Short Term HDFC Personal Loan- Benefits, Eligibility and Interest Rate

Monali is a young professional in her first job and is all of 27. She wanted a personal loan of Rs 30000 to finance a trip with her family to Mumbai. But she was denied loans by many banks as she had no credit history to show up. Also, most banks/NBFCs hesitated to provide loans for such small amounts. Then a friend suggested her to go for short term personal loans from HDFC. She applied for it online and got the amount in her account the next day!

As the name suggests, the HDFC personal loan is provided for a short tenure (can be as short as one month!). These are fast financing options and require no collateral/security. The interest for these one-time loans needs to be paid on the principal advance.

Features and benefits of HDFC short-term personal loans

1.  Minimal/Nil documentation

While applying for short term personal loans from HDFC, you just need to provide a few simple documents. Also, you can apply for these loans through the online platform of HDFC. The process of application is easy and simple. You can even have a completely paperless experience depending upon your profile

 2. Can be used for any purpose

HDFC short term personal loans are flexible and can be used for any genuine purpose. You can use the funds for paying education fees, covering wedding expenses, buying household furniture, planning a vacation with family, home renovation or in case of a medical emergency. No question will be asked regarding the end-use of funds.

3. Amount of loan sanctioned

Short term Business loans from HDFC are availed by people for addressing their short term financial needs. You can avail these loans for an amount as low as Rs 1500. The maximum loan amount can go up to Rs 10 lakhs. 

4. No security is required for availing such loans

HDFC short term personal loans are unsecured loans with smaller loan amounts. As such, you need not provide any security to cover for the loan amount. Hence, such loans fit the bill perfectly for young professionals who struggle to obtain an unsecured loan otherwise. These loans are also useful for people who cannot afford any security/collateral for availing personal loans.

5. Fast disbursal-

Short term personal loans from HDFC are sanctioned quicker than any other loan types. As these loans require minimal documentation and there is no need for security/collaterals, the overall disbursal process becomes simpler and faster. 

6.  Flexible repayment terms-

As the repayment periods for these loans are short, it reduces the financial burden on the customers. If your repayment tenure is less than 30 days, you need to pay the full loan amount towards the end of your tenure. EMI is an option for you if your repayment tenure is over 2 months. You can also pay back the loan through multiple modes such as RTGS, UPI and NEFT as per your convenience.

7. Long-term commitment is not required

As short-term loans involve smaller loan amounts and are provided for shorter tenures, the risk associated with these loans is almost negligible. In contrast, long-term loans require a longer period of commitment and this increases the uncertainty and the risk of default for the Bank. Therefore, the HDFC Bank does not hesitate to approve short term personal loans to needy applicants. 

Eligibility criteria for availing HDFC short term personal loans

 An applicant needs to follow the below-mentioned eligibility criteria while applying for HDFC short term personal loans-

• He must be an Indian resident.

• The applicant must be over 18 years of age.

• He should be either salaried /self-employed or a business professional.

• He must own a savings bank account with HDFC Bank.

• The applicant must have a minimum NMI (Net Monthly Income) of Rs 15000 

• A minimum work experience of 2 years is needed for salaried individuals. The business owners should be at the current for at least 1 year.

About HDFC

HDFC Bank is one of India’s premier financial institutions. It has made quite a name for itself by offering quality services in diverse areas such as personal banking, corporate banking, insurance and trading and investments. It was established in 1994 by the Housing Development Finance Corporation. As of June 2017, HDFC had a distribution network with over 4500 branches and over 12000 ATMs in 2,666 cities/towns across the country. Their products and services include both wholesale and retail banking (with bank accounts, loans, credit cards and treasury services). 

HDFC personal loan interest rate

Interest Rates offered to HDFC customers during the Quarter 1 of 2019 are as follows-

Annual Percentage Rate (APR) offered to HDFC customers during the Quarter 1 of 2019 are as follows-

*Rates are subject to periodic changes. Personal loan interest rates in HDFC Bank are subject to regular reviews and can vary from customer to customer depending upon a number of factors.