It happens to all of us. There was a family emergency, and you had to take loans at high interest rates to meet pressing demands. But you’ve fallen behind in your payments and the interest and principal are accumulating at breakneck speed. You’re in danger of falling into a debt trap, and you’re thinking of how to get an instant loan to climb out of it.
The best choice could be a Personal Loan from a bank. Here’s why:
It’s quick:You can get a Personal Loan in a matter of hours. Apply in the morning, and you could have the cash in hand by late afternoon. HDFC Bank offers pre-approved loans to customers in 10 seconds flat*. Non – HDFC Bank customers can get loans in 4 hours. If you’ve wondered how to get an instant loan, wonder no more.
You don’t need collateral:Since Personal Loans are unsecured (without collateral or security) loans, banks will look at your income, cash flows, strength or stability of your business or employment to make sure you are able to repay the loan.HDFC Bank customers can get Personal Loans with minimal or no documentation. In fact, if they are pre- approved for a Personal Loan, they can easily apply for it.
Lower interest rates:Interest rates on Personal Loans are lower than other sources. If you have a good credit history, strong income proof, and a long relationship with the bank, you should be able to get good terms.
Easy repayment terms:Personal Loans are short to medium term (12 to 60 months) loans with a flexible repayment structure. You will typically repay the loan in equated monthly instalments (EMIs). You can adjust your repayment tenure to make your EMIs pocket-friendly. HDFC Bank offers loans with EMIs starting at Rs 2,162per lakh. Check thePersonal Loan EMI Calculatorto plan your repayment better.
It’s easy:Getting a Personal Loan from HDFC Bank is easy, especially if you have your documents in order and you have a good credit track record. It helps if you are an existing customer. You can apply for a loan viaNetBanking, on the HDFC Bank website, at an ATM, or by visiting a branch near you.
Check out everything you need to know about personal loan.
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* Terms & conditions apply. Personal Loan disbursal at sole discretion of HDFC Bank Ltd.
FAQs
Personal loan funds can be used for a number of purposes, including debt consolidation and medical expenses. They can also be a good solution if you need funds fast. Some lenders can deposit funds into your account as fast as the next business day.
Is it ever a good idea to take out a personal loan? ›
A personal loan can be used for most purposes, including debt consolidation, home improvement projects, and medical bills. Interest rates are typically far cheaper than credit card APRs, making them an attractive option, especially for borrowers who don't have collateral.
What are the pros and cons of getting a bank loan? ›
Interest rates on bank loans are usually lower than that in other financing methods (e.g. inventory and invoice financing). Bank loan applications require collection and submission of lots of paperwork. The process could be taxing and time-consuming.
Do personal loans damage your credit? ›
A personal loan may lower the total age of your accounts and increase the amount owed portion of your credit – both of which can lower your score.
What can't you use a personal loan for? ›
College tuition: Most lenders prohibit you from using personal loans to pay college tuition and fees. Additionally, many lenders won't allow you to use a personal loan to pay off existing student loans. Down payment on a home purchase: You typically can't use a personal loan for a down payment on a home.
Is there a risk to a personal loan? ›
Come With Fees and Penalties
In addition to interest rates, many lenders charge application fees and origination fees to cover the cost of processing. Likewise, a borrower may encounter penalties for making a late payment or having insufficient funds for payment.
What happens if you get a loan and don't use it? ›
If you decide that you don't want or need a loan once you have received the funds, you have two options: Take the financial hit and repay the loan, along with origination fees and prepayment penalty. Use the money for another purpose, but faithfully make each monthly payment until the loan is paid in full.
Is it OK to pay off a personal loan early? ›
Yes, you can pay off a personal loan early, but it may not be a good idea. CNBC Select explains why. When it comes to paying down debt, you might have heard that paying off your balance as quickly as possible can help you save money in the long run. And this is often the case.
Is it better to go through a bank or lender for personal loan? ›
As personal loans are often unsecured, there tends to be stricter credit requirements to offset the risk of giving out a loan without collateral. Higher interest rates and fees: Banks tend to charge higher interest rates and more fees compared to their credit union and online lender counterparts.
What is a disadvantage of a bank loan? ›
Loans are not very flexible - you could be paying interest on funds you're not using. You could have trouble making monthly repayments if your customers don't pay you promptly, causing cashflow problems. In some cases, loans are secured against the assets of the business or your personal possessions, eg your home.
Personal Loan is an unsecured credit provided by financial institutions based on criteria like employment history, repayment capacity, income level, profession and credit history. Personal Loan, which is also known as a consumer loan is a multi-purpose loan, which you can use to meet any of your immediate needs.
Is taking a loan a good idea? ›
Although borrowing money may seem like a good idea if you're strapped for cash, there are times when getting a loan may be a bad idea. While it's true a personal loan can be used for almost any reason, interest charges can add up, and your credit may take a hit if you miss payments.
Is it beneficial to pay off personal loan early? ›
In 2023, average rates on a two-year personal loan are above 11%. While that interest rate may be comfortable for some budgets, it can place a real burden on others. Paying high-rate personal loans off early can save money in interest and free up cash in the monthly budget faster.
