Being a leading private sector bank in India, HDFC is always offering innovative and useful financial products for its customers. Talking about its retail consumer segment, the product portfolio is quite impressive with Personal Loans, Credit Cards, Saving Accounts, Car Loan, Insurance Policies, Investment Schemes amongst several others.
To meet to the financial requirements of its varied customer-base in an efficient manner, the bank offers various types of retail loans. HDFC Insta Jumbo Loan and HDFC Personal Loan are the two popular options. Now, which of these two is a better fit for your requirements? Let’s analyse their features in detail for a better understanding.
About HDFC Insta Jumbo Loan
The demand for a Loan Against Credit Cards is on a steady rise over the last few years. To cater to this demand from the customers, HDFC bank has come up with an innovative offering, i.e., HDFC Insta Jumbo Loan. It is essentially a pre-approved Personal Loan which is available to HDFC Bank Credit Cardholders only. There is no need to fill an application form for availing of this facility. Customers need to log-on to their internet banking or mobile app and avail the loan in a matter of minutes.
HDFC Insta Jumbo loan is offered over and above the existing credit limit of the cardholder. The money is transferred directly to the HDFC Savings Bank Account of the customer and can be used as and when required. The repayments are to be made in the form of EMIs, which will be directly debited from the HDFC Savings Account in which the money was transferred.
About HDFC Personal Loan
HDFC Bank offers unsecured Personal Loans up to Rs. 40 Lakhs for existing as well as new customers. This facility is presently available only to salaried individuals who are employed with reputed public limited, private limited, or a government department. The application process for a Personal Loan is very straightforward and requires only minimal documentation. Usually, it only takes a few working days for the entire process to be completed. The repayments for HDFC Personal Loan are to be made through EMIs as per the signed loan agreement. The customer can use the money for any financial requirement. Customers with a Personal Loan from another financial institution can opt for a balance transfer to HDFC bank at lower interest rates.
HDFC Personal Loan vs. HDFC Instant Jumbo Loan
|S. No.||Parameter||HDFC Personal Loan||HDFC Instant Jumbo Loan|
|1||Application Process||Website, mobile app or branch banking||Pre-approved facility for existing HDFC Credit Cardholders only|
|2||Processing and Disbursal||Can take up to 7 working days||Within a few minutes|
|3||Maximum Amount available||Up to Rs. 40 Lakhs||Depends on borrower’s profile|
|4||Repayment Tenor||Between 12 to 60 months||Between 12 to 60 months|
|5||Interest Rates||10.99% per annum onwards||1.25% per month|
|6||Processing Fee||Up to 2.5% of the loan amount||Rs. 999 plus GST|
|7||Foreclosure charges||2-4% depending on the repayment tenor remaining||3% of the outstanding amount plus GST|
|8||Eligibility||Salaried individuals only||HDFC Account holders, i.e., salaried or self-employed|
|9||Part-prepayment||Available on payment of pre-payment charges||Option of part-prepayment is not available|
|10||Balance Transfer||Facility available for other financial institution’s customers||Facility not available|
- Application Process: The application process must be as simple as possible for the convenience of the customers. You can apply for an HDFC Personal Loan through the bank’s website, mobile app, or phone banking. In case of Insta Jumbo Loan, there is no need to submit an application as it is a pre-approved facility available for select HDFC Credit Cardholders only.
- Processing and disbursal: While HDFC bank offers in-principal approval for a Personal Loan within 10 minutes, it can take up to 7 days for the disbursal of the amount. Though, in the case of HDFC Insta Jumbo Loan, it only takes a few minutes for the amount to be transferred to the HDFC Savings Bank Account of the borrower. For, it is a form of an Instant Loan on your HDFC Credit Card. The customer only needs to agree to the terms and conditions to avail this loan.
- Maximum amount: The maximum amount available as HDFC Personal Loan can go up to Rs. 40 Lakhs depending on the borrower’s profile. In the case of HDFC Insta Jumbo Loan, the maximum amount available is directly linked to the bank’s offer as per your Credit Score and card usage pattern.
- Repayment tenor: Both these facilities offer a maximum repayment tenor of up to 60 months.
- Interest rate: Interest rates for HDFC Personal Loan start from as low as 10.99% per annum, which is amongst the lowest quotes in the market. For an Insta Jumbo Loan, the interest rate offered is 1.25% per month or 15% per annum. Lower is the interest rate, better it is for the customer.
- Processing charges: The processing charges are a one-time fee levied by the bank. In case of a Personal Loan, the processing charges can go up to 2.5% of the loan amount plus GST. While for Insta Jumbo Loan, the processing charge levied is a flat fee of Rs. 999 plus GST.
- Foreclosure charges: If you wish to foreclose your Personal Loan account with HDFC bank, you need to pay a foreclosure fee ranging between 2% to 4% of the outstanding amount plus GST. As for HDFC Jumbo Loan, the bank levies foreclosure charges of 3% plus GST.
- Eligibility: To avail the facility of an HDFC Personal Loan, you must be a salaried individual. For an HDFC instant jumbo loan, you could be a self-employed or business owner having an HDFC Bank Credit Card and Savings Bank Account.
- Part pre-payment: Customer can make part-prepayment against their Personal Loan, once in a financial year and twice during the entire repayment tenor. The maximum amount allowed for part pre-payment is 25% of the principal outstanding. There is no option of part pre-payment for an HDFC Insta Jumbo Loan.
- Balance Transfer: HDFC Bank offers the facility of a balance transfer to customers having a Personal Loan from another financial institution. This facility is not available for Jumbo Loan as it is available to only those customers who hold an HDFC Credit Card.
The decision regarding the suitability of either of these loans depends entirely on your requirements.