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
Many personal loans can often be applied for and acquired quickly. This can be a major benefit if you're in a pinch due to an unexpected expense such as a medical emergency or car repair. Depending on your lender, the money can be in your account and ready to use as quickly as the same or the next business day.
What are the benefits of taking a personal loan? ›
Many personal loans can often be applied for and acquired quickly. This can be a major benefit if you're in a pinch due to an unexpected expense such as a medical emergency or car repair. Depending on your lender, the money can be in your account and ready to use as quickly as the same or the next business day.
What is the best reason to say when applying for a loan? ›
There are many reasons why people apply for personal loans. These include: debt consolidation, medical and dental expenses, IVF treatment, home repairs/improvements, weddings, large purchases (like appliances or furniture), car repairs, and more.
What to say to get approved for a personal loan? ›
To get a better idea of what you may want to tell your lender, below are some of the most common reasons to get a personal loan:
- A Short-Term Unexpected Emergency Expense.
- To Consolidate Debt.
- A Large Purchase.
- Home Repair and Renovation.
- Covering Costs for Major Milestones and Goals.
- Paying for School.
- Buying Real Estate.
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 are the benefits of taking a loan from a bank? ›
Low Interest Rates: Generally, bank loans have the cheapest interest rates. The rates you pay will be cheaper than other types of high interest loans, such as venture capital. As Bizfluent says, bank loans offer significantly lower interest rates than you will find with credit cards or overdraft.
What are 3 advantages of a loan? ›
Consider the potential advantages:
- Flexible Use.
- One Lump Sum.
- Fast Funding.
- They Can Help Build Your Credit Score.
- Higher Borrowing Limit Than a Credit Card.
- Lower Interest Rates Than a Credit Card.
- Predictable Repayment Schedule.
- Flexible Repayment Terms.
In short, the key items for your bank/investor meeting are:
- Being prepared.
- Having good knowledge of your file.
- Ensuring your application is complete and up to date.
- Presenting realistic figures (draw comparisons with competitors, ask that they be verified by an expert…)
- Being realistic!
The key is to get as specific as possible. For instance, if you need $700 for a car repair, tell your lender that the money is for that reason. You should also map out a repayment plan, like paying them back $70 a month for the next 10 months.
Do I have to give a reason for a personal loan? ›
While most reasons won't stop you from obtaining a personal loan, you'll need to explain why you need the money you're borrowing.
Here are a list of 10 things you should not say to your lender:
- 1) Anything untruthful.
- 2) What's the most I can borrow?
- 3) I forgot to pay that bill again.
- 4) Check out my new credit cards.
- 5) Which credit card ISN'T maxed out?
- 6) Changing jobs annually is my specialty.
- 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.
Requirements to receive a personal loan
This allows them to look at your history from the past seven years and see whether you've typically made payments on time. For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate.
Should I borrow money from my bank? ›
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.
Why do people take loans from banks? ›
Lower Interest Rate
However, when you take a loan from a bank, the institute charges you reasonable interest rates while acting on the strict guidelines. The bank also offers surplus time to pay back the loan thus, helping you lower the burden of heavy interest rates on loans.
Can you use a 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.
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%.
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.
Is it beneficial to pay off personal loan early? ›
"In many cases, paying off a personal loan early will save the borrower money in interest," says Thomas Nitzsche, senior director of media and brand at Money Management International, a nonprofit credit counseling agency. With loan payments out of the way, you free up money to pad your monthly budget.
When should you consider using a personal loan? ›
If you have significant credit card debt, now might be a good time to look into debt consolidation. This is a form of debt refinancing where you combine multiple balances into a single loan, ideally with a lower interest rate. In this case, you would use a personal loan to pay off your high-interest credit card debts.
