Last Updated on February 20, 2023 by admin
Personal loan interest rates are comparatively higher than that of secured loans and the reason for this is their collateral-free nature. As there is no asset to cease, the risk of non-payment is high. So, find a lender whose personal loan interest rates are affordable. Well, HDFC is one such lender that can provide you with this benefit. HDFC Personal Loan Rate Of Interest will begin from 10.25% per annum and is much lower compared to other offers in the market. So, read this page further and know how to manage the repayment of the interest.
What is the Highest HDFC Personal Loan Rate Of Interest?
The bank will charge an interest rate of 21.00% per annum maximum. This rate will apply to your loan amount in the following cases –
Poor Credit Score
You might not be aware of this, but your due EMIs or credit card bills can lead to a poor credit score which later can impact your loan application. In this case, HDFC Personal Loan Rate Of Interest may firm up and make it difficult for you to repay the loan EMIs comfortably. So, what can you do to avoid this? First, check your credit score before applying for a loan. You can easily check the score online without any hassle. Many online credit bureaus provide free credit scores.
Now, if your score is 750 or above, it means that you can easily get yourself a low HDFC Personal Loan Rate of Interest. Whereas if the score is 300 or above, there is not much scope for a low-interest rate. Check your credit report and find what has made your credit score so poor.
Find the reason for low credit strength, improve the same and get a decent score. When you have a good score, apply for the HDFC Personal Loan to avoid a bad rate of interest.
Low Loan Amount
When you apply for a loan amount, say INR 50,000, there is not much interest the bank can collect on the same, so the rate of interest may seem high. But the actual payout is way less than what you expect. Check out the example below to understand it better.
Sonam needs INR 50,000 for her children’s school admission. And HDFC Bank offers seem the right choice for her. But when she applied for the loan, the interest rate came at around 19.00% per annum. As per the calculations of HDFC Personal Loan EMI Calculator, the total interest payout of Sonam is INR 5,294 for 12 months.
Maybe her credit score is not that great. As a result, HDFC Personal Loan Interest rate comes high for Sonam.
Tenure Chosen by the Borrower
HDFC Bank gives you the flexibility to repay the loan over 12 to 60 months. The longer the tenure, the higher the interest payout. So, if you know your HDFC Personal Loan Rate Of Interest, check the total payout.
There are tools like EMI calculators which you can find the same without any trouble. All you need to do is visit the bank’s website and go to the HDFC Personal Loan page. When you’re on the page, you can see the calculator there. Insert your loan details such as loan amount, interest rate and tenure. After that, click on the ‘calculate’ button.
When you do as stated above, the EMI amount will be displayed on your screen. Plus, a graphical representation of your loan repayment helps you know how much interest you’ll be paying during the tenure.
Note – A shorter tenure can help you reduce the interest payout of HDFC personal loans, but the EMIs are quite high. So, if you can afford the same, only then select such a tenure.