Clear Your Doubts on HDB Personal Loan Interest Rate

When it comes to availing a personal loan from the best lender, it is surely not everyone’s cup of tea. That’s right! With plenty of renowned banks as well as NBFCs available in the market, it is definitely a tedious task to select the best lender. But not anymore because we are here to help you.

Talking about leading names, how can HDB Financial be missed? Yes, that’s true! Being considered as a reputed name in the financial world, it would not be wrong to say that by offering the personal loans this lender caters the multiple needs of many. But before we talk about the features and benefits being offered by this unsecured loan, it is important to talk about HDB personal loan interest rate first. Well, the interest rate is something which is surely the most crucial factor in your overall loan journey as it is a deciding factor that can either make or break the situation for you. So, how can we miss talking about the same?

This lender is offering the personal loan at an interest rate upto 36% per annum for a tenure ranging from 12 to 60 months. As far as loan amount is concerned, this NBFC allows you to avail a loan of upto 20 Lakhs along with charging a one-time processing fee of 3% of the loan amount. Not only this, the prepayment/foreclosure charges stand between 2%-4% of the principal outstanding. Now, you must be wondering why we have mentioned the same. Well, let’s just give you more clarity on the same in the article below.

There are so many factors that revolve around the rates and have a direct impact on your overall loan journey. Yes, the higher the rates are, the more EMI amount you need to pay to the lender. In fact, your overall interest outgo also increases with the same. And, the reverse will happen, if the rates are lower. Let’s just understand the same with the help of the examples below.

Scenario: 1

Suppose, Akash Sharma, a 28-year-old, Manager by profession is looking to avail a personal loan of ₹3 Lakh to plan a vacation with his family in Singapore. One lender has agreed to offer him the same amount at an interest rate of 14% per annum for a tenure of 4 years. Thus, if he agrees to avail the same, he needs to pay an EMI of ₹8,198 with an interest of ₹93,501.

Scenario: 2

Suppose, Raman Mehra, a 32-year-old, Internet Marketing Head by profession wants to avail a loan of ₹3 Lakh to renovate his home. One lender is offering him the said loan amount at an interest rate of 11% per annum for a tenure of 4 years. So, in this case, he needs to pay an EMI amount of ₹7,754 along with an interest of ₹72,176.

So, if you compare both the scenario, you can easily find out how the change in interest rate can lead to a big difference. The higher the rates are, the more burden will be on your shoulders to repay the loan with bigger EMI amount.

Now that you have known how the variation in rates can impact your EMI and Interest Outgo, let’s just throw some on other crucial aspects as well. Yes, there are some factors that have a direct impact on HDB personal loan interest rate. Just read the article further to know about them.

Age, Income, Credit Score, Monthly Expenses,Other Financial Liabilities, Relationship with the Lender, etc. These are the factors that allow you to grab the best deal at competitive rates. If you fit into each of these factors and sounds appealing to the lender, there might be a possibility for you to negotiate for the lower rates with the lender. By negotiating the same, your interest rates can be reduced, hence allows you to save more with reduced EMIs and interest outgo. Thus, all in all, a less burden will be there on your pocket when it comes to loan repayment.

Well, hope you now understood the significance of interest rate, thus will surely pay attention on the same in the future!