HDFC Bank Personal Loan review

HDFC Bank offers personal loans upto Rs.15,00,000 for any requirement that you may have. You can choose a tenure between 12 months and 60 months for paying back your personal loan. No security or collateral is required to be given to HDFC Bank for the personal loan. You do not need any guarantors either.

You can expect to get a better deal from HDFC Bank in a personal loan if you have an existing relationship with them. If you have a bank account with them or an existing auto loan which you have been repaying promptly, you can expect a savings in processing fees and interest costs.

You can avail of a loan from Rs 50,000/- to Rs 15,00,000/-  with the amount varying with your income and repayment ability. HDFC Bank also offers a 'Credit Shield'. This is to protect the family of the person taking the loan from the liability of the loan should something happen to the loanee. There is a 'payment protection insurance' which insures the principal amount of the loan upto the maximum of the loan amount This is the total loan amount outstanding, excluding any arrears in payment or interest. if the person who has taken the loan dies, this amount gets paid to HDFC Bank relieving the family of any liability assuming there is nothing 'past due'.

You can also get a personal accident coverof upto Rs.2 lakhs from HDFC bank at a nominal premium from HDFC Bank. HDFC Bank provides personal loans to salaried individuals, self employed professionals, self employed individuals
and self employed people running private companies and partnership firms.

Salaried individuals who can get a personal loan from HDFC Bank include salaried doctors, CAs, employees of select public and private limited companies, government sector employees including public sector undertakings and central, state and local bodies The minimum age of the applicant needs to be 21 years. The maximum age of the applicant at the time of maturity of the loan needs to be 60 years. Salaried individuals need to have been employed for a minimum of 2 years and 1 year in the current organization. The minimum net monthly income needs to be Rs. 8,000 per month. (Rs.10,000 in some cities).

Documents required include:

• Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)
  Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate)
• Bank Statements (latest 3 months bank statement / 6 months bank passbook)
• Latest salary slip or current dated salary certificate with latest Form 16

Self employed professionals who can get a loan include self-employed doctors, chartered accountants, engineers, MBA consultants, architects, company secretaries. The minimum age of the applicant needs to be 25 years while the maximum age of the applicant at loan maturity has to be 65 years.

Documents required include:

• Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence).
  Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate).
• Bank Statements(latest 6 months bank statement /passbook)
• Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
• Qualification proof of the highest professional degree

Self employed professionals need to have been in business for between 4 and 7 years, depending on the profession with an annual income of atleast Rs.1 lakh can get an HDFC Bank personal loan.

Documents required to be given to HDFC Bank for the personal loan include:

• Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)
  Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate)
• Bank Statements(latest 6 months bank statement /passbook)
• Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Proof of continuation (Trade licence /Establishment /Sales Tax certificate)
• Other Mandatory Documents(Sole Prop. Decl. Or Cert. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)

Self employed individuals including self-employed - sole proprietors, partners & directors in the business of manufacturing, trading or services can also get an HDFC Bank personal loan. The minimum age of the applicant needs to be 21 years maximum age of the applicant at the time of maturity of the loan needs to be 65 years. The applicant needs to have atleast 5 years of continuous business experience with a minimum annual income of Rs. 1 lakh per annum.

Private companies and Partnership Firms including those in the business of manufacturing, trading or services can also get an HDFC Bank personal loan. The entity needs to have been operational in the current business for atleast 3 years and five years overall. The business should have been making profits for the last two years. The minimum annual income needs to be Rs.2 lakhs per annum.

Documents required for the HDFC Bank personal loan include:

• Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate)
• Bank Statements(latest 6 months bank statement /passbook)
• Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
• Proof of continuation (Trade licence /Establishment /Sales Tax certificate)
• Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original).)

HDFC Bank Personal loan charges and fees

HDFC Bank charges upto a maximum 2% of the loan amount as the loan processing fee. If you choose to prepay the loan, there is a prepayment fee of 4% of the principal amount. The HDFC personal loan can be prepaid only six months after the date it is taken. If your cheque bounces you'll have to pay Rs.450 as a penalty. If your EMI comes in late you'll have to pay interest @ 24 % p.a on amount outstanding from date of default.