HDFC Personal Loan Interest Rate commences from 10.25% per annum. And if you want this lowest rate on your borrowed amount, you need to assure the bank that you’re capable of repayment. And how to do that? You will need to build your credibility with high income and impeccable repayment records of credit cards and loans.
You may ask – Do I get preferred for a lower rate if I am an existing customer? Yes, that may be the case if you have a good relationship with the bank. And good in the sense that you have repaid all the loans or bills timely without penalty and maintained your savings or salary account. Read this page and know about the factors that’ll help decide your HDFC personal loan interest rate.
What is HDFC Personal Loan Interest Rate?
It is a percentage of the amount that you’ll pay above the borrowed money. The bank will charge this rate based on your creditworthiness. The more you are worthy of borrowing a loan amount, the less will be the interest rate. And vice versa will be the case for some applicants.
How to Get the Lowest HDFC Personal Loan Interest Rate?
You can get some relaxation on HDFC personal loan interest rate if you take care of the following –
Monthly Income Available for EMI Payments
Your minimum income should be at least INR 25,000 if you want a personal loan from HDFC Bank. And that income may not help you in getting a lower rate of interest. So, apply for an HDFC personal loan only if your income is more than its minimum criterion. Because if you barely meet its eligibility, it means the loan amount won’t be high, the interest rate could be more. The higher rates will only make it challenging for you to sustain your day-to-day expenses.
Previous Repayment Record That Can be Either Be Helpful or Bad for Your Loan Application
If you have borrowed loan or credit cards, a credit score is built based on your payment and money utilization. A credit score represents the repayment capability of an individual, if the score is 750 or more, the applicant is considered highly eligible for a loan.
So, do check your credit score and use it to lower the HDFC personal loan interest rate by as much as you can. If the HDFC personal loan is your first loan, you may not have a credit score for it to evaluate. At such times, HDFC Bank can sanction loans based on your salary or savings account with it.
Current Obligations Such as Credit Card Bills, Loan EMIs
When you have ongoing loans or credit card bills, it would be difficult for HDFC Bank to lend you money at a lower rate. Because there is already too much in your hand and you might default on the EMIs. So, HDFC Bank would most likely charge a high rate of interest.
Moreover, the HDFC Personal EMI and other obligations are putting you in a tricky position, consider applying along with a co-borrower. Here, the loan repayment obligations will be split among both of you. You can make your wife, father, mother, son, daughter a co-borrower. Remember, the co-borrower must earn the amount needed by HDFC Bank for a personal loan.
Is There Any Tool That Can Help You Manage HDFC Personal Loan Interest Payouts?
Yes, by using the personal loan EMI calculator, you can find out the total amount payable in respect of interest. To use this calculator, you need to follow the below instructions –
- Visit the official website of HDFC Bank
- Go to the borrow section and select ‘personal loan’ from the dropdown
- On the page, you can see the EMI calculator
- Now, all you need to do is enter your loan amount, interest rate, and tenure
- Click on the ‘Calculate’ button
Let’s check out the below example and see how we can reduce our interest component by choosing the right tenure.
Rama borrowed HDFC personal loan without checking the total payable interest and now he isn’t able to continue his EMI payment and the interest burden keeps on increasing. If he had used the HDFC loan EMI calculator, he could have made a calculative decision.
- Loan amount – INR 10 Lakh
- Interest rate – 12.00% per annum
The total payable HDFC personal loan interest
- For a three-year tenure – INR 1,95,215
- A four-year tenure – INR 2,64,024
- For a five-year tenure – INR 3,34,667