HDFC personal loan for ₹10 lakh: Eligibility, interest rates and application process explained

A ₹10 lakh personal loan is a big financial decision, knowing what interest rates are offered by the various lenders, including HDFC Bank, will go a long way in making that decision. Here's an in-depth rundown of HDFC's personal loan interest rates and application process.

Understanding personal loans

An unsecured loan called a personal loan allows you to borrow a specific amount for a variety of reasons, including:

• Debt consolidation
• Home remodelling
• Health emergencies
• Major life events, such as weddings or vacations

Personal loans do not require collateral. Instead, they are approved based on your creditworthiness. Repayment involves fixed monthly payments over a specified period of time.

How to secure lower interest rates on HDFC personal loans for ₹10 lakh?

Consider the following tips to get a good HDFC personal loan interest rate,

• Maintain your credit score high: You should maintain your credit score above 650.
• Use existing networks: Reach out to banks or NBFCs where you already have some sort of connections or accounts.
• Watch market trends: Keep yourself updated about the interest rates on personal loans that the top banks and NBFCs are offering.
• Utilize online resources: Use online financial markets to compare HDFC's interest rates with that of other lenders.
• Pre-approved offers: Check your bank or NBFC for pre-approved loan offers.

HDFC's personal loan for ₹10 lakh interest rate calculation method

HDFC Bank calculates interest on personal loans through the lowering balance approach as a month. It goes like this:

1. The owed amount's principal balances are calculated for interest.
2. A larger percentage of the EMI (equated monthly instalment) will go to the interest pay in the first few months of the loan tenure.
3. The interest component decreases with time as the principal amount declines as well.

HDFC Bank personal loan for ₹10 lakh interest rate

(Source: Bank website)

HDFC personal loan interest rates begin at 10.85% per annum. The repayment periods are one to five years. However, factors such as loan tenure, credit score, and income stability determine the exact rate.

Eligibility criteria for applying in HDFC Bank personal loan for ₹10 lakh

If you meet these criteria, you may be eligible for an HDFC personal loan:

• Employment: Employees of private companies, state or central governments, or public sector undertakings.
• Age group: 21–60 years.
• Work experience: Must have worked in the current company for at least one year and a minimum of two years in total.
• Income: Minimum net income is ₹25,000 per month.

Documents required for HDFC Bank personal loan for ₹10 lakh

Following is the document required for applying to HDFC personal loan:

• Identity proof: Passport, Aadhaar card, PAN card, or Voter ID.
• Address proof: Passport, Aadhaar card, Driving license, PAN card, or Voter ID.
• Income proof: Bank statement of previous 3 months, latest salary slip or Form 16.

In conclusion, a personal loan can be a handy financial tool for various purposes. It is, therefore, important to understand the terms and conditions well, compare the interest rates from different lenders, and evaluate your financial condition before applying. Remember that loan terms and interest rates vary according to certain conditions, so for the latest details, visit HDFC Bank's website. Do not always depend on personal loans, as they generally have higher interest rates in comparison to other types of loans, and it can lead you to enter a debt trap.

(Note: Personal loan interest rates and other provisions keep changing with time. Readers are advised to check the relevant bank's official website for the latest updates.)