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.
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* Terms & conditions apply. Personal Loan disbursal at sole discretion of HDFC Bank Ltd.
FAQs
If you have high-interest debt, a personal loan may be a good solution to consolidate it into one loan with a lower interest rate. Other popular uses are for large purchases such as medical emergencies, home improvement projects and vacations.
What are the benefits of taking a personal loan? ›
If you have high-interest debt, a personal loan may be a good solution to consolidate it into one loan with a lower interest rate. Other popular uses are for large purchases such as medical emergencies, home improvement projects and vacations.
What is the best reason to say when applying for a loan? ›
The most common reasons to get a personal loan include emergency expenses, major purchases, home repairs, or milestones. A personal loan may be the right option if you have a good credit score, and your costs fall under these categories.
How can I benefit from bank loans? ›
Interest rates and repayment amounts are fixed at the outset, making it easy to plan your budget and predict spending. Bank lenders do not share ownership of your company. Interest rates on bank loans are usually lower than that in other financing methods (e.g. inventory and invoice financing).
What is the benefit of banks making loans? ›
Advantages of Bank Loans
As Bizfluent says, bank loans offer significantly lower interest rates than you will find with credit cards or overdraft. Flexibility: When you receive a bank loan, the bank will not provide a set of rules dictating how you spend the money.
Is it worth it to get personal loan from a bank? ›
In some cases, a personal loan can help you meet a financial goal, such as consolidating high-interest debt or financing a home improvement project that increases your home's value. But it may not be the best option in an emergency or to pay for a discretionary expense like a vacation or wedding.
How do you answer the purpose of a loan? ›
- Consolidate debt. Consolidating debt is one of the most common reasons to borrow a personal loan. ...
- Cover emergency expenses. ...
- Home improvement projects. ...
- Finance funeral expenses. ...
- Help cover moving costs. ...
- Make a large purchase. ...
- Cover a major life milestone. ...
- Pay for a vacation.
Explain why you need the money and how it will be used. When discussing repayment terms, be specific about the amount of money you need, when you need it, and how you plan to repay it. If you're requesting a loan, consider discussing interest rates, repayment schedules, and any penalties or fees for late payments.
Can I use my personal loan for anything? ›
You can use a personal loan to pay for almost anything. Common uses include debt consolidation, home improvement projects and emergencies. Annie Millerbernd is an assistant assigning editor and NerdWallet authority on personal loans.
How do I ask for a personal loan from a bank? ›
The application itself will vary by bank, but you'll likely need to submit:
- Personal details, including name, address, phone number, date of birth and Social Security number.
- Loan details, including desired loan amount, loan purpose and repayment term.
- Proof of employment and income.
- Information about current debts.
Bank loan
| Advantages | Disadvantages |
|---|
| Can be arranged quickly | Interest has to be paid in addition to the loan amount |
| Loan can be repaid over a long period of time | |
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.
Is it beneficial to pay off personal loan early? ›
On the one hand, you save money on accruing interest when you pay off a debt early, and your debt-to-income ratio will go down. However, some lenders charge a prepayment penalty for early payments, and using your spare income to pay off your loan early means it won't be available for other expenses.
Does personal loan improve your credit score? ›
Key takeaways
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.
Do personal loans damage your credit? ›
A personal loan will cause a slight hit to your credit score in the short term, but making on-time payments will bring it back up and can help improve your credit in the long run. A personal loan calculator can be a big help when it comes to determining the loan repayment term that's right for you.
