HDFC Bank Launches Personal Loan with Step up EMI Repayment Option

Updated on: 17 Jan 2024 // 3 min read // Personal Loans
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India’s largest private sector bank HDFC Bank has launched a Personal Loan with a Step-Up EMI repayment feature for its existing customers. The new Personal Loan offering is offered for existing bank customers looking out for temporary cash flow relief to meet the financial disruptions caused due to COVID 19 pandemic and subsequent lockdowns in the country.

Owing to existing uncertainties in the economy, the HDFC Step UP Personal Loan is an ideal product for customers as they can avail of unsecured funding at low EMIs amid the present cash crunch. The customers can borrow higher amounts at lower EMIs, particular in the initial phase of the loan.

What is Step Up EMI?

Step Up EMI repayment structure is the repayment schedule wherein EMIs are low in the beginning of the tenure. The EMIs grow regularly at intervals, as mentioned in the loan contract.

The HDFC Step-up EMI repayment feature, will allow customers to service a lower EMI for 12 months. The EMIs will increase by 10% after completing a year. Thus the amount of instalment will increase with the tenor of the loan.

Why Opt for Step Up EMIs?

The step by step & moderate increase in EMIs will help you manage your current cash flows efficiently without stressing out your finances. You can borrow more at low cost EMIs for initial years.

Amidst liquidity crunch in the Covid Times, a Personal Loan from HDFC Bank will not stress your pockets.

HDFC Personal Loan with Step Up EMI- At Glance:

ProductHDFC Personal Loan with Step UP EMIs
QuantumMinimum of Rs 5 Lakhs

Flexible. Choose as per requirement.

Tenure Options:

  1. 24 Months or 2 Years
  2. 36 Months or 3 Years
  3. 48 Months or 4 Years
  4. 60 Months or 5 Years
Interest Rate

Step up rate of interest

10% increase in EMIs after 12 months

Eligibility Criteria
  1. Existing HDFC Customers
  2. Should be employed with Super CAT A, CAT A & CAT GA
  3. Minimum Income: Rs 50000 per month
  4. Minimum Age: 35 Years
Documents RequiredMinimal documentation required as this is open to eligible HDFC customers only

You can apply for HDFC Personal Loan Online. The bank also offers Step UP Car Loan and Step Up Home Loan facility.


Now let’s understand how Step-Up Personal Loan EMIs would affect your repayment schedule. We have considered two examples for Rs 5 Lakhs & Rs 10 Lakhs Loan requirement for 5 years each.

Example: 1

Loan Amount (Rs)5 Lakhs
Tenure (Months)60
Starting EMI (Rs)9147
Actual IRR11.25%

Step-up EMI Calculation

EMI From% Increase in EMIStep up Personal Loan EMI (in Rs.)Regular Personal Loan EMI (Without Step UP option) (in Rs.)
1-12 Months0914710934
13-24 Months10%1006210934
25-36 Months10%1106810934
37-48 Months10%1217510934
49-60 Months10%1339210934

Thus you will pay a total of Rs 21444 lesser in the first year of Step Up loan. The EMI from third year will begin to rise. It is expected that the current financial challenges may impact business for next 6-12 months. Thus you will get enough cash flow ease with the step up EMIs.

Example: 2

Loan Amount (Rs)Rs 10 Lakhs
Tenure (Months)60
Starting EMI (Rs)18294
Actual IRR11.25%

Step-up EMI Calculation

Year wise Tenor% Increase in EMIStep up Personal Loan EMI (in Rs.)Regular Personal Loan EMI (Without Step UP option) (in Rs.)
1-12 months01829421867
13-24 months10%2012421867
25-36 months10%2213621867
37-48 months10%2435021867
49-60 months10%2678521867