HDFC Bank Launches Personal Loan with Step up EMI Repayment Option

HDFC Bank Launches Personal Loan with Step up EMI Repayment Option

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:

Product

HDFC Personal Loan with Step UP EMIs

Quantum

Minimum of Rs 5 Lakhs

Tenor

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 Required

Minimal 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.

STEP EMI CALCULATION:

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 IRR

11.25%

Step-up EMI Calculation

EMI From

% Increase in EMI

Step up Personal Loan EMI (in Rs.)

Regular Personal Loan EMI (Without Step UP option) (in Rs.)

1-12 Months

0

9147

10934

13-24 Months

10%

10062

10934

25-36 Months

10%

11068

10934

37-48 Months

10%

12175

10934

49-60 Months

10%

13392

10934

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 IRR

11.25%

Step-up EMI Calculation

Year wise Tenor

% Increase in EMI

Step up Personal Loan EMI (in Rs.)

Regular Personal Loan EMI (Without Step UP option) (in Rs.)

1-12 months

0

18294

21867

13-24 months

10%

20124

21867

25-36 months

10%

22136

21867

37-48 months

10%

24350

21867

49-60 months

10%

26785

21867

 

Also read :Rs 3 Lakh Crore MSME Loan: Know Interest Rates, Eligibility & FAQs

 

Here in, you will pay Rs 42876 lesser in first year and Rs. 19716 lesser in second year. Thus, you get enough cash in hand during the present cash crunch.

 

Contactless Emergency Loan with instant approval

 

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Category: Personal Loan