Short-term financial emergencies often pop up, and they are inevitable. Gathering funds instantly at such circumstances could be hard especially when you must apply for a loan from a bank or an NBFC. The amount of time taken for documentation and loan processing can be tedious, making you more desperate for the money. On the contrary, getting an instant loan can be a piece of cake if you hold a HDFC Bank Credit Card.

Realising the value of time, HDFC Bank offers Insta Loans to their credit cardholders against the credit limit without any documentation. Take a look Insta Loan’s features and benefits in detail.

Features and Benefits of HDFC Bank Insta Loan

Following are the features and benefits of Insta Loans available from HDFC Bank:

Loan Amount: There is no minimum or maximum loan amount fixed by the bank. The loan amount is determined based on the credit limit of the cardholder and past repayment record.

Interest Rate: The interest rate on HDFC Bank Insta Loans varies for different individuals based on their credit history, tenure and loan amount.

Loan Protection Cover: This is an added advantage of availing HDFC Bank Insta Loan. The loan amount is secured by an insurance cover against accidental death. The outstanding balance will be covered by insurance, and the loan amount already paid will be settled to the nominees.

This insurance feature is available for the loan amount up to Rs. 10 lakhs with the maximum tenure of 5 years. The nominee can initiate the claim by informing the bank about the demise of the borrower.

Documentation: The process is quick and there is absolutely no documentation required to get HDFC Bank Insta Loan.

Tenure: The maximum repayment period on this loan is up to 60 months.

Processing Fee: The maximum processing fee is up to Rs. 600 which depends on the applicant’s eligibility and loan offer.

Pre-closure: You can pre-close the Insta Loan after the disbursal. The bank levies a pre-closure charge of 3% of the outstanding balance. However, this is subject to change at the sole discretion of the bank.

How to Apply for HDFC Bank Insta Loan?

Before applying for the loan, you need to check whether you are eligible for the loan. After finding out your eligibility, you can apply for HDFC Bank Insta Loan through the following ways.

NetBanking

  1. Login to the official website of the bank using your credentials

  2. Click on ‘Cards’ and choose ‘Credit Card’

  3. Go to ‘Transact’ and select Insta Loan

  4. You will now be shown the eligible loan amount

  5. Underneath you can type the loan amount you require, select the tenure and interest rate. 

  6. After checking out the terms and conditions, you can submit the request.

  7. You will now receive an OTP to your registered mobile number.

  8. Post verification, the loan amount will be disbursed to your HDFC Bank savings account. 

The interest rate may vary based on the applicant’s past payment record and credit profile. The process is instantaneous, and no documentation required to carry out the process. Post approval, the loan amount will be credited to your HDFC Bank savings account.

Mobile Banking

You can call the customer care support of HDFC Bank and request for your loan eligibility. The executive of the bank will be able to tell you about the eligible loan amount, interest rate, tenure and EMI instantly based on your card details. Post your consent to the terms, your loan amount will be disbursed to your bank account.

As the loan amount is pre-approved, there is no documentation required for the loan approval. You will get an SMS about the eligible loan amount, tenure and interest rate to your registered mobile number. You will be asked to confirm the details with the short code sent in the SMS.

Loan Repayment Model of HDFC Bank Insta Loan

Assuming the interest rate is fixed at 1.25% per annum, following is the repayment options for various loan amounts.

 

Loan Amount (in Rs) 12 Months 18 Months 24 Months 36 Months 48 Months
50,000 4,513 3,119 2,424 1,755 1,392
1 Lakh 9,026 6,238 4,849 3,467 2,783
2 Lakhs 18,052 12,477 9,697 6,933 5,566
3 Lakhs 27,077 18,715 14,546 10,400 8,349
4 Lakhs 36,103 24,954 19,395 13,866 11,132
5 Lakhs 45,129 31,192 24,243 17,333 13,915

 

Things You Should Know Before Applying For HDFC Bank Insta Loan

  • Not all HDFC Bank Credit Cardholders are eligible for the Insta Loan. The bank holds the right to decide the eligibility as per their internal policy and guidelines. An applicant with poor repayment records in the past may not be eligible for the loan. 

  • For the first EMI, interest rate will be calculated from the date of loan booking to the payment due date. 

  • You can avail the loan amount equal to the credit limit or less than that based on your eligibility. After the disbursal, the loan amount will be blocked against the credit limit and your cash withdrawal limit will become zero. You won’t be able to withdraw any cash from ATMs after taking the loan. 

  • The loan amount taken through Demand Draft will take up to 7 working days to get delivered. 

  • Minimum amount due will include EMI, GST, interest amount of the EMI.

  • 18% of GST is applicable as per the regulations of Government of India on all charges. This includes the interest on the EMI, processing fees and pre-closure charges. In case there is any dispute with the loan application and procedure post disbursal, the GST will not be reversed to the borrower. 

  • Partial closure is not allowed on this type of loan.

  • One applicant can get up to 2 Insta Loans at any point of time based on eligibility.

  • The loan once approved cannot be cancelled at any point of time.

  • The loan amount should not be used for speculative purposes. The borrower cannot use the fund to invest in mutual funds and stock markets.

  • In case of default in repayment, the loan account services will be suspended, and the respective credit card will be terminated from usage.

Only after agreeing all these terms and conditions, you will be able to get HDFC Bank Insta Loan.

End Note

HDFC Bank’s Insta Loan can be of great help when you are unable to gather money elsewhere for your financial emergencies. The process is quick, and funds can be obtained in minutes. Also, go through the terms and conditions before applying for the loan whether they suit your convenient and repayment.

Additional Reading: How To Close Insta Loan In Hdfc