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CIBIL Score for HDFC Personal Loan

There are various factors that affect the applicant's’ eligibility for a HDFC bank personal loan. HDFC prefers to give loans to those who are capable of repaying the loan and who do not default on making the payments. This capability is reflected in your CIBIL score and certain other factors. Read on to understand the relevance of CIBIL and other factors for your HDFC personal loan application.

  • Home: A personal loan from HDFC is more effectively disbursed to those who live in metro cities. Additionally, those who have their own home get preference over those living in a rented flat. As those who have their own home will not have an additional financial burden of paying the rent. He will also have a higher disposable income.
  • Monthly Income: The income level of an individual depicts your timely re-payment capability for loans. It is along this criterion that the total amount of loan given to you is decided. Higher incomes raise the possibility of getting a larger loan amount.
  • Applicant’s Age: The applicant’s age at the time of loan application matters. When the applicant is really young, banks tend to assume job instability as a major concern and hence higher possibility of loan rejection.
  • Job Nature: Compared to salaried individuals, self-employed applicant have lower chances of loan approval.
  • Employment History: The longer your job history with each of your employer the higher will the chances of a loan approval. Long work histories denote income stability and good repayment capability.

Importance of CIBIL score for getting HDFC bank personal loan

  • Upon a loan application with HDFC Bank, a credit check is done on the applicant.
  • It takes a CIBIL score of 750 plus before HDFC will proceed with your loan application and take it to the credit report analysis stage.
  • HDFC takes note of the credits previously availed by the applicant.
  • Re-payment efficiency is also noted by the bank and so is the mixture of unsecured and secure loans availed by the applicant previously.
  • Kindly note that a loan availed in the situation of dire need and on bank’s terms will be noted in the CIBIL report for 6 years.
  • Similarly, the settlement on previous credits is seen negatively by the banks and will reflect in your report for some time to come.

HDFC Personal Loan Information

HDFC bank personal loan department understands your decision for availing a personal loan. As one of the best personal loan providers, HDFC personal loans are designed and packaged carefully with excellent features.

No matter what your purpose of the personal loan application, the procedure is swift, hassle-free and asks for minimum documents. The applicant can check eligibility in 60 seconds, and quickly apply for the loan online and get disbursal within 4 hours of loan approval. Also, existing HDFC bank clients can get lower interest rates and loan funds in their accounts for pre-approved loans within 10-15 seconds. Above all the applicants can protect themselves against any un-fateful event by choosing the accident and illness cover at very less premiums or avail specialised scheme that covers the remaining principal amount of your loan.

Probable Reasons for HDFC Bank Personal Loan Rejection

  • Bad Credit History: You have to ensure timely repayments of all EMIs. Raise CIBIL score and avoid loan settlements.
  • Non-Prepayment: Remember that when you repay all the EMIs on a loan which does not have many EMIs remaining, then the possibility of a higher disposable income become visible to banks. Hence. higher are the chances of getting approval for a new loan.
  • Incorrect secured-unsecured credit mix: Secured loans are positively seen by the banks as compared to unsecured loans. Therefore, go for the right mix of credit when taking loans, throughout your life.
  • You applied for many loans: Don’t apply for loan at dozens of institutions with the hope of getting lucky. This does not fare well for your credit report.
  • Multiple credit cards: Multiple credit cards don’t go well for your credit report either.

Tips for improving CIBIL score to get HDFC bank Personal Loan

  • Timely Payments : Good CIBIL scores are based on the cornerstone of timely repayments of the existing credits. A move that will help make you timely payments is the selection of the ECS facility for various loan EMI repayments. A 5-day window from the due date is the ideal time period for a loan EMI re-payment.
  • Don’t Display Credit Hunger : It is good if you have less credit cards. Having too many credit cards, and changing them frequently does not fare well for your credit report. Too many and too frequent applications can project you as a credit hungry person. A Credit Inquiry is raised every time an application is made which sends a negative signal for lending institutions about your credit profile. In such cases institutions who are extending loans might raise Interest Rates, Fees or EMI to secure their loan.
  • Make Responsible Use of Credit Cards : Credit Cards negatively impact your CIBIL score. If you use your credit card carelessly, then you should re-think. A monthly utility of maximum 40% is what is ideally required you of your credit limit. In case it is really important that you use your credit card, then use a different one beyond 40% utility on the first card.
  • Mix Secured & Un-Secured Credits : Note that a secured loan will do good for the CIBIL score. This is because the asset invested into will appreciate in value over a time period. On the other hand un-secured credits are bad for your CIBIL Score.
  • Credit Worthiness : Remember that regularity in payments reflects as credibility on your CIBIL Score. This means that a worthy history of credit repayment is the credit worthiness itself. A score of 750 is where credit worthiness begins and peaks at 800.

FAQs on CIBIL score for HDFC Personal Loan

What are the personal loan rates of HDFC bank ?

The personal loan rates for HDFC bank range between 15.00% - 20.99 %

What if I have a low CIBIL score, will HDFC bank still give me a personal loan?

Having a poor credit rating is going to hurt your personal loan eligibility with HDFC bank.

Does skipping HDFC bank personal loan payment affect my CIBIL score?

Yes, it negatively impacts your CIBIL score.

I’ve had a loan settlement with HDFC bank, will it affect my CIBIL score?

Yes. It feasible for an applicant to attain multiple loans and also raise the credit limit on a card or re-finance a loan. All of this is subject to your previous repayments and current CIBIL score.