HDFC Personal Loan Interest Rate
A personal loan is an unsecured loan, meaning you don’t have to pledge collateral in order to avail the loan. The main advantage of a personal loan is that the end use of the loan could be anything. It could range from funding your child’s higher education or wedding or even your dream vacation, to a medical emergency, or for any business-related expenses. It could be used as an excellent debt consolidation tool since its interest rates are generally lower than credit card interest rates.
However, there are some downsides to taking a personal loan as well. Personal loans are among the most expensive loans on the market. They come with the highest interest rates since they are 'unsecured', i.e. they are given without any collateral. They have a high interest rate because the lender has no safeguard in case of default.
The interest rate on a personal loan could range from as low as 12.99% to as high as 32%. It is influenced by a variety of factors, like your credit history including your repayment track record, credit score, net annual income, debt-to-income ratio, employment stability etc.
What Factors Affect the Interest Rate on HDFC Personal Loans?
There are a variety of factors that affect the interest rate on any personal loan. Following are some of the important factors:
Your credit score and history: Lenders look into your borrowing history in order to evaluate your repayment ability. Since a personal loan is an unsecured loan, lenders are specific about knowing about your past credit behavior, like your repayment track.
Generally, the higher your credit score, the better the interest rate will be. If you have a high credit score, then you might be able to negotiate a lower interest rate with your lender.
Your loan amount as compared to your annual income: This is an important deciding factor when it comes to bagging the best interest rates. If your loan amount is a small percentage of your annual income, then your interest rate might be lower. On the other hand, if your loan amount is a high percentage of your annual income, then lenders might not be confident about your repayment capacity and might sanction the loan amount at high interest rates.
HDFC Personal Loan Interest Rate
Currently, HDFC Personal loan interest rates range from 15.75% to 20% (p.a.) or more depending on your credit history, repayment ability, etc.
Apply for HDFC Personal Loan
There are several ways of applying for an HDFC loan:
You can apply directly online at the HDFC website
You can go in person to your nearest branch with the required documentation
You can contact the customer care department of HDFC
Need help with advice on eligibility and on which loan offer suits you the best? If you want to apply for a personal loan with the lowest interest rates as applicable to your unique credit profile, CreditMantri can guide you through the entire application process and match you with the loan offer best suited to your credit needs.