In recent years, Personal Loans have come as a preferred choice of credit among borrowers of all age groups. Indeed a large number of customers are now availing Personal Loans to take care of certain important lifestyle-related expenses besides the emergency cash needs.
Various benefits of Personal Loans are:
To cater to the increasing demand, many lenders are now offering Personal Loans at friendly terms and conditions. Moreover, for the sake of best customer experience, these Financial institutions allow customers to Apply for a Personal Loan through online as well as offline channels.
Out of the multiple financial institutions offering Personal Loan in the Indian market, Bajaj Finserv and HDFC Bank are two of the popular options. If you are unsure as to which is the better option for you, here is a detailed comparative analysis for your convenience.
|Compare Bajaj Finserv & HDFC Bank Personal Loan|
|Bajaj Finserv||HDFC Bank|
|Maximum Amount||Rs. 25 Lakhs||Rs. 40 Lakhs|
|Repayment Tenor||60 months||60 months|
|Processing Fee||Up to 4.13% of the loan amount plus GST||Up to 2.50% of the loan amount plus GST|
|Foreclosure Charges||4% of the outstanding principal amount plus taxes||2-4% of the outstanding principal amount plus taxes|
|Monthly Income Requirement||Minimum monthly income of Rs. 35,000||Min. Rs. 20,000 for metro centres and Rs. 15,000 for other centres|
Bajaj Finserv is a leading Non-Banking Financial Corporation (NBFC) operating in the Indian market. The company offers a wide range of financial products for its customers, out of which Bajaj Finserv Personal Loan is a popular option. Bajaj Finserv offers unsecured Personal Loans with approvals and disbursals within 24 hours. Existing Bajaj Finserv customers can access exciting pre-approved Personal Loan offers with instant disbursals. Moreover, customers get access to the Bajaj Finserv Experia Portal, from where they can check the various details pertaining to their loan account.
HDFC Bank is a leading private sector bank in India, offering a wide range of financial products for its customers. One of the most popular products offered by the bank is undoubtedly the HDFC Bank Personal Loan. Attractive interest rates, flexible repayment tenor, high-value loans, and quick approvals make it an excellent option in situations of financial emergency.
Let’s have a look at the detailed comparison of these two offerings across various essential parameters:
The maximum amount available as a Personal Loan from Bajaj Finserv is Rs. 25 Lakh while the maximum amount available from HDFC Bank as a Personal Loan is Rs. 40 Lakh. If your need is for a high-value loan, then HDFC Bank seems to be a better option as it allows you to borrow more money for your financial requirements.
Though both these financial institutions offer Personal Loans on floating interest rate basis only, their interest rates vary significantly. While Bajaj Finserv Personal Loan Interest Rate starts from 12.99% per annum onwards, HDFC Bank offers Personal Loans with interest rates starting from 10.75% per annum. As Personal Loan is a long-term commitment, lower interest rates are always better as they not only reduce your total interest cost but also lower your EMIs.
When it comes to the maximum repayment tenor available to customers, both these financial institutions are tied. They both offer repayment tenor ranging between 12 months to 60 months to their customers, allowing the customers to opt for an EMI amount as per their financial comfort.
Processing fee is a one-time charge levied by financial institutions while sanctioning a credit facility to their customers. Bajaj Finserv levies a processing fee of up to 4.13% of the loan amount in comparison to 2.50% levied by HDFC Bank (subject to a minimum of Rs. 2,999 and a maximum of Rs. 25,000). So, here HDFC Bank scores over Bajaj Finserv on account of a lower processing fee.
Both these lenders do not allow foreclosure of the Personal Loan account for the first 12 months since the disbursal of the loan. Bajaj Finserv levies a foreclosure charge of 4% plus taxes. HDFC Bank levies varied foreclosure charges depending on the repayment tenor remaining, i.e. when the loan account is – between 13-24 months old, it charges 4%; between 25-36 months old, it charges 3%; and more than 36 months old, it charges 2% of the principal amount as foreclosure charges.
It is an important criterion that allows the lenders to assess the repayment capacity of the borrower. Bajaj Finserv requires the borrowers to have a minimum monthly income of Rs. 35,000 to avail this facility. HDFC Bank offers Personal Loans to customers having a minimum monthly income of Rs. 20,000 in metro cities and Rs. 15,000 in other cities. Thus, availing an HDFC Bank Personal Loan is easier for the customers with lower monthly income.
From the above analysis, it is evident that HDFC Bank scores over Bajaj Finserv in most aspects when it comes to Personal Loans. Banks are regulated by RBI and have more mature and organised products as compared to NBFCs. Thus, the eligibility criteria of Bajaj Finserv are more flexible as compared to HDFC Bank. If you have a lower credit score, say between 650-700, it would be more hassle-free to apply through Bajaj Finserv compared to HDFC. Thus, based on your requirements and financial health, you must choose your lender.
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