Why Should You Apply for HDB Personal Loan?

Why Should You Apply for HDB Personal Loan?

HDB Financial Services, an HDFC Group company, is one of the leading players providing a personal loan to meet your needs, which could be anything from travelling around to experiencing a grand wedding. The company keeps the loan offers as customized as possible to ensure maximum customers apply for them and fulfill their needs. You can thus evaluate HDB Personal Loan option before applying for the same.

HDB Personal Loan Interest Rate HDB personal loan interest rates are based on income, credit record and repayment potential of an applicant. So, if you are earning good, chances of a sound repayment potential are high. However, a poor credit profile caused due to defaults made on loans or credit cards availed in the past can play the spoilsport. Your credit history must be free of defaults so that the credit score reaches 750 and above. A lower score can either lead to a rejection or disbursal of loan at higher rates of interest.

Other Key Details HDB offers a maximum loan of up to â‚š20 lakhs for a period ranging from 12 to 60 months. The loan can be given without requiring a security or collateral, thus ensuring a hassle-free process. You need to pay a processing fee equating to 3% of the loan amount. And, if you want to foreclose the loan before it expires originally, it will then incur a cost at 4% of the outstanding loan balance plus applicable taxes.

Who is Eligible for HDB Personal Loan?

Both salaried and self-employed are eligible for a personal loan. Self-employed can be individuals or professionals The eligibility criteria for each of them can be seen below.

Salaried It includes employees of both public and private sector enterprises. ● The minimum age of the applicant must not less than 21 years ● The maximum age of the applicant must not exceed 60 years at the proposed time of loan maturity and 65 years for government employees subject to certain terms and conditions ● A minimum 1-year service and 1-month salary credit is sought ● The minimum net monthly income for those residing in metro locations and other places is ₹20,000 and ₹15,000, respectively

Self-employed Individuals These include sole proprietors as well as partners and managing directors of manufacturing, trading or service units. ● The minimum age of the applicant must be at least 22 years ● The maximum age of the applicant at the proposed loan maturity must not exceed 65 years ● A minimum of 4 years of business experience including a minimum of 2 years in the same line of business is required ● The minimum annual income should not be below ₹1 lakh and ₹75,000 in metro and non-metro locations, respectively

Self-employed Professionals This segment constitutes self-employed doctors, chartered accountants, company secretaries and architects. ● The minimum age of the applicant should be 22 years ● The maximum age of the applicant must not be more than 65 years at the time of proposed loan maturity ● A minimum of 3 years of business experience is sought The minimum annual income should not be below ₹1 lakh and ₹75,000 in metro and non-metro locations, respectively