HDFC Bank has slashed the interest rates on personal loans and commercial vehicles from February 23rd.

Personal loan rates have been reduced by 75 to 100 basis points from the existing rate of 17% to 17.5% while interest rate on commercial vehicle loans and two-wheeler loans have declined by 125 basis points to 13.5% to14% and 150 basis points to 24% to 24.5% respectively.

Home, auto and other retail loans will cost up to 0.75 per cent more, with lenders HDFC, ICICI Bank and SBI announced an increase in interest rates following the Reserve Bank squeeze on money supply.

HDFC will raise its minimum floating rate for home loans by 0.75 per cent to 11 per cent for new customers from 10.25 per cent from tomorrow, while the existing customers will have to shell out 0.50 per cent more at 10.75 per cent.

The new fixed rate would be 14 per cent, up 0.75 per cent. ICICI Bank increased its benchmark floating rate for retail customers, including home loan borrowers, by 0.75 per cent to 13.50 per cent.

The existing fixed rate customers, whose loans are fully disbursed, will, however, not be impacted by the increase and they will have to pay the prevailing rate.

ICICI Bank has also announced increase in benchmark rate for corporate by 0.75 percent to 16.50 percent.

HDFC bank also increased its deposit rates by 0.50 percent across most maturities, while ICICI Bank raised interest rates on fixed deposits of less than Rs 15 lakh by 0.50-1 percent .

The announcement by two banks came close on the heels of similar announcement by the largest lender SBI.

Personal loans are truly multi-purpose loans. Such loans take care of your financial needs – as strange as buying a leopard or as mundane as purchasing regular store items. Different types of personal loans are available for different situations. You can apply for such loans whenever you need money. Most people take this option because personal loans are easily accessible and quickly dispersible. Both homeowners and tenants can take recourse to these loans in times of need.Information about Personal Loans from HDFC Bank is given here………

Personal Loans from HDFC Bank

Features & Benefits
Borrow up to Rs 10,00,000 for any purpose depending on your requirements.
Flexible Repayment options, ranging from 12 to 48 months.
Repay with easy EMIs.
One of the lowest interest rates.
Hassle free loans – No guarantor/security/collateral required.
Speedy loan approval.
Convenience of service at your doorstep.
Customer privileges

# If you are an HDFC Bank account holder, HDFC Bank have special rates for their existing customers.

# If you are an existing Auto Loan customer with a clear repayment of 12 months or more from any of HDFC approved financiers or HDFC Bank, you can get a hassle free personal loan (without income documentation).

# If you are an existing HDFC Bank Personal Loan customer with a clear repayment of 12 months or more,HDFC Bank can Top-Up your personal loan.

Credit Shield
In case of death or total permanent disability of the loanee,the loanee/nominee can avail of the Payment Protection Insurance (Credit Shield) which insures the principle outstandings on the loan upto a maximum of the loan amount.Principle outstanding is defined as the amount of loan outstanding (not including any arrears in payment or interest thereon) at the Date of Loss,having accounted for payments made and interest accruing as determined in the Policy. Hence,the amount covered does not include any principal added because of non – payment of EMI and also will not include interest/ accrued charges.

Personal Accident Cover
In order to ensure that your family is taken care of we also offer a Personal Accident cover of Rs.2,00,000 at a nominal premium.*

* Premium will be charged for both these products which will be deducted from the loan amount at the time of disbursal .A transaction fee of Rs.350 will also be deducted at the time of disbursal.Pls note that service tax @ 12.36% will also be charged.

Documentations

Salaried Individuals include Salaried Doctors, CAs, employees of select Public and Private limited companies, Government Sector employees including public sector undertakings and central, state and local bodies:

Eligibility Criteria

* Minimum age of Applicant: 21 years
* Maximum age of Applicant at loan maturity: 60 years
* Minimum employment: Minimum 2 years in employment and minimum 1 year in the current organization
* Minimum Net Monthly Income: Rs. 7,000 p.m (Rs. 6,000 in select cities)

Documents required:

* Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)
* Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate)
* Bank Statements (latest 3 months bank statement / 6 months bank passbook)
* Latest salary slip or current dated salary certificate with latest Form 16

Are you Eligible for a Personal Loan? See our Eligibilty calculator.
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Self employed (Professionals) include self – employed Doctors, Chartered Accountants, Engineers, MBA Consultants, Architects, Company Secretaries.

Eligibility Criteria

* Minimum age of Applicant: 25 years
* Maximum age of Applicant at loan maturity: 65 years
* Years in business: Minimum 3 years in current business and 5 years total business experience
* Minimum Annual Income:
Rs 60000 p.a. taxable income for Doctors and CAs
Rs 100,000 p.a. taxable income for Engineers, MBA Consultants, Architects, CS.

Documents required:

* Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence).
* Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate).
* Bank Statements(latest 6 months bank statement /passbook)
* Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
* Qualification proof of the highest professional degree

Are you Eligible for a Personal Loan? See our Eligibilty calculator.
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Self Employed (Individuals) include self-employed – Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services.

Eligibility Criteria

* Minimum age of Applicant: 21 years
* Maximum age of Applicant at loan maturity: 65 years
* Years in business: 5 yrs continuous business experience
* Minimum Annual Income: Rs. 1,00,000 p.a.
* Available in select cities

Documents required:

* Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)
* Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate)
* Bank Statements(latest 6 months bank statement /passbook)
* Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
* Proof of continuation (Trade licence /Establishment /Sales Tax certificate)
* Other Mandatory Documents(Sole Prop. Decl. Or Cert. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)

Self Employed (Pvt Cos and Partnership Firms) include Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services

Eligibility Criteria

* Years in business: Minimum of 3 years in current business and 5 years total business experience
* Business must be profit making for the last 2 years
* Minimum Annual Income: Rs 100000 p.a.
* Available in select cities

Documents required:

* Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate)
* Bank Statements(latest 6 months bank statement /passbook)
* Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
* Proof of continuation (Trade licence /Establishment /Sales Tax certificate)
* Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original).)

Charges for Personal Loan

Loan Processing Charges     Upto a maximum 2% of the loan amount

Pre-payment charges             Upto 4% of the Principal Outstanding

No Due Certificate / No Objection Certificate (NOC)     Nil

Solvency Certificate     Not applicable

Charges for late payment of EMI     @ 24 % p.a on amount outstanding from date of default

Charges for changing from fixed to floating rate of interest     Not applicable

Charges for changing from floating to fixed rate of interest     Not applicable

Stamp Duty & other statutory charges     As per applicable laws of the state

Credit assessment charges     Not applicable

Non standard repayment charges     Not applicable

Cheque swapping charges     Upto Rs 500/- per event

Loan cancellation / re-booking charges / Re-scheduling     Upto Rs 1000/-

Bounce Cheque Charges     Upto Rs 450/- per Bouncing

Statement Charges (per statement)/ Repayment Schedule     Upto Rs 500/-

Legal / incidental charges     At actual

Sources  :  http://www.hdfcbank.com/

HDFC Bank is planning to introduce lower cost loans in November.

HDFC Bank is also planning to phase out its Small Ticket Personal Loan (STPL). It will now be called MTPL (Medium Ticket Personal Loan). The ticket size will be enhanced from Rs 10,000 to Rs 20,000 for HDFC Bank to a maximum of Rs 5 lakh for salaried individuals. In other words, it will fall into the regular loan category and STPL will no longer exist. Interest rates will also be cut from 37% to about 18-22% (reducing) and 12% flat (per annum).

The customer rates on an average ticket loan of Rs 25,000 will come down,It means that lower income groups, including hawkers, vendors, rickshaw pullers, auto drivers and small-time traders, can access loans lower than Rs 20,000 from the banks.

Sources : http://www.economictimes.indiatimes.com/

If you need some extra money, then borrowing from your bank might be the answer. If you use a bank simply for savings and a current account, then perhaps it is time to look at other financial products that your bank can offer. If you want to borrow from your bank, here are some of the possible options and benefits.

Why borrow money?

People borrow money for all sorts of reasons, and in all different ways. If you are finding it hard to make ends meet at the moment then getting a credit card or loan may help you out over the next few months. Also, if you need to make a large purchase but you need to spread the cost, then borrowing from your bank is a good option.

Credit cards

Perhaps the most common way to borrow from your bank is to get a credit card. A credit card gives you a certain amount of money or credit that you can spend, which you have to pay back with interest. Bills are paid monthly and you can choose to pay the full amount or just the minimum payment each month. Borrowing money on a credit card is expensive, but for short-term purchases they can be great if you pay the balance back in full each month.

Loans

Loans are another common way to borrow from your bank. Your bank is likely to have a variety of loans on offer, ranging from small personal loans to much larger loans for business or home improvements. If you need to pay off high interest debts or make a large purchase and pay it back slowly, then loans might be the right option for you.

Advantages of using your bank

The main advantage of using your bank to borrow money is that they know what sort of spending patterns you have, and if you have built a rapport with them they are likely to be more generous than other lending institutions. It may also be convenient to use the same bank that you do now, as all your accounts are in one place and you can manage your money more easily.

Disadvantages

There are also a number of disadvantages to using your own bank. Although your bank may give you a good deal, it may not be the best deal you can possibly find. Although speaking to your own bank is a good idea, you should shop around and look at other lenders in order to get the best possible terms. You should also make sure that borrowing money is right for you, and that you can make any repayments that are required.

HDFC Personal Loans to suit Personal requirements of any person like marriage,holiday plan,child education,purchasing of any house hold Item.HDFC Bank offers personal loans with the following features

# Loans up to Rupees one million for any purpose.
# Flexible Repayment Options ranging from 12 to 48 months.
# Repayment through Easy Monthly Installments (EMIs).
# Low Rate of Interest
# Hassle free loans – No guarantor/security/collateral required
# Speedy loan approval
# Service at the customer’s doorstep

There are more benefits for to existing HDFC customers like

# Special rates of interest.
# For existing Auto Loan customers with a clear repayment of 12 months or more from even any of the approved financiers of HDFC Bank, a hassle free personal loan without income documentation can be obtained.
# For existing HDFC Bank Personal Loan customer with a clear repayment of 12 months or more, personal loan can be enhanced.

HDFC Personal Loans available for the following Person :

# Salaried Individuals
# Self Employed Individuals
# Self Employed Individuals in private companies and partnership firms in manufacturing,trading or services