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When financial needs arise unexpectedly, having access to quick and convenient loans can be a lifesaver. HDFC Bank, one of India's leading banks, offers its customers the provision of loans on their credit cards. This financial tool, known as a 'Loan on HDFC Credit Card,' allows cardholders to tap into their pre-approved loan against their credit limit. Whether it's an urgent inflow of cash or planned expenses, this offering comes with attractive interest rates and a variety of tenure options.
Types of HDFC Credit Card Loan
HDFC Bank offers two main types of credit card loan, each tailored to different financial needs:
HDFC Credit Card Insta Loan
The Instant Loan is a pre-approved loan that cardholders can avail of within their allocated credit limit. It offers quick access to funds without needing to apply for a separate loan.- Loan amount: Up to the available credit limit on the borrower’s HDFC Bank Credit card.
- Tenure: 1-5 years.
HDFC Credit Card Jumbo Loan
The Instant Jumbo Loan is a unique offering by HDFC Bank, allowing cardholders to borrow above and beyond their credit card's assigned limit. Importantly, this loan amount does not impact the existing credit card limit.- Loan amount: Above the existing credit limit of the borrower's HDFC Bank Credit card. This does not impact the existing credit limit.
- Tenure: 1-5 years.
Features of a Loan on HDFC Credit Card
- Blocked loan amount: The loan amount under the Instant Loan is blocked against the credit limit on the card, ensuring easy repayment.
- Pre-approval: No cumbersome documentation is required for loan applications, as the loan is pre-approved.
- Attractive interest rates: HDFC Bank offers competitive interest rates, making the loan an affordable borrowing option.
- Flexible tenure: Borrowers have the flexibility to choose a repayment tenure ranging from 12 months to 4 years.
- Instant disbursal: Once approved, the loan amount is instantly credited to the borrower's savings account.
Eligibility Criteria for Loan on HDFC Credit Card
The primary eligibility criteria for obtaining a loan on your HDFC Credit Card include maintaining a good credit score, making timely payments, and having a favorable transaction history.HDFC Credit Card Insta Loan
- Eligibility is determined by HDFC based on internal guidelines.
- Select HDFC Bank Credit Card holders are eligible for this loan.
HDFC Credit Card Jumbo Loan
- Eligibility is determined by HDFC based on internal guidelines.
- Credit score verification is conducted, and customers with a good credit score are considered for further processing.
You can check your eligibility through the following methods:
Netbanking
- Login to HDFC netbanking account.
- Click on 'Cards'.
- Select the option for 'Credit Cards'.
- Click on 'Transact'.
- Choose 'Insta Loan'.
Phone Banking
You can also contact HDFC credit card customer care through phone banking to inquire about your eligibility for a credit card loan.Fees and Charges
It's essential to be aware of the associated costs when availing HDFC Instant Loan on Credit Card:
Processing fees: Max of Rs 999, excluding GST.
Preclosure charges: 3% of the principal outstanding, plus GST. Note that preclosure is eligible only six months after the loan disbursement.
How to Apply for an HDFC Credit Card Loan?
HDFC Bank credit cardholders can easily apply for this loan through various channels:
Net Banking
- Existing customers can log in to their HDFC net banking portal.
- Visit the 'Card' section.
- Click on 'Credit Card.'
- Select 'Transact' to access the 'Insta Loan' option and initiate the loan application.
Phone Banking
Existing HDFC Bank Credit Card holders can call the 24*7 phone banking facility provided by the lender to apply for its credit card loan facility.Digital Banking
Customers can also visit the bank's website to avail the HDFC Credit Card Loan facility in just three clicks. By entering their registered mobile number and the last four digits of their credit card, they can check their eligibility.For those who prefer a more traditional approach, existing HDFC Bank cardholders can receive the loan through a demand draft, with delivery typically taking up to seven working days.
Repayment of Loan on HDFC Credit Card
- Once the loan request is approved, the loan amount, interest rate, and tenure details are conveyed through a call or SMS.
- Repayment occurs through Equated Monthly Installments (EMI) along with the specified interest, with options for payment mode, including auto-debit from the borrower's account or cheque payment.
FAQs on Loan on HDFC Credit Card:
1. Are there any processing fees for HDFC Credit Card loans?
Yes, a processing fee of 1% of the loan amount is levied.
2. What is an HDFC Credit Card Loan?
An HDFC Credit Card Loan is a form of loan provided to HDFC Bank credit cardholders. It allows them to avail themselves of a loan amount, which is added to their credit card limit and can be repaid in easy installments.
3. What is the interest rate on HDFC Credit Card Loan?
The interest rate on HDFC Credit Card Loan can vary depending on the type of loan and your creditworthiness. Typically, it ranges from 12% to 24% per annum.
4. What is the maximum loan amount I can get with an HDFC Credit Card Loan?
The maximum loan amount you can get with an HDFC Credit Card Loan depends on your credit limit and eligibility. It is usually a percentage of your credit card limit.
5. What are the repayment options for HDFC Credit Card Loan?
HDFC Credit Card Loans can be repaid in easy monthly installments (EMIs). You can choose the tenure and EMI amount that suits your financial situation.
6. Is there a processing fee for HDFC Credit Card Loan?
Yes, there is usually a processing fee associated with HDFC Credit Card Loan. The fee may vary depending on the type and amount of the loan.
7. Can I prepay my HDFC Credit Card Loan?
Yes, you can prepay your HDFC Credit Card Loan before the end of the loan tenure. However, prepayment charges might be levied, so it's essential to check the terms and conditions.
8. How long does it take for HDFC Bank to approve a Loan on Credit Card application?
HDFC Bank typically processes Loan on Credit Card applications quickly. You may receive approval within a few hours to a couple of working days, depending on the verification process.