 

HDFC Personal Loan Interest Rates 2014

The HDFC personal loan interest rates are calculated by two methods, monthly reducing basis and on an annual basis. The annual basis is a fixed interest rate type; whereas in the monthly reducing basis, when a portion of the principal amount is paid, the next month personal loan interest rate is calculated on the remaining principal amount and this goes on till the last EMI. It is advisable to opt for monthly reducing basis interest rate as this is more beneficial and cost effective in the long run.

Banks believe that if the salary of an applicant is less, the chances to repay the loan amount are also less; hence, they charge a higher rate of interest. A special HDFC personal loan interest rate of 11.99% to 13.75% is available for a loan amount between Rs 10 Lakhs to 20 Lakhs. For special companies, this rate varies from 13.75% to 14.75%. The maximum interest rate 18% is for those with a salary below Rs. 35,000. All HDFC loans come with a processing fee and the HDFC personal loan processing charges are 0.8% to 1.75% for special companies, 2% for HDFC account holders and 2.5% for others.

Hence, anyone can avail personal loans from HDFC, provided the credit history is clear and the following eligibility criteria are fulfilled.

Firstly, the credit report provided by CIBIL should be positive, i.e. the greater the score, the more the possibility of loan approval. Next is the basic requirement such as the age limit of the applicant that starts from 21 to 60 years at the time of loan maturity, employment history of 2 years, job continuity certificate in the current job, and the net monthly income should be between Rs. 15,000 to Rs.20, 000. With the above eligibility, a loan amount of Rs. 50, 000 to Rs. 15,00,000 can be approved for tenure of 12 to 60 months.

The necessary documents, including the age proof, identity proof, residential proof, job continuity proof and banking history are required to be attached while applying for an HDFC personal loan either online or at the nearest HDFC branches. After a few required verifications, the loan is disbursed between 1-7 days.