HDFC Bank gives the best deal on personal loans. There you can borrow a maximum of INR 40 Lakh without pledging any of your assets. And the starting interest rate is as low as 10.25% per annum. So, it will be an ideal loan for your child’s further education. You should know that higher education is very expensive. And it won’t be possible for you to afford the same unless you have had some savings. So, if you didn’t think of it earlier and haven’t saved any money for your child’s education, don’t worry. Because HDFC Personal Loan is there to meet your urgent financial needs. This loan is designed to keep your urgent needs in mind such as a medical emergency, renovation or shortage of funds for college admission. Read this page further to know more about the HDFC Personal Loan.
Does the HDFC Personal Loan Cover My Children’s Education Fees?
Yes, the loan will easily cover the education cost of your children –
- Hostel Fees – INR 10,000
- Admission Fees – INR 6,000-10,000
- Building Fund – INR 1-2 Lakh
- Extracurricular Activities/Sports – INR 30,000-40,000
Note – The above may vary from college to college.
So, what you have learned from this is that an HDFC Loan can cover your education fees.
How Much is the HDFC Personal Loan Interest Rate?
The interest rate, which starts from 10.25% per annum, may vary based on the following factors –
Income of the Applicant
For borrowing an HDFC Personal Loan, you need a minimum salary of INR 25,000. If you don’t meet this requirement, your loan application won’t be shortlisted for approval. In case you have an income above the minimum requirement, it can be advantageous for you. With this factor, you can negotiate for a lower interest rate.
Previous Repayment Record of the Applicant
One’s previous record of repayment shows how well a borrower handles the EMIs. And in case there is even a minor record of missed payments, it could make a negative impact and increase your interest rate. So, what you have to do is check your credit score beforehand. It helps you know your credit record. And in case the record is showing wrong information, file a dispute to correct the same. It will help you increase your credit score and borrow an HDFC Personal Loan at an affordable rate.
When there is a co-borrower in an HDFC Personal Loan, the interest rate won’t be high. And why is that? Because two borrowers reduce the risk attached to the loan amount. In a joint personal loan, if one borrower isn’t capable of repaying the borrowed amount, the co-borrower steps in to complete the loan repayment.
Note – Non-payment of HDFC Personal Loan will impact both primary and secondary borrowers’ credit status. So, co-borrow a loan with a trusted partner such as a spouse or parents.
If you already have an existing loan, it will be difficult for you to repay the HDFC Loan. So, it can increase your interest rate. Why? Because the chances of non-payment are high in situations like this. An applicant with more repayment burden is more likely to default on a loan compared to an applicant with no current loan obligation. So, don’t apply for an HDFC Personal Loan unless you’re sure that you can repay the loan in full.
HDFC Bank will check your income to see how much you’re capable of managing two EMIs at the same time. And you can calculate your EMIs online by HDFC personal loan EMI calculator. If you are found eligible for the loan, the money is disbursed to your account and the repayment will begin from the scheduled date.
So, if your child has completed his 12th standard and is doing entrance exams, you complete your part in his/her admission by borrowing an HDFC personal loan.