Credit is a wonderful mechanism that can allow you to do and possess assets much beyond your normal means. Understanding the evolving needs of the customers, banks and financial institutions have come up with various modifications to the way the credit is packaged and made it more amenable to the customer.
It is also very important to understand that the need for credit could arise at any moment. It could be a medical emergency, need to travel, meeting some unexpected expenses of a child studying abroad or a plain cash crunch towards the end of the month. During these situations, you may find it difficult to avail a normal loan, considering the need for documentation and the time involved in the loan disbursal.
To meet the instant credit requirements of individuals, HDFC Bank has introduced a two new products under the category of Loan On Credit Card.
A Loan on Credit Card involves taking a Loan against your credit card limit to meet any urgent requirement for credit without hassles.
Which are the Two Different Products Available Under Loan on Credit Card by HDFC Bank?
The two different products introduced by HDFC Bank are:
HDFC Bank Insta Loan
HDFC Bank Insta Jumbo Loan
Both these loans are pre-approved loans for credit card holders of HDFC Bank. The pre-approval is given based on various rating criteria of the bank, which may include your credit score and others.
Additional Reading: How Do I Apply Online for An Instant Personal Loan?
What are the Important Features of HDFC Insta Loans?
The main features of HDFC Bank Insta Loans are:
HDFC Bank Insta Loans are pre-approved loans that can be availed by HDFC Bank Credit Card holders.
This loan is approved against the credit limit of the HDFC Bank Credit Card holder. So, the credit limit gets reduced by the amount of the loan availed. Also the cash limit on the card becomes zero.
The main feature of the loan is that it is disbursed within a few seconds as a credit in the savings bank account or as a Demand Draft to the customer.
The tenure of the loan can be decided by the customer. Flexible tenure options are available.
A Loan Protection Cover is also available for any loans booked with amount up to a maximum of Rs 10 lakh and tenure up to 60 months which will be secured under this cover.
Absolutely no documentation is required for Insta Loan.
What are the Important Features of HDFC Bank Insta Jumbo Loan?
The important features of HDFC Bank Insta Jumbo Loan are:
This is also a pre-approved loan made available only to a select few who meet the eligibility criteria set by the bank.
Insta Jumbo Loan allows a customer to avail a loan which is over and above the limit of your credit card.
The best benefit here being , the credit limit of your card is not blocked.
This pre-approved loan is instantly credited to your HDFC Bank Savings account or can be availed as a Demand Draft.
As HDFC Bank Insta Loan, a Jumbo Loan is also covered by Loan Protection Insurance. Your loan is secured against inevitable/ unforeseen accidental death. Customer's liability towards principal outstanding will be covered and the amount paid up by customer already will be settled to the kith or kin after they have raised claim with insurer. Loan Protection is a product feature, hence any loans booked with amount up to a maximum of Rs 10 lakh and tenure up to 60 months will be secured under this cover.
This loan is free from need for any documentation.
What is the Procedure for Availing HDFC Bank's Insta Loan and Insta Jumbo Loan?
The procedure for availing both the Insta Loans is same and is quite user friendly.
You could login to HDFC Bank Netbanking and click Cards>Transact > Insta Loans or Jumbo Insta Loan depending upon your requirement.
You could also call the phone banking number of HDFC Bank at any time.
You could get a call back from a sales executive with details of eligible amount, rate of interest and other loan details . You could immediately book the loan which is disbursed to your account.
If your phone number if registered with DNC /NDNC /DND directories, then you will receive an SMS with the eligible amount, the tenure and interest rate. If you are interested in applying after accepting the terms & conditions listed in the HDFC Bank website, you could send the short code mentioned in the SMS.
What is the Repayment Procedure for Insta Loans?
You must be very happy to know that Insta Loans are very easy to avail and disbursed quite quickly. At the same time, it is also important to learn about the repayment procedure for the same.
HDFC Bank Insta Loan
The monthly EMI amount will depend on the tenure chosen by you. The EMI amount along with GST will be billed in the monthly statement, starting from the immediate billing cycle date and be part of the Minimum Amount Due (MAD) appearing in your monthly HDFC Bank Credit Card statement. Payment of MAD is required to keep your card regular. Interest & other applicable charges are levied on the balance outstanding.
Additional Reading: How to close Insta Loan in HDFC?
HDFC Bank Jumbo Insta Loan
As the Insta Jumbo Loan involves going beyond the existing credit limit, the payment procedure is slightly different as detailed below:
For Non HDFC Bank Savings Account Holders
A new card number will be created for the Insta Jumbo Loan account, and you will receive a separate monthly statement for the loan account.
The billing cycle date & payment due date will be the same as your credit card account.
EMIs will be billed in the monthly Jumbo Loan account statement starting from the immediate billing cycle date.
For HDFC Bank Savings Account Holders
Auto Pay for Jumbo Loan EMI Debit will be activated within 7 days from the date of loan booking. Your savings account will be debited for the total amount due on the payment due date as indicated in the Jumbo Loan monthly statement, or within 5 working days from the payment due date.
What is the Rate of Interest and Other Charges levied on the Insta Loans?
It is worthwhile to be aware about the Rate of Interest and any other associated charges with both the Insta loans so that you can make an informed decision.
For HDFC Bank Insta Loan
A Processing Fee of up to Rs. 600, (Exclusive of GST for all loan amounts) depending on the customer’s eligibility/offer details can be levied.
The loan once approved, can only be pre-closed.
In case of pre-closure of the loan, a charge, currently (subject to change) 3% of the balance principal outstanding plus GST is applicable. Along with pre-closure charges, pro-rata interest applicable and credit card outstanding balance at the time of pre-closure have to be repaid for pre-closure of the loan.
Rate of Interest is decided on a case-to-case basis.
For HDFC Bank Jumbo Insta Loans
A processing fee of up to Rs. 799/- will be charged based on the customer's eligibility and offer details.
Credit score verification will be done post application for the loan and only customers with good credit score will be considered for further processing.
Partial pre-payment or partial closure is not permitted on this loan. Full pre-closure is charged at 3% which is subject to change.
Prior to completion of the Loan/ Pre-closure, whichever is earlier, you cannot withdraw/ cancel auto debit instruction on your loan.
Both these loans can prove useful when you are in cases of dire emergencies. However, in all other cases, you would need to take into account the interest charged on these loans vis-à-vis a normal personal loan before availing Insta Loans just for the sake of convenience.
- What is Insta Loan in HDFC?
Insta Loan is a pre-approved loan offered by HDFC to select credit cardholders of the bank. The loan amount is restricted up to the credit limit available while loan processing. The credit limit is set to the extent of the loan amount. The cash withdrawal facilities are also blocked.
- How does HDFC Insta loan work?
HDFC Bank Insta Loans are pre-approved loans available for HDFC Bank Credit Cardholders. This loan is available against the credit limit of the HDFC Bank Credit Cardholder. Thus, the credit limit is reduced by the amount of the loan availed by the credit cardholder. After availing of this loan, the cash limit on the card turns to zero.
- How can I check my insta loan in HDFC?
To check your eligibility, you can visit the NetBanking or Phone banking services of the bank. Alternatively, you can visit the nearest bank branch to check your eligibility. You can also receive an SMS to your registered mobile number clarifying your eligibility to avail of the HDFC Insta Loan.
- How can I get an HDFC Insta foreclosure loan?
Closing the Insta Loan is similar to the closure process of all other loans with HDFC Bank. After completing all the repayments, you can reach out to the customer support of HDFC Bank and request a 'No Objection Certificate' (NOC). You can also pre-close the loan before the loan tenure is complete.
- Is a personal loan or Insta Loan better?
When it comes to the disbursal time, Instant loans take only a few minutes to be disbursed whereas a personal loan may take up to 4 to 5 days to be disbursed. Therefore, insta loans are ideal for urgent cash requirements and one doesn’t have to wait long for the money to be disbursed.