Revealed-How Much Affordable HDFC Personal Loan Interest Rates Are?

Dream is something called an integral part of the human culture and it undergoes a change from time to time given the dynamics of the rapidly moving world. In the early days of school, kids wait for the summer vacation to arrive so that they can enjoy in luxurious water parks packed with amenities to enjoy. As  we grow older, the focus is on topping the professional chart by becoming the best in the chosen work. Spending few years in the profession, you could start making ambitious travel plans, keeping the most exotic locations of the world in your itinerary. There could also be concerns of an impending marriage of your sibling. All these need money and in fact, a large sum of money. Many may not have. But buddy, don’t be disappointed as HDFC Bank is right here to help meet all your needs and dreams with a personal loan. But will it be affordable in your case? Well, the answer lies in its interest rates. So, find HDFC Personal Loan Interest Rates here and see what impacts they can have on your finances.

HDFC Personal Loan Interest Rates & Other Details

One of the most affordable options available, HDFC Bank Personal Loan can be given at an interest rate as low as 10.99% per annum. At the moment, the bank disburses at 10.99%-19.50% per annum for a period of upto 5 years. So, if you are in the age of 21-60 years with a minimum income of ₹15,000-20,000 per month, you are well on the way to grab a personal loan. Also important is to hold an overall work experience of 2 years with a minimum of 1 year with the present organization. But what can negate your case is the poor credit history resulting from constant default in the loan and credit card repayment in the past. If you are miles away from the default syndrome, a maximum loan of ₹15 lakhs-25 lakhs can be given based on your income and repayment capacity.

Do the Loan Math via HDFC Personal Loan EMI Calculator

After getting briefed on the bank’s personal loan offer, let’s come to do some mathematics with respect to the loan by taking cues from the EMI calculator. EMI, the short form of Equated Monthly Installment, includes both interest and principal portions which have to be repaid each month. Lower the EMI, greater will be the cushion for your pocket that has some other expenses to bear. What does the calculator do to figure out the EMI? It takes into account the loan amount, interest rate and the tenure to do so.. Check out the formula below to calculate the monthly installment.

E = P . r . (1+r)^n/((1+r)^n – 1)

where,

E = EMI  

P = Principal Loan Amount

r = Interest Rate

n = Monthly Loan Tenure

Obviously, the most critical of three is undoubtedly the interest rate. So, while applying for a loan, the focus should be to get the interest rate lowered by HDFC Bank. Another aspect concerning the calculator is the tenure, which many do not pay heed to. With a view to pay a lower amount of EMI, many borrowers tend to opt for a longer tenure. But it comes with a possibility of massive interest outflow which can be avoided by selecting a relatively shorter tenure. This aspect can be best understood with the help of an example.

Example- Sakshi Mittal is servicing the personal loan of 5 lakhs at 12% for 5 years at HDFC Bank. Her friend Vinita Sahai chose the same loan amount at the same interest rate but opted for a shorter tenure of 4 years. Sakshi’s EMI and interest repayment are likely to be ₹17,796 and ₹ 2,67,733. On the other side, Vinita would pay a higher EMI of ₹21,067 but would be able to cut down the interest repayment to ₹2,11,219. An interest of ₹56,514 can be saved by Vinita with a 4-year loan tenure.

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How to Apply for HDFC Personal Loan?

So, all set to apply for HDFC Personal Loan? But want to know how to do that? You can use the convenient option of HDFC Personal Loan Apply Online. It helps you compare the rates better. Just mention a few personal and professional details and submit your application to the bank, which will investigate the details sent and disburse the loan based on your eligibility. But if you are more into traditional banking, then apply at the nearest HDFC Bank branch.

HDFC Personal Loan Interest Rates, I suppose, is elaborated in the best manner possible. So, keep having a higher CIBIL score and have a smooth  sail with respect to your loan application. Also, don’t get your eyes off from the repayment capability you possess. After assessing the same, you should decide the loan amount, interest rate and the tenure you are comfortable with.