HDFC Bank Offers Personal Loan amounts ranging from ₹1 Lakh to ₹50 Lakhs for salaried individuals, depending on the net income and other obligations. The loan amounts are generally determined based on a customer’s monthly income and their ability to pay the monthly instalment.

An applicant can apply for the loan amount required however, the criteria for approving the funds issued as an HDFC Bank Personal Loan for Salaried Employees are governed by HDFC Bank’s Policy. By segmenting the performing ratio, HDFC Bank allocates funds based on the following criteria:

Does Your Employer Feature in the HDFC Bank Company Category List?

Company Category According To The HDFC Bank Company Category List:- Your employer must be featured in the Approved List of Companies of HDFC Bank to process a Personal Loan. The HDFC Bank classifies companies into A, B, C, and D based on their net worth, turnover, and prospects. Their listings on the stock exchange and the Economic Times 500 list, as well as Government-Funded and publicly owned undertakings (PSUs), are included in the preferred list.

Employees of premium companies, included in the CAT A and CAT B company categories, are predicted to have a steady income and stability of employment and are granted higher loan amounts with more favourable terms compared to those employed by a CAT C company. According to HDFC Bank’s policy, the loan amount and tenure allotted to lower-category companies are capped.

For example, Ravi, who works in a Category A company and receives a monthly income of ₹50,000, is eligible to receive a loan amount of ₹15 lakhs. In contrast, Parul, who earns an income of ₹50,000 but is employed with a CAT C company, is eligible for a maximum amount of ₹10 lakhs.

How Does The Monthly Income Affect Eligibility?

Net Income:- The net income is a significant factor that affects the monthly EMI you can afford to pay for the loan amount. The income segments are divided according to the net income:

• ₹ 75k and above.
• ₹ 50k and above.
• ₹ 30k and above.

Applicants with an income of ₹75,000 or more are classified in the elite category and are eligible for unsecured Personal Loans of ₹15 Lakh or above from HDFC Bank.

The minimum salary requirement is ₹30,000, which must be deposited into the bank account every month via electronic transfer. The percentage of the income allotted by HDFC Bank towards the EMI increases in proportion to the salary received, as per the applicable multiplier. A higher income indicates that the applicant has more disposable funds at hand and can afford to pay a higher monthly EMI for a Personal Loan.

What is The Effect of The CIBIL Score On The Personal Loan Amount Issued by HDFC Bank?

HDFC Bank Personal Loan CIBIL Score and History:- HDFC Bank is among the leading lenders offering Personal Loans without a Credit history. If the applicant is a first-time borrower, the bank will offer lower loan amounts, providing the applicant with the opportunity to establish a credit history.

For existing credit users, a CIBIL Score of 730 or higher is required to process a Personal Loan from HDFC Bank. HDFC considers the applicant’s credit history and current EMI when determining the loan amount. A strong repayment history of existing loans encourages the Bank to approve the requested loan, while delayed repayment and bounced payments may lead to rejection.

Before finalising the loan amount, the CIBIL record is checked for existing credit and the EMI being paid by the applicant. This includes all mortgages, loans against commodities and credit card spending. If the existing obligations exceed the percentage of income allotted toward credit, the customer is declared overleveraged, and the Personal Loan Request is Rejected.

HDFC Bank also notes the number of inquiries in CIBIL when reviewing the applicant’s credit record. If there are too many recent inquiries, it indicates that the applicant has applied for credit simultaneously to multiple financial institutions.

Excessive inquiries are viewed negatively because they suggest the applicant may be under financial stress or trying to secure funds from multiple banks, which may indicate an inability to repay the loan on time.

How Do Your Credit Dues Affect the HDFC Bank Personal Loan Eligibility?

Credit Cards are convenient spending tools that allow users to utilise funds within the assigned limit and make repayments after a grace period of 45 to 50 days. A statement detailing the expenditure is sent to the customer for repayment on the due date. If unable to pay the full amount, a payment of 5% or the minimum dues must be made. The remaining balance is carried forward to the next cycle, subject to a finance charge of 36% to 42% per annum.

Applicants with unpaid Credit Card dues may face high interest rates. If there are outstanding balances on multiple cards, it may indicate that the applicant is experiencing financial difficulties. Therefore, the CIBIL Report is reviewed to determine the number of Credit Cards the customer holds and any pending dues. The HDFC includes 5% of the pending dues in the customer’s obligations. If the total due on the Credit Cards exceeds 5 times the customer’s income, the request is declined. For example:

Dinesh earns a monthly net salary of ₹ 40,000. He holds Credit Cards from HDFC Bank, ICICI Bank, and Axis Bank with the following details.

As per the above details, Dinesh has a current outstanding of three lakhs seventy-five thousand across all three cards. With an annual interest rate of 36%, the applicant will be charged ₹ 1,35,000 annually or ₹ 11,250 per month as interest.

What Other Factors Affect The Personal Loan Eligibility From HDFC Bank?

Besides the principal factors such as the Income, Company Category, and the CIBIL Score, the other factors taken into consideration include:

The Applicant’s Age:- Young applicants aged 23 or older who have recently been employed and are first-time loan seekers are offered a limited amount as a Personal Loan. Applicants above 53 years of age are offered a Personal Loan From HDFC Bank with a repayment tenure based on their remaining years of service.

An HDFC Bank Relationship:- Personal Loan applicants who have a salary account with HDFC Bank, or an existing loan or Credit Card, and have a proven track record of timely repayments are eligible for higher loan amounts.

Co-applicant Benefits:- HDFC Bank accepts spouses or parents as financial co-applicants. If a customer’s loan amount needs exceed what they can afford with their current income, the co-applicant’s income is added to boost eligibility. The co-applicant must meet the Eligibility Criteria of HDFC Bank terms and conditions to be accepted as a co-applicant.

Below Are The Frequently Asked Questions (FAQs) Regarding Eligibility for a Personal Loan from HDFC Bank.

• What is The Maximum Personal Loan An Applicant is Eligible To Get From HDFC Bank?

The maximum loan amount an applicant can receive from HDFC Bank depends on the profile, net income and the percentage of revenue that the applicant can dedicate towards repayment or the monthly EMI.

• Can An Applicant Request An Increase or Decrease in The Personal Loan Amount After It Has Been Sanctioned?

Applicants can request a lower amount after a Personal Loan is Approved however, if they do not receive the required loan amount, they can request a relook, but this may mean they are not eligible for a further amount.

• How Does The Repayment Tenure Affect The Amount of a Personal Loan Approved?

The repayment tenure for an HDFC Bank Personal Loan ranges from 12 months to 72 months and is allotted according to the applicant’s eligibility to pay the EMI. A shorter tenure will lower costs, but a longer tenure will allow the applicant to get increased funding.

• How Can We Check For a Suitable EMI Before Applying For a Personal Loan?

Using the EMI Calculator, applicants can calculate the EMI for the required loan amount, which helps them determine a suitable loan amount and tenure for their application.

• After How Long Can You Reapply For A Personal Loan to HDFC Bank After a Rejection?

An applicant can reapply for a Personal Loan to HDFC Bank after 30 calendar days.

• How Can You Increase Your Eligibility For a Personal Loan Amount From HDFC Bank?

An applicant can increase the Eligibility for a Personal Loan by repaying credit card bills due and by Applying for a Balance Transfer of an external Personal Loan to HDFC Bank.

• How Many Personal Loans Can Be Issued To An Applicant As Per The HDFC Bank Eligibility Check?

An applicant can apply for further Personal Loans to HDFC Bank after suitable intervals; the loan amount issued will be according to the applicant’s existing profile, CIBIL score, and existing obligations.

• Who is Eligible For An HDFC Personal Loan of ₹ 20 Lakhs and Above?

To qualify for an HDFC Personal Loan of ₹ 20 Lakhs, an applicant must meet the following eligibility criteria:

•  Net monthly income of ₹75,000.
•  CIBIL Score of 750 or higher.
• Be employed with a CAT A or CAT B company.
•  Eligible to pay the EMI alongside other existing obligations.
• What is the HDFC Bank Personal Loan Eligibility for ₹ 10 lakh?

To Receive a Personal Loan Amount of ₹ 10 Lakh, The Applicant Must Fulfil The Following Criteria:

• Have a net income of ₹ 50k and above.
• Have a CIBIL score of 730 and above.
• Employer must feature in the HDFC Bank Company Category List.
• Should be able to afford the EMI.
• Is a customer Eligible for a Personal Loan of ₹ 20 lakhs if the company is listed as a CAT D in the HDFC Bank List of Approved Companies?

An applicant employed by a CAT D Company is eligible for a maximum Personal Loan of ₹ 15 Lakhs from HDFC Bank.

The post Check Eligibility Criteria for HDFC Bank Personal Loans first appeared on Yourloanadvisors.

Why Do Lenders Refer To CIBIL Before Processing a Personal Loan?

Most lenders provide Personal Loans to salaried individuals as unsecured credit for short-term funding and seek prompt rotation of funds. Because Personal Loans are unsecured and granted without collateral, lenders have established a lending policy to ensure that the loan amount is repaid with interest within the specified time frame. Consequently, banks increasingly rely on CIBIL (Credit Bureau of India Ltd) information to assess loan seekers’ creditworthiness.

What is a CIBIL Score?

The CIBIL (Credit Bureau of India Ltd) began operations in 2007 as an agency for recording the credit usage data of individuals and organisations. Lenders regularly share data about the credit extended, which is then tabulated, and a credit history is maintained. This data is provided to the lender upon request. Before the CIBIL’s establishment, banks relied on their data to verify whether an applicant for a Personal Loan was a defaulter. Now, with a single point of record maintenance, lenders can share their customer experiences.

CIBIL initiated the system of generating a score in 2011, giving Lenders a consolidated numeric value for the creditworthiness of Loan seekers. To keep their default percentage minimum, most banks only process Personal Loans for applicants if their CIBIL score exceeds the required benchmark.

Does the HDFC Bank Issue a Personal Loan Without a CIBIL Score?

The exception is a few Lenders, of which HDFC Bank is the leading lender that considers Personal Loan Applications of lenders without a CIBIL Score.

Over the years, HDFC Bank has developed a robust Personal Loan portfolio. It has segmented its customer data to prioritise customers who have consistently repaid credit. If an applicant lacks a CIBIL Score, HDFC Bank will assess the Personal Loan request based on the merits of the following policy requirements.

When receiving a Personal Loan request, the HDFC Bank sends an enquiry to CIBIL to check the applicant’s credit history and CIBIL Score. In case the applicant is a first-time loan seeker or has recently acquired credit, the CIBIL will report the same as follows:

• Applicants Without a CIBIL Account: First-time loan seekers with no prior credit usage usually do not have a CIBIL account, resulting in an NA (Not applicable) response from CIBIL.
• Applicants with a 0 or -1 CIBIL Score: If your CIBIL report reflects your score as 0 or -1, it indicates that an account has been created with your information since you have appended credit in some form, but if you recently acquired credit, the details are forwarded to CIBIL, which generates a CIBIL Score after at least 12 months of regular credit usage.

The Personal Loan Eligibility Criteria of HDFC Bank

How will HDFC Bank evaluate the request and issue a Personal Loan to an applicant without a CIBIL Score? To obtain a Personal Loan from HDFC Bank without a CIBIL Score, the applicant’s profile must meet the following criteria.

Employment with a Company Included in the HDFC Bank Company Category List: HDFC Bank Processes Personal Loans for applicants whose employers are on the approved list. Applications are viewed favourably for individuals employed in Elite/Super A/Cat A and B Companies who are first-time credit seekers. Employees of these elite companies have stable employment with timely remuneration payments. Loan amounts are issued based on the applicant’s requirements.

Applicants without a CIBIL Score employed in categories C and D of the HDFC Bank Company Category List do not receive the same privileges as those in the upper categories. The approved loan amount and repayment term are limited.

Age Criteria: With age comes experience and stability it is expected that individuals will like to establish themselves with age and will avail suitable credit. If an applicant is over the age of 35 years and has been employed for several years, it is expected that they will use credit at some point, in the form of a Credit Card, auto loan or consumer loan. It will be only in unusual circumstances that there has been no credit usage.

Therefore, if an applicant is over 32 years old and has no Credit Score, HDFC Bank will view a Personal Loan request negatively. However, exceptions are made if the applicant is employed in government services or unusual situations.

Educational and Professional Qualifications: Higher education with a professional degree ensures a well-paying job and a secure future. Prominent companies listed in the HDFC Bank Company Category employ graduates from reputable institutes and offer enhanced packages. HDFC Bank provides the privileges of a Personal Loan to such applicants, even though they have yet to initiate a credit account and do not have a CIBIL history.

Monthly Income: Salaried individuals manage their budgets based on their monthly income. HDFC Bank Offers Personal Loans to salaried individuals earning 30k and above, employed by a company featured in the HDFC Bank Company Category List, without a Credit Score.

High-income applicants with a top-listed company are issued enhanced loan amounts, whereas applicants employed with lower-tier companies are issued restricted loan amounts.

The HDFC Bank entertains Personal Loan requests from applicants without a CIBIL Score who adhere to the other policy requirements. Having been trusted by the Bank and issued a Personal Loan, the onus lies with the customer to ensure timely repayments and complete the repayment over the allotted tenure to create a healthy CIBIL Score!

The post Understanding HDFC Bank’s Personal Loan Policies for Applicants Without a CIBIL Score first appeared on Yourloanadvisors.