How is HDFC Bank Personal Loan Interest Rate Based on My Income?

HDFC Personal Loan
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HDFC Bank offers you personal loans at an attractive interest rate of 10.25% per annum onwards. And you’re eligible for a lower interest rate when the income is high. How to compare income? You can compare whether your income is high or not by checking the HDFC Bank Personal Loan Eligibility Criteria. To check the same visit the official website of HDFC Bank. Continue reading this article below and know the relationship between HDFC Bank Personal Loan Interest Rate and income.

Minimum Income Requirement for an HDFC Bank Personal Loan

You need a minimum salary of INR 25,000 per month to get HDFC Bank Personal Loan. This is just the preliminary income requirement for HDFC Personal Loan. The eventual requirement will depend on the loan amount you apply for. The bank makes sure the EMI in proportion to your net monthly income (NMI) remains around 30-50%. Accordingly, it decides the loan amount for you. Whereas the interest rate of HDFC Personal Loan depends on the borrower’s income, age, residency, credit score, etc. So, where the risk of payment default is high, the lender protects the loaned money by increasing the interest rate.

How to Assure Regular Repayment with Minimum Income?

You can prove your repayment capacity by the following –

Credit Score

A three-digit number called credit score will show your repayment history. When the score is 750 and above, it means the applicant has a smooth repayment record. And when the score is below 700, it means there has been some irregularity in the repayment. You should know that even a single due credit card bill or EMI can decrease your credit score.

So, you should maintain your credit score by managing a regular repayment of borrowed money. If you’re a credit cardholder, regular repayment is not the only factor that builds your credit score, but credit card usage also determines your credit health. When someone uses a credit card more than 30% of the limit, the credit score decreases. This happens because it makes you credit greedy and shows you spend too much 

Co-borrower

You can increase your loan eligibility by borrowing the personal loan jointly. After this, the HDFC Bank Personal Loan Interest Rate will reduce. Because when there are two borrowers for a single loan amount, the repayment capacity is high and there will be fewer chances of payments defaulting. 

Who can be a co-borrower in HDFC Bank Personal Loan? Your spouse, family member, etc. can be a co-borrower for your loan. But the condition is that the co-borrower should have a regular flow of income.

What if You Don’t Get the Desired HDFC Bank Personal Loan Interest Rate?

In such a case, you can reduce the total interest using the HDFC Bank Personal Loan EMI Calculator. The tools allow the borrower to choose tenure and see the possible repayment. To use the calculator online, you need to insert the following details –

  • Loan amount
  • Interest rate
  • Tenure

Let’s check out the below example and see how one can reduce the interest payout.

Kishan is looking to borrow a loan of INR 6 Lakh for his home renovation project. And he visited the HDFC Bank website to check his eligibility criteria for a personal loan. Well, he gets the desired loan amount, but the interest rate is 15.00% per annum. Now as there is no way for Kishan to reduce the interest rate, he decides to manage repayment so the burden will be less. Using the HDFC Personal Loan EMI Calculator, Kishan checks the different interest payouts as shown below.

  • INR 2,56,437 for five years
  • INR 2,01,526 for four years
  • INR 1,48,771 for three years

From the above results, Kishan chooses the tenure of four years wherein the interest payout is less and EMI of INR 20,799 is affordable to him.

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