HDFC Personal Loan Review: Interest Rate, Eligibility, Apply

HDFC Personal Loan Review: Interest Rate, Eligibility, Apply

HDFC offers the largest personal loans in India.

Good for

  • Individuals seeking loans of more than Rs. 30 lakh
  • Current HDFC bank customers that need funds quickly

Bad for

  • Individuals seeking smaller loans
  • Self-employed individuals

Editor's Rating


HDFC's personal loans are excellent for those that require a large loan as the bank offers loans of up to Rs. 40 lakh. However, the bank charges slightly higher interest rates than other lenders in India, so if you don't need a very large loan, you may be able to find more affordable financing from another bank.

Summary of HDFC's Personal Loans
Largest personal loans in India: Up to Rs. 40 lakh
Loan tenure: 1 to 5 years
Slightly Above Average Interest Rates: 15.5% - 21.5%
Fast Cash Disbursement: 10 minutes - 1 working day

Table of Contents

What Makes HDFC Personal Loans Stand Out to Borrowers

HDFC's personal loans stand out due to their maximum quantum of Rs. 40 lakh, which is higher than any other personal lender in India. This makes it a good option for prospective borrowers that require a large amount of financing. Additionally, the bank offers some of the fastest cash disbursement in India, with loan funds made available to eligible borrowers within 10 seconds for current HDFC banking customers and within one working day for borrowers that are new to HDFC. This makes HDFC very attractive as a lender to those that urgently need a large sum of emergency funds.

Estimated Cost of HDFC's Large Personal Loans

Duration (Years)Processing FeeEffective Interest RateMonthly PaymentTotal Cost
12.5%15.5%Rs. 361,978Rs. 4,43,732
22.5%15.5%Rs. 194,898Rs. 7,77,556
32.5%15.5%Rs. 139,643Rs. 11,27,138
42.5%15.5%Rs. 112,339Rs. 14,92,293
52.5%15.5%Rs. 96,213Rs. 18,72,766
*Assuming loan of Rs. 40 lakh, total cost includes processing fee

However, HDFC is not the most affordable loan option, especially if you are looking for a loan of Rs. 30 lakh or less, because the bank charges relatively high interest rates of 15.5% to 21.5%, while other banks charge much less. Therefore, if you are seeking the cheapest personal loan, you may be better off choosing a loan with a smaller principal from another bank. Additionally, it is important to note that you may be able to negotiate lower interest rates from any bank depending on your financial situation.

Who Can Apply: Eligibility Criteria

Consider this if you require a very large personal loan

Required Monthly Income Rs. 15,000 NMI (Rs. 20,000 in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Cochin)
Min. Loan Amount Rs. 50,000
Max. Loan Amount Rs. 40 lakh
Processing Fee Up to 2.50%
Loan Tenure 12 to 60 months

In order to be eligible for HDFC's personal loans, prospective borrowers must be employees of private limited companies or public sector undertakings, including central, state and local bodies. Eligible applicants must also have employment histories of at least 1 year with their current employer and have held a job for at least 2 years. Additionally, applicants must earn at least Rs. 15,000 net income per month in order to be eligible for HDFC's personal loans; however, applicants that live in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad and Cochin must earn at least Rs. 20,000 to be eligible. Finally, individuals must be between 21 years and 60 years old. These criteria can make the bank less suitable for self-employed and low-income individuals.

Eligibility Requirements

  • Employment history of at least 2 years, 1 in current job for private limited company / public sector undertaking
  • Minimum net monthly income of Rs. 15,000 (Rs. 20,000 in some cities)
  • Age 21 - 60

Other Charges and Fees

HDFC charges a processing fee of up to 2.5% for its personal loans. This is slightly higher than the processing fees charged by most banks in India. It also charges a number of standard lending fees, including fees for early and late payments. With that said, we strongly recommend that borrowers carefully choose a loan and a repayment plan that fits their budget and allows them to avoid paying fees, thus keeping down their cost of borrowing.

Processing FeeUp to 2.50% of the loan principal (minimum Rs. 1,999, & maximum Rs. 25,000)
Early Payment Fee2% to 4% of principal outstanding
Late Payment Fee2% per month on monthly payment and principal overdue
Cheque Bounce FeeRs. 550
Cheque Swapping FeeRs. 500
Amortization Schedule FeeRs. 200

How to Apply: Application Process

To apply for a personal loan through HDFC, individuals must complete an application form. While KYC-compliant HDFC customers are not required to submit any documentation as part of their personal loan application. Customers that are new to HDFC must submit documents that prove their identity, address, employment and income.

Required Documents for Applying for HDFC's Personal Loan

  • Proof of Identity & Address: Copy of passport, voter ID card, driving license or Aadhaar
  • Proof of Employment: Latest salary slip or current dated salary certificate with the latest Form 16
  • Proof of Income: Bank statement for last 3 months
William Hofmann

William is a Product Manager at ValueChampion, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.