HDFC Personal Loan Interest Rates HDFC Personal Loan Interest Rate for Salary Account

Need a loan and opting for a personal loan? Here are its alternatives 

When you urgently require cash, one of the easiest option and most well-known options is a personal loan. But with HDFC Personal loan Interest Rates, it is not a wise option to do so. Moreover, for a bank to approve your personal loan application, they will look at your credit score, previous credit history, etc. If you have nothing to show up, getting approval from your bank could be difficult. In this blog, we have listed alternatives that will offer better terms and reasonable interest rates if compared with HDFC Personal Loan Interest Rate for Salary Account. 

Loan against fixed deposits: Because banks lend against their own fixed deposits, this is the fastest type of loan. This kind of loan should be repaid within the fixed deposit’s tenure. The major benefit is that there is little paperwork needed, and loans up to 80% of the set deposit amount are accessible. Even the interest is lower than the HDFC personal loan interest rate for the salary account. Additionally, interest is still earned on your fixed deposit during the loan’s tenure. When the amount needed is less than what is currently in the FD, taking a loan against it is preferable instead of liquidating your FD. Let’s say you have a 10 lakh rupee FD but only need 3 to 4 lakh. A loan would be preferable. The withdrawal of FD is subject to an early termination fee. A loan would frequently be more economical than paying the fine, especially if the borrower could prepay it. But it’s best to break the FD if you’re unsure about your ability to repay on time. Keep in mind that your credit score may be impacted by a loan default against your FD.

Gold loan: Originally a common form of funding in rural and semi-urban areas, gold loans have recently gained extreme popularity in metro areas as well. This kind of financing offers quick liquidity. It allows you to avail of the loan without having to sell off your jewellery. In this, most lenders do not charge processing and pre-payment fees, unlike personal loan where not only the  HDFC personal loan interest rate for salary account is high, but the lender also charges processing fees. The loan amount depends heavily on the purity and the weight of the gold that is given to the lender. If you compare HDFC personal loan interest rates, interest rates on the gold loan are also on the lower end and don’t need credit scores as well. 

Loan against Property: You are able to take out a loan against your property, and the loan amount is determined by the property’s value and the borrower’s repayment capabilities. If the loan value has to be raised or the property value has increased over time, refinancing the property is an alternative. Due to the fact that property typically has a larger value than any other type of security, failure to make timely payments might result in loss of ownership; therefore, extreme caution must be used when selecting this type of credit option.

Loan against shares: Banks offer loans secured by the shares you own in particular companies. However, not all of the shares you own are eligible for such loans. Each bank has its own list of securities that are eligible for loans. The amount depends on the security’s value and your capacity to pay back and service the loan. However, compared to other types of loans and HDFC personal loan interest rates, the amount given to you as a percentage of the security provided is substantially lower. In the end, it gives you the benefit of avail of credit without having to sell your shares. 

Loan against life insurance policies: The insurance policy that you bought can help you secure credit at better terms. Loans against LIC policies have reduced interest rates unlike  HDFC personal loan interest rate for salary account and simple repayment choices. This type of loan is availed by pledging your insurance policies to the banks, which in turn provide loans up to 90 percent of the current surrender value. The policy’s value determines the borrowing amount you will get. Anytime during the duration of the policy, the loan amount you have borrowed may be paid back. Interest will be subtracted from the claim in the event that a loan balance is not repaid. There is little paperwork required for this kind of loan, and if compared with HDFC personal loan interest rates, the interest rate on a loan against LIC comes out cheaper. The interest rates offered on this type of loan range from 9-13 percent. 

Loan against Public Provident Fund (PPF): Loans against PPF are allowed, but the maximum tenure is two years. If the initial loan is paid off, the borrower is eligible for a second loan if they are within 3-6 years of opening an account. Why so many people prefer taking this credit is because you get to avail credit without breaking your PPF. 

Loan against EPF amount: You can always request a loan of up to 90% of the remaining value in your EPF account if you have an account with the Employee Provident Fund Organization (EPFO).

Loan against mutual funds: Loans may be obtained using mutual funds as collateral. Lenders agree to accept the acquired units in exchange for their loan. The type of mutual fund scheme you have invested in and the financial institution from which you will borrow will both have a significant impact on the amount of loan you can obtain against your mutual fund assets. Some banks will let you avail of loans either up to 50%, and some might allow you to take loans up to 85% of the value of your debt mutual fund schemes. Borrowers should also know that not all banks offer loans against mutual funds. There is a maximum and minimum limit on the loan amount you can get 


It is true that personal loans can be used for just about any purpose, but if you look at the HDFC personal loan interest rates, you will see they are not the most affordable credit option out there. If you are in the market and looking for credit, you should explore the aforesaid options. Not only do these options come with a lower interest rate if compared with HDFC personal loan interest rate for salary account but they have better favourable terms.  

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