Applying for HDFC Personal Loan in Metro City like Chennai or Mumbai?

Updated on: 12 Dec 2023 // 4 min read // Personal Loans
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Mumbai and Chennai are amongst the two of the major metropolitan cities in India. Both these cities are considered as the powerhouses of the Indian economy. Many Multi-National Corporations, as well as big Indian Corporate houses, have their offices and manufacturing facilities in these cities. As a result, a large number of people from all over India move to Mumbai and Chennai to progress their careers. In addition to enjoying excellent infrastructure, both these cities promise a good quality of life with all essential amenities and luxuries, readily available.

While the metropolitan cities offer a higher living standard, so is the cost of living. Thus, it is not uncommon for people living in these cities, facing a shortage of funds occasionally. But as qualified and experienced professionals, it is comparatively more hassle-free to opt for a Personal Loan in Mumbai than availing the same in Tier III or Tier IV city. A person living in Chennai does not need to use his/her savings to tide over the tough times. Instead, s/he can apply for a personal loan in Chennai through a bank or NBFC of their choice.

Personal Loans in a Metropolitan City

As multiple financial institutions have a strong presence in urban cities like Mumbai and Chennai, the availability of a Personal Loan is relatively easier. Out of the multiple choices available, HDFC Personal Loan is one of the popular options with the people. The major reason behind this trend is the numerous advantages that HDFC has over other lenders in the market.

Let’s review HDFC personal loan products below:

1. Eligibility:

Whether you are applying for a personal loan in Mumbai or Chennai with HDFC Bank, you must meet the following eligibility criteria:

  • Your CIBIL score should be 700+
  • Applicants must be more than 21 years or less than 60 years old.
  • Applicants must have a stable job. The minimum work experience required is two years with at least one year with the present employer.
  • Applicants employed with a public sector undertaking or a private limited company are eligible to apply.
  • Minimum Monthly Income requirement for residents of metro cities like Chennai and Mumbai is Rs. 20,000/- per month.
  • The facility of  is also available with HDFC bank.
  • If you are an existing HDFC Bank customer, you can log-in to your HDFC Net Banking to check your pre-approved personal loan offers.

2. Interest Rates:

The interest rate you have to serve is an important factor in determining the suitability of the Personal Loan. HDFC Bank offers one of the lowest interest rates in the market.

  • Interest rates for HDFC Personal Loan start from as low as 10.75% per annum and can go up to 21.30%, as per the latest data from the bank. The maximum and minimum APR (annual percentage rate are 11% and 30% respectively)
  • Average interest rate is 12.90% per annum while the average APR is 13.14%
  • Late interest rate penalty is 2% per month on the EMI overdue.
  • The interest rate on personal loan balance transfer starts from 11.49% per annum.
  • HDFC Bank only offers floating interest rates against Personal Loan.

3. Quantum of Loan:

HDFC Bank offers unsecured Personal Loans starting from Rs. 50,000, with the maximum amount offer being Rs. 40 Lakhs. The maximum amount available is dependant, on the credit score and risk profile of the borrower besides the risk assessment policy of the bank. You must apply only for that much amount which you require as it comes with an interest cost, and any used amount in your account will only add more burden on your finances.

4. Repayment tenor and EMI:

The repayment tenor for HDFC Bank starts from 12 months with the maximum repayment tenor being 60 months. Longer is your repayment tenor, lower would be your EMI, and higher would be your interest cost and vice-versa. The EMIs for HDFC Personal Loan starts from as low as Rs. 2187 per Lakh. In order to ascertain your exact EMI, you can use the HDFC Bank EMI Calculator which is available on the website of the bank.

5. Financial Charges:

Borrowers need to bear the following charges for availing a personal loan from HDFC Bank.

  • Processing charges up to 2.50% with Rs. 2,999/- being the minimum and Rs. 25,000/- being the maximum amount for salaried individuals.
  • Pre-payment charges starting from 2% and going up to 4%; depending on the repayment tenor remaining.
  • 550/- cheque bounce charges.
  • Flat processing fees of Rs. 3,999/- for Personal Loan Balance Transfer customers 

6. Documentation:

Following are the documents required by HDFC Bank for processing of your Personal Loan application:

  • Valid Identity Proof (Aadhar/ Voter ID, Driving License, Passport)
  • Valid Address Proof (Aadhar/ Voter ID, Driving License, Passport)
  • Last 6 months’ bank statement of Savings or Salary Account
  • Latest Salary Slips or Form 16
  • Additional documents, if required will be informed by the bank

7. Application Process:

HDFC Bank allows its customers to apply for a Personal Loan through online as well as offline channels. It follows a minimal documentation process and approves the applications within four hours. Moreover, customers can get the loan amount credited in their Savings Account within one working day.

Offering you the significant financial flexibility to meet your liabilities in a timely manner, HDFC Personal Loans are an excellent option to tide over times of financial crisis without dipping into your savings.