HDFC Bank emerges as one of the most popular choices for availing financial services including a personal loan. This loan can be availed for several purposes such as marriage, education, medical treatment, etc. As the bank enjoys a PAN India presence with about 5,000 branches across the country, the demand for its personal loan is palpable with most queuing up both online and offline to grab the same.
The most fascinating thing is that the loans are customized to meet unique needs, well backed up by lower interest rates to reduce the cost of borrowing. Now that HDFC personal loan is appealing to the eye, it makes a case for a complete study.
How Does HDFC Personal Loan Interest Rate Impact Your Repayment?
You must know that HDFC charges an interest rate of 15.75%-20% on its personal loans. The rate is decided primarily on the basis of income, credit score and the repayment potential a candidate may have. Lower the interest rate, lesser would be the EMI and vice-versa.
Your income must be such to repay the EMI applicable to a loan. The income actually determines the repayment potential to a great extent. Since it’s a personal loan granted without the submission of any collateral, lenders like HDFC Bank would like to see whether you have a spotless credit record or not. If so, a loan with lower rates is an outright possibility. On the other side, the credit history marred by defaults may just bring down the credit score. In that case, either the loan eligibility would reduce or the interest rates would go up, not creating an ideal situation for you.
How to Use HDFC Personal Loan Calculator to Your Advantage?
The term calculator has a broader connotation, much different from the popular perception of it being a device to calculate the EMI alone. There are different HDFC personal loan calculators serving different purposes. While the eligibility calculator focuses on indicating the loan amount you are eligible for, the EMI and amortization calculators show the installment payable as well as a distribution of repayment over the loan tenure you go with. Now that the installment carries a portion of interest, a borrower can get to know the quantum of interest payable with the same.
On the other side, the amortization calculator shows a schedule of interest and principal repayments over the course of a loan. You can see the schedule on a year-on-year basis. At the same time, the outstanding loan balance is also shown year-by-year, helping you strategize an effective investment plan to mop up your earnings and pay off the loan in midway. So, personal loan calculator HDFC is a vital tool that you should use and act upon while applying for a debt.
How Should You Apply for HDFC Personal Loan?
Well, you have the option to either visit the HDFC Bank website or the nearest branch to apply for a personal loan. In either of the two, you need to fill in the personal and professional details before submitting the application. The details are then checked thoroughly and on finding it credible does the bank nod for the application.