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
You want to pay off high-interest debt: Personal loans are a good way to consolidate and pay off costly credit card debt. You'll use the funds toward necessary expenses: Other good reasons to use personal loans include paying for emergency expenses or remodeling your home.
What are the benefits of taking a loan from a bank? ›
Lower Interest Rates Than a Credit Card
Interest rates on personal loans are considerably lower than what credit cards charge, which means you can save money as you pay down debt.
Is getting a loan from the bank a good idea? ›
If that's your goal and you have a solid repayment plan, taking out a loan may not be a bad idea. But, if your credit needs work, you may be considered a risky borrower and your lender may charge a higher interest rate than if your credit is good.
Is it ever a good idea to take out a personal loan? ›
If you owe a substantial balance on one or more high-interest-rate credit cards, taking out a personal loan to pay them off could save you money. For example, the average interest rate on a credit card is 23.99%, while the average rate on a personal loan is 11.48%.
When should I take a personal loan? ›
A personal loan can be a good idea when: You need the funds fast. It is the financing option with the lowest rate. You can comfortably afford the monthly payments for the loan term.
Is it smart to get a loan from a bank? ›
Some personal loans from banks can come with benefits, like no origination fee and interest rate discounts for existing customers. But depending on your bank, you may run into problems getting approved if your credit needs some work. And your bank may require collateral for the loan.
Do personal loans hurt your credit? ›
A personal loan can affect your credit score in a number of ways—both good and bad. Taking out a personal loan isn't bad for your credit score in and of itself. However, it may affect your overall score for the short term and make it more difficult for you to obtain additional credit before that new loan is paid back.
Does a bank loan hurt your credit? ›
Hard inquiry on your credit: Due to the hard credit check, you will likely see a short-term drop in your credit score when you formally apply for the loan. While this may not be detrimental to your long-term credit score, it could cause some harm to your credit if you apply for multiple loans in a short time.
Is it better to go through a bank or lender for personal loan? ›
Since the process of getting a bank loan is more rigorous, banks are typically able to offer lower interest rates and sometimes provide perks for existing customers. Online lenders are less regulated than banks, allowing faster application processes and more lenient eligibility requirements.
What is a disadvantage of a personal loan? ›
Personal loans often come with a slew of different charges. Some loans charge a prepayment penalty that impacts borrowers who plan to pay back their loans early. Others may charge an origination fee that's typically between 1% and 6% of the loan amount. There may also be fees for missed or late payments.
Personal loans can boost your credit score by adding to your credit mix, improving your credit utilization and your payment history. Applying for a personal loan can hurt your credit score temporarily by adding to your current debt, and missing payments can lower it further.
Does taking a personal loan hurt your credit? ›
Your credit score can dip a few points when you formally apply for a personal loan, but missed payments can cause a more significant drop. Getting a personal loan will also increase the amount of debt you owe, which is one of the factors that make up your credit score.
What happens if you get a loan and don't use it? ›
If it's an unsecured personal loan (meaning no collateral was involved), most lenders don't care what you do with the funds. However, a debt consolidation loan is an exception, because it was granted for a specific purpose.
Is it good to take a personal loan to pay off credit cards? ›
The Bottom Line. Using a personal loan to pay off credit card debt can have several benefits. Personal loans typically have lower interest rates than credit cards, which can help you save money on interest charges and pay off your debt more quickly.
