HDFC Bank is one of the leading private banks in India. With a total balance sheet of Rs. 8,95,653 crores and deposits worth Rs 6,71, 276 crores HDFC is India’s most valuable lender. The bank has always designed new and innovative ways to make their customer experience more enjoyable. Now you can convert large payments made on your HDFC Bank Debit Cards to Debit Card EMIs.
Debit Card EMIs allow you to pay for large purchases over a period of time. When you make a purchase using HDFC’s Debit Card EMI facility, HDFC pays the entire amount of your purchase to the vendor and opens an overdraft against your HDFC account. You can pay off this overdraft through EMIs, thereby, reducing the strain on your savings.
Advantages of HDFC Debit Card EMIs
No Money Blocked
There is no money that will be blocked in your HDFC account. Every month you will just need to pay the EMI amount.
A no-cost EMI carries no additional costs, as the name suggests, this means that you will not need to pay any interest or additional charges of fees for using this facility. This facility by HDFC is available on Flipkart and Amazon on select Debit Cards.
There are a number of EMI tenures to choose from when using HDFC’s Debit Card EMI facility. You can choose between tenures of 3, 6, 9, 12, 18, and 24 months, depending on your convenience.
Instant Approval and Disbursal
HDFC Debit Card EMI can be availed online in no time. HDFC provides pre-approved EMI facilities to its preferred customers and the disbursal of the amount to the vendor happens within seconds. This gives you no lag when you make a purchase through the Debit Card EMI facility.
HDFC Debit Card EMIs require no documentation. As this facility is attached to your bank account and you are technically repaying the bank and not the vendor, there is no documentation required to avail this facility.
No Down Payment
When opting for HDFC’s Debit Card EMI facility you can convert the entire amount to EMI. You do not need to pay a downpayment or anything to avail this facility.
Eligibility for HDFC Debit Card EMIs is left to the discretion of HDFC. HDFC determines a cardholder’s eligibility based on their transaction history, duration of holding the account, account statements, relationship with the bank, credit score, etc. If you are eligible for HDFC Debit Card EMIs you will be intimated by HDFC or it will show up as a payment option when you are making a purchase online.
Personal loans are one of the most popular financing solutions available today. What makes a personal loan so attractive is that it is a collateral-free option – you don’t have to pledge any security to avail of the money.
You can apply for a personal loan and get the money you need with relative ease. Moreover, lenders offer small- and big-ticket personal loans coupled with flexible tenors, allowing you to draw funds for your needs and repay your dues comfortably through EMIs.
Nonetheless, taking a personal loan comes with the responsibility of paying it back and this means understanding what factors into the cost of borrowing. You must also know about the application procedure and whether the approval time matches your funding requirements.
For a breakdown on these key elements including the application process, EMI, tenor, and interest rate, read our handy guide on everything you need to know about personal loans:
Applications for a personal loan can be made online – on the lender’s website or offline – at your lender’s branch. The online mode may be a preferred option as you avoid physical contact and enjoy faster and more convenient processes.
For instance, here is the procedure to get a Bajaj Finserv Personal Loan.
Apply online and fill up your personal, financial and employment information
Select the loan amount (principal) and tenor (repayment duration) to get instant approval
Submit the documents to a representative who will reach out to you
Get the funds transferred to your bank in 24 hours or less
Bajaj Finserv also offers you an online eligibility calculator for personal loans, to help you apply for funding as per what your current debt-to-income ratio permits. Using it, you can get a glimpse of the personal loan amount you are eligible for instantly.
Documents required and eligibility criteria
In most cases, you need to be employed at a reputed public or private organisation, meet the minimum monthly income criteria, and have a good CIBIL score, ideally 750 or above, to get a personal loan. Any resident Indian between 23 and 55 years of age can get a personal loan from Bajaj Finserv.
To prove your eligibility, here are the documents you must typically submit:
Employee ID card
Salary slips of last 2 months
Bank account statements of the last 3 months
Interest rate, tenor, and EMI
When you borrow a sum of money (principal), you commit to paying it back over many months (tenor) at a rate of interest. Your dues are spaced out over the length of the tenor equally, and you pay a monthly amount called an Equated Monthly Instalment (EMI).
To see how the principal, tenor and interest rate affect your EMI, use a personal loan calculator. This tool will greatly help you plan for repayment. To make a prudent decision, it is good to note some rules of thumb.
Firstly, your EMI is always proportional to the principal and interest rate. If either of these go up/down, your EMI will change likewise. However, while your EMI reduces as the tenor increases, your net interest payments increase side by side. Hence, it is apt to pick the shortest tenor possible.
Part-prepayments and other charges
While evaluating the cost of borrowing, consider the effect of part-prepayments. When you make one, you pay off a portion of the principal early and this reduces your remaining EMIs. The amount saved is substantial when you are in the early phases of repayment, as here the interest component of EMIs is more.
However, lenders charge you a fee for this facility. While calculating whether a pre-payment can help you save big, make sure you pay attention to this charge. In addition, it is well worth inspecting the other fees and charges associated with your personal loan, as these affect the total cost of the loan. These include processing fees, secure fees, bounce charges, penal interest, and statement charges. Knowing every charge upfront is key to enjoying a default-free repayment journey. Bajaj Finserv promises cost-effective fees and charges and no hidden costs to make your borrowing experience hassle-free.
Now that you know the various elements of a personal loan, make an informed choice by evaluating your need for finance and reading the fine print. Choose a lender that offers fast disbursal, has simple eligibility criteria that you can easily meet, charges a competitive interest rate on personal loan, is transparent about all related charges, and helps you apply and receive the loan 100% online. It’s also important to know of personal loan variants that may help you meet your needs better while making repayment more affordable during a cash crunch.
Once such example is the Flexi Hybrid Personal Loan offered by Bajaj Finserv, which allows you more flexibility by extending credit, from which you can withdraw funds based on your needs, and pay interest only on the amount utilised. By choosing the interest-only EMI facility, you can pay EMIs that are up to 50%* lower for the initial part of the tenor.
With such benefits at your fingertips, get started with a Bajaj Finserv Personal Loan to tackle your financial requirements. Simply check your pre-approved offer for instant approval through a personalized deal!
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A home loan is a long-term financial obligation that requires you to be consistent with your repayment. Your EMIs are based on the interest rate and type of home loan you’ve opted for apart from the total loan amount. You should know that while home loan interest rates change every now and then, it is your responsibility to figure out whether you’re getting the best value for your money. If you aren’t, it might be time to refinance your loan. You can do this by opting for the home loan balance transfer feature with another lender that offers a better, more suitable interest rate.
To better understand why a home loan transfer is the best at reducing home loan payments, look at its advantages below.
You can Reduce your EMIs
While you may have used a home loan EMI calculator before availing your home loan, the continuous EMI payments may start weighing down on your pocket as you age. This is especially hassling when you are aware of other lenders offering better interest rates. A balance transfer to one such lender helps you enjoy a lower interest rate that is charged on your principal amount which automatically results in lower EMIs. Not only is this easier on your pocket, it also helps you save on interest expenses significantly.
You can Reduce your Tenor
When the interest rate on your principal amount drops giving you lower or cheaper EMIs, you may be able to choose a shorter tenor. In this case, you can choose to pay EMIs of the same amount as you were paying earlier, but with a shorter tenor, or you can choose to increase your EMIs by an amount that you can afford. With a shorter tenor, you are free from debt faster and your total interest reduces.
Things to Keep in Mind when You opt for a Home Loan Balance Transfer
Tenor of your Current Home Loan
Before you think of refinancing your housing loan, consider the current stage of your repayment. Generally, it is advisable to opt for a balance transfer during the first half of your repayment simply because the interest component on your EMIs is larger than the principal component during this time. This means that transferring early, and at a better interest rate, could help you reduce your total interest.
For instance, say you have a house loan of Rs.60 lakh for 240 months at an interest rate of 11% taken in the year 2001. Say you have already paid off EMIs for the first 100 months and plan to refinance the loan in 2019, when you have 140 months left on your tenor at the new rate of 8.85%. Your total savings in this case will be Rs.10.34 lakh.
Top-up Loan Feature
When you refinance your home loan, lenders typically offer you a top up loan. This loan is in addition to your housing loan and the amount you’re offered depends on your housing loan repayment history. Some lenders have the amount capped, for instance, Bajaj Finserv offers a top-up loan up to Rs.50 lakh. This loan has no spending constraints and can be used to meet any financial goal.
The Cost Analysis of Availing the Home Loan Balance Transfer
In an attempt to save money, always consider the cost of refinancing your home loan. While it may offer great benefits, you’re required to pay fees to both, your current lender and new lender in the process. Factor all of these costs in and gauge whether or not this switch is actually going to save you money.
Always bag opportunities that ease your financial obligation, but do so only after thorough research. When you opt for the Bajaj Finserv Home Loan Balance Transfer, not only do you stand a chance to get a more affordable deal, but you also enjoy the luxury of transparency. This means that there are no hidden charges that can stress your finances. Additionally, if you opt for a floating interest rate housing loan when carrying out a balance transfer, you enjoy zero part-prepayment and foreclosure charges. To avail of this feature and all its benefits, check your pre-approved offer to get access to an easy home loan refinancing option.
A credit card basically works similar to a debit card; the only difference prevailing in its use is that the money would not get deducted from your account instantly, whenever you make a purchase. In fact, it is just like taking a short-term loan for which you may or may not get charged an interest for, depending on the time period during which you pay off that debt. You generally get a grace period to pay off the debt, generally a month in most of the cases, in which case you might not have to pay an interest for the used credits However, if you decide to pay off the debt after the due time, you might have to pay off hefty interest rates. Let us dig a bit deeper into the credit card world to know about them in detail.
Why Own a Credit Card?
Using a credit card wisely can benefit you in a number of ways for your future financial aspects A wisely used card, without any defaults might increase your credit score which can help you get loans in the future at favorable interest rates. Moreover, several banks and financial organizations offer exciting deals on shopping, traveling and other modes of payments along with cashback points which you can redeem on further payments. Moreover, owning and using a card wisely can also help you out in case of financial emergencies.
How to use your Credit Responsibly?
Many people misuse their credits and land up with huge debts along with heavy interest to be paid off. To avoid such situations and make the best out of a card ownership, you must be aware of your limits and must strictly avoid overspending. People usually end up spending a lot more through their credit availability, just because they can than what they can actually pay off by the end of the due date, which lands them up with huge interests to be paid off which keeps on increasing with each passing them. Ownership of a credit card needs critical financial backings along with responsible spending.
One can actually make a lot out of a credit usage, make proper use of it in case of emergencies and also lure out a lot of benefit through shopping wisely and collecting back exciting redeemable points. Moreover, using a credit card allows you one-month interest-free usage which you can actually take an advantage of to invest that money properly during that one month and pay back the financial providers within the stipulated time.
However, before owing a card, you must properly go through the terms and conditions which might be applicable on its ownership, some banks and financial providers might free of cost card usage, along with some credit usage terms, however, some might charge you some annual charges. Going through the interests applicable and any kind of other hidden information and doubts must also be cleared off before opting for any card of any specific bank.