A personal loan can help you achieve a variety of goals and ambitions in your life. These loans can be utilized for a range of things, like financing your ideal wedding or a foreign trip, buying durable, or consolidating credit card debt. There are no limitations on how you can use the funds. Because this is an unsecured loan, you are not required to provide any security, your bank imposes unique fees and charges. The personal loan interest rate on an HDFC personal loan ranges from 10.50 percent to 21 percent per annum. You will be charged the following costs if you take out a personal loan. Hence, a HDFC Personal Loan apply from HDFC bank is simple and easy to obtain.
Fees and Charges for HDFC Personal Loans
- Processing fees- The bank must pay some administrative fees in order to process and sanction your loan. HDFC Loan processing fees are capped at 2.5 percent of the loan amount, with a maximum fee of Rs.25,000. You have the option of paying the fee up front or having it taken from the loan amount when it is disbursed.
- Banks allow you to pay back your loan in small amounts via equated monthly installments, or EMIs. If you default on your EMIs, you will be penalized. As a borrower, it is your responsibility to ensure that you have the funds to pay your EMIs on time.
- A small fee in the form of GST tax must be paid if the customer demands any additional service during the loan approval or repayment period.
- Duplicate statement fees- You can request a duplicate statement of your payment schedule from your bank at any time if you have lost track of the balance of your outstanding loan amount. Your bank can provide you with these details for a small fee.
- Charges for prepayment/foreclosure- If you pay off your loan early or foreclose, banks get their money back from the interest you pay on it. If you pay off your debt before the agreed-upon term, your bank may lose money as a result of your early repayment. These fees have been discussed.
The pre-closure charge is equal to 4% of the outstanding principal in the second year (plus applicable tax). 3 percent (plus applicable tax) in the third year, then 2.5 percent (plus applicable tax) the following year. Part-payments are only allowed after 12 months. Part payments made over the period of 13 to 24 months are subject to a 4% fee. A 3% penalty is applied to payments made over a period of 25 to 36 months. After 36 months, you will be taxed 2% of your earnings.
Only two part-payments and one annual payment are allowed during the loan duration. The total cannot be more than 25% of the outstanding principle.
Other Fees for an HDFC Personal Loan
- Overdue EMI interest will be charged at a rate of 2% per month on the outstanding principal or EMI.
- The legislation of the state in which the applicant resides governs stamp duty and other regulatory fees.
- The cost of exchanging checks is Rs.500.
- The amortization schedule has a fee of Rs.200.
- On the first return in a month, the cheque bounce charges are Rs.450 + taxes per instance, Rs.500 + taxes per instance on the second return in a month, and Rs.550 + taxes per instance on the third return and thereafter.
- Actual charges are those incurred as a result of an incident or a legal action.
In general, HDFC instant personal loans are a decent investment. A high CIBIL score, as well as a set of minimal eligibility requirements and papers, are necessary. You will be offered the finest HDFC Personal Loan Interest Rate if your CIBIL score is good. After all documents have been authenticated, the loan processing period for non-HDFC customers is approximately 4 hours. HDFC customers, on the other hand, enjoy a loan processing time of as short as 4 seconds because they are presented with pre-approved options. Furthermore, HDFC personal loans offer flexible repayment terms as well as adjustable and competitive interest rates.