Personal Loan or Insta Jumbo HDFC Loan: Which is better?
Personal Loans have become a ready reckoner tool available in the times of financial crunch or when we feel an urgent need for cash. They are easy to apply, easy to get and easy to pay back. The online application processes have made life easier for everyone; you can simply apply online, upload the documents and get approved for Insta Loans without any delay. All this can be done without the need to physically visiting the bank even once.
However, if you are an existing HDFC Credit Card or Savings Bank Account customer, the chances are high that you are preapproved for other parallel products. HDFC Insta Jumbo Loan is one such financial instrument that helps you overcome your cash needs on an immediate basis.
Insta Jumbo Loan is a comparable product to HDFC Insta Loan (Personal Loan). The decision between the two is not an easy one. A lot of customers want to know which one to opt for.
HDFC Insta Jumbo Loan
HDFC Insta Jumbo Loan is a preapproved loan given to HDFC Credit Card holders. In other words, it is a limit assigned to the card member over and above her present credit limit. They get this amount as a lump sum transfer into their HDFC saving bank account. They can utilize it for any purpose and payback in the form of equal monthly installments.
The best part about this loan is that while you use this Jumbo Loan amount, your existing credit limit is not blocked; which means you can use the Credit Card as well as Insta Jumbo Loan amount simultaneously. The application and disbursal process is very simple. For, it is a pre-approved offer.
No documentation or verification is deemed necessary. You can simply apply online and once approved, the amount will be swiftly disbursed to your account.
Difference between HDFC Insta Loan & Insta Jumbo Loan:
Process of Application:
When you Apply for a Personal Loan, you first need to check the HDFC Personal Loan Eligibility and basis that, you provide the documents. Post that, your application will go through a verification & validation process and only when your application is approved. Although HDFC insta loan can be processed within a few hours, it may take up to 7 days to process the loan, depending on your profile and relationship with the bank.
However, in case of the Insta Jumbo Loan, you don’t need to go through the usual borrowing process. Since it is pre-approved, you just need to apply for it, and your loan amount will be transferred to you within a couple of hours. Hence you can expect the fastest loan disbursal.
The Insta Jumbo loan amount is an offer by the bank, and thus you do not have the flexibility to apply beyond the extended limit. While for a Personal Loan you can apply up to 25 lakh. The sanctioned limit varies according to your profile.
If you have a good credit rating, say 750 or above, you can avail a Personal Loan at an attractive interest rate. The HDFC Personal Loan Interest Rates start at 11.25% per annum; however, Insta Jumbo Loan is offered at 11.88% p.a to 15%.
GST on EMI:
In case of a Personal Loan, no extra GST is added to the EMI. It is added as a one-time charge in the beginning while taking the loan; however, in case of an HDFC Insta Jumbo loan, a GST is charged along with all the EMIs paid each month. This can substantially increase the EMI amount and the total payout towards the loan. As such, it would not hurt the total cost of the loan.
Only Credit Card Holders can apply for Insta Jumbo Loan:
Only existing HDFC Credit Card customers can apply for Insta Jumbo Loan. The card member needs to have a pre-approved offer to avail this product. It is not open to all loan scheme. So only a few users can apply for it. While, the HDFC Personal Loan can be availed by anyone and everyone, subject to eligibility; not necessarily an existing HDFC customer.
With your Insta Jumbo Loan, you will be assigned a new card number. A separate monthly statement for the loan account will be generated for the same billing cycle as your Credit Card. Auto Pay will be linked to your Savings Account and will start within a week of loan booking. Whereas, the personal loan is extended at a fixed rate of interest for a duration of 12 to 60 months.
Coming on to making a choice, it entirely depends on your requirements as in how much you want to borrow and for how long. If you need a term loan for more than a year, HDFC Personal Loan should be the preference, while for a quick emergency loan for a short period one may opt for the insta jumbo preapproved offer. You can also consider comparing both the products with your loan representative and make an informed decision.
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