Loans

What is Loans?
 A loan is when money is given to another party in exchange for repayment of the
loan principal amount plus interest.
 Loan terms are agreed to by each party before any money is advanced.
 A loan may be secured by collateral such as a mortgage or it may be unsecured such
as a credit card.
 Revolving loans or lines can be spent, repaid, and spent again, while term loans are
fixed-rate, fixed-payment loans.
Loans are advanced for a number of reasons including major purchases, investing,
renovations, debt consolidation, and business ventures. Loans also help existing companies
expand their operations. Loans allow for growth in the overall money supply in an economy
and open up competition by lending to new businesses. The interest and fees from loans are
a primary source of revenue for many banks, as well as some retailers through the use
of credit facilities and credit cards.

 loan is basically a debt that is evidenced by note specifying the interest rate, principal
amount, and the date of repayment. The loan issued must be repaid on time to the lender to
avoid further harm to any of your assets that had been kept as assurance to the lender. While
taking a loan, a borrower lends some money from the lender. These lenders may be people,
banks, corporate societies and other sources. The money is paid through installments to the
lender with some rate of interest. It is always safe to take loans from financial institutions like
banks and corporate societies as they have monetized terms and conditions and low rate of
interest as compared to other money lenders. Some of the popular loans that most of the
people go for are personal finance, leveraged loan, PIK loan, refund anticipation loan, payday
loan, syndicated loan, student loan, and title loan. Though these loans are helpful for many
people but they have some severe disadvantages.

Advantages of Bank Loans:

Bank loans offers the following advantages:

1. They can be easily procured.

2. They can be used for short-term as well as medium-term financing.

3. Interest paid on a bank loan is a tax deductible expenditure.

Features and Benefits of Loans

 There are several types of loans categorised based on various factors.

 You can choose the type of loan you wish to take based on your requirement

and eligibility.

 The lender will be the ultimate power to decide the loan amount they wish to

offer to you based on several factors, such as repayment capacity, income, and

others.

 A repayment tenure and interest rate will be associated with every loan.

 The bank may apply several fees and charges to every loan.

 Many lenders provide instant loans that take a few minutes to few hours to get

disbursed.

 The interest rate is determined by the lender based on the Reserve Bank of

India’s guidance.

 The lender determines the requirement for security.

 A third-party guarantee can be used instead of security in some cases.

 The loan repayments must be made in equated monthly instalments over the

pre-determined loan tenure.

 There may or may not be the option for full/part prepayment.

 Some loan types and lenders may levy a penalty for prepayment of loans.

Loans come with different features that can change the security of the loan, the payments on

the loan, and the interest rate of the loan. The main features include secured versus unsecured
loans, amortizing versus non-amortizing loans, and fixed-rate versus variable-rate (floating)

loans.

PERSONAL LOAN

Personal Loan is an unsecured credit provided by financial institutions based on criteria

like employment history, repayment capacity, income level, profession and credit history.

Personal Loan, which is also known as a consumer loan is a multi-purpose loan, which you

can use to meet any of your immediate needs.

What is meant by personal loan?

A personal loan is a loan that does not require collateral or security and is offered with
minimal documentation. You can use the funds from this loan for any legitimate financial
need. Like any other loan, you must repay it accordance to the agreed terms with the bank

 FEATURES OF PERSONAL LOAN

 Get a personal loan in quick time:- Personal loan disbursal can sometimes happen

within a few hours, once the application is approved. Turnaround times can also be as

short as a few minutes if you can avail of a pre-approved loan offer.

 Protect yourself with insurance:- The personal loan amount that gets disbursed is

based on an individual’s repayment history, monthly income, age, profession,

employer reputation, and other such factors. Lenders offer personal loans of the

amount as low as Rs. 10,000 to as high as Rs. 40 lakhs.

 Personal Loan for your every need:- Personal loans can be used for multiple purposes,

such as to meet expenses of a medical emergency, travel, house renovation, debt

consolidation, etc.
  Personal Loans usually come with flexible tenure ranging from 12 months to 60

months.

 Minimal Documentation
Personal loans can be applied for online and even offline with minimal documentation. Key
documents that lenders generally need the applicant to provide include a proof of identity, a
proof of address and proof of income.

 ELIGIBILITY CRITERIA

 The following people are eligible to apply for a Personal Loan:

 Employees of private limited companies, employees from public sector undertakings,

including central, state and local bodies

 Individuals between 21 and 60 years of age

 Individuals who have had a job for at least 2 years, with a minimum of 1 year with the

current employer

 Those who earn a minimum of 25,000 net income per month

What are the Documents Required for a Personal Loan?

Most banks and NBFCs have similar guidelines with regard to the documents required for
personal loans. Here is a generic list of such documents.
 Identity Proof – PAN Card/ Voter’s ID/ Aadhaar Card/ Passport/ Driving License
 Address Proof – Bank Account Statement/ Aadhaar Card/ Lease/ Property purchase
Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License
 Income Proof – For Salaried Individuals: Salary Slip/ Bank Account Statement/ Form
16. For Self Employed: Previous Year ITR/ P&L Statement and Balance Sheet/ Bank
Account Statement
 Business Proof – Certificate of Practice/ Partnership Deed/ GST Registration and
Filing Documents/ MOA & AOA/ Shop Act License

What are the Documents Required for a Personal Loan?

Most banks and NBFCs have similar guidelines with regard to the documents required for
personal loans. Here is a generic list of such documents.
 Identity Proof – PAN Card/ Voter’s ID/ Aadhaar Card/ Passport/ Driving License
  Address Proof – Bank Account Statement/ Aadhaar Card/ Lease/ Property purchase
Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License
 Income Proof – For Salaried Individuals: Salary Slip/ Bank Account Statement/ Form
16. For Self Employed: Previous Year ITR/ P&L Statement and Balance Sheet/ Bank
Account Statement
 Business Proof – Certificate of Practice/ Partnership Deed/ GST Registration and
Filing Documents/ MOA & AOA/ Shop Act License

What are the Documents Required for a Personal Loan?

Most banks and NBFCs have similar guidelines with regard to the documents required for
personal loans. Here is a generic list of such documents.
 Identity Proof – PAN Card/ Voter’s ID/ Aadhaar Card/ Passport/ Driving License
 Address Proof – Bank Account Statement/ Aadhaar Card/ Lease/ Property purchase
Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License
 Income Proof – For Salaried Individuals: Salary Slip/ Bank Account Statement/ Form
16. For Self Employed: Previous Year ITR/ P&L Statement and Balance Sheet/ Bank
Account Statement
 Business Proof – Certificate of Practice/ Partnership Deed/ GST Registration and
Filing Documents/ MOA & AOA/ Shop Act License

What are the Documents Required for a Personal Loan?

Most banks and NBFCs have similar guidelines with regard to the documents required for
personal loans. Here is a generic list of such documents.
 Identity Proof – PAN Card/ Voter’s ID/ Aadhaar Card/ Passport/ Driving License
 Address Proof – Bank Account Statement/ Aadhaar Card/ Lease/ Property purchase
Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License
 Income Proof – For Salaried Individuals: Salary Slip/ Bank Account Statement/ Form
16. For Self Employed: Previous Year ITR/ P&L Statement and Balance Sheet/ Bank
Account Statement
 Business Proof – Certificate of Practice/ Partnership Deed/ GST Registration and
Filing Documents/ MOA & AOA/ Shop Act License

What are the Documents Required for a Personal Loan?

Most banks and NBFCs have similar guidelines with regard to the documents required for
personal loans. Here is a generic list of such documents.
 Identity Proof – PAN Card/ Voter’s ID/ Aadhaar Card/ Passport/ Driving License
 Address Proof – Bank Account Statement/ Aadhaar Card/ Lease/ Property purchase
Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License
 Income Proof – For Salaried Individuals: Salary Slip/ Bank Account Statement/ Form
16. For Self Employed: Previous Year ITR/ P&L Statement and Balance Sheet/ Bank
Account Statement
 Business Proof – Certificate of Practice/ Partnership Deed/ GST Registration and
Filing Documents/ MOA & AOA/ Shop Act License

INTEREST
HOME LOAN

FEATURES

1)variety of Loan Options

Home Loan: Home loans for individuals to purchase (fresh/resale) or construct houses.
Application can be made individually or jointly.
Home Improvement Loan (HIL): The interiors of any home reflect the personal preferences
and tastes of its owners making it imperative to constantly upgrade to keep up with changing
times. HIL facilitates internal and external repairs and other structural improvements like
Painting, Waterproofing and Roofing, Plumbing and Electrical Works, Tiling and Flooring,
Grills, Aluminium Windows, Compound Walls and much more.
Home Extension Loan (HEL): HEL for adding more space to your existing home for
meeting the requirements of your growing family. Be it an extra bedroom for your children, a
reading room for yourself or a cosy coffee corner. It is easy to extend your home anyway you
like.
*Conditions apply. All Home Loans from HDFC Ltd. Credit at sole discretion of HDFC Ltd

Automated Repayment of EMIs

You can give us standing instructions to repay your Home Loan EMIs directly from HDFC
Bank Savings Account, thus, saving you the trouble of procuring, signing and tracking post-
dated cheques.
Different Offerings for Different People

HDFC offers specially designed Home Loans for:

 Agriculturists
 Planters
 Horticulturists
 Dairy Farmers
Special Home Loan Scheme for Agriculturists

 Loans for farmers to buy or construct houses/apartments in several of cities/towns

of their choice
 Home loans in residential areas of villages
 Loan eligibility on the basis of agricultural land owned and the kind of crops being
cultivated by farmers
 No mortgage of agricultural land required for the purpose of home loans
 No mandatory requirement of Income Tax Returns from farmers applying for
home loans
Rural Housing Finance for Salaried and Self Employed

 Home Loans for Government & Private Sector Employees for rural properties in
residential areas
 Home Loans for Businessmen, Traders etc. who are filing Income Tax Returns for
the last three years for properties in rural residential areas
 Home Loans for NRIs also in rural residential areas
BUSINESS LOANS

With our Business Loan, continue to stay ahead of your competitors , scale your business in a

hassle free environment. Take it to new heights with additional financial help from HDFC

Bank. We are here to support you at every step of the way because in you we trust. We curate

our Business Loan with competitive interest rates, flexible tenures and minimal

documentation to meet your every business need. An additional attractive feature of the

Business Loan is the access to an overdraft facility, that is you pay interest only on the

utilised loan amount together with a credit protection plan.

FEATURES

Fulfil Your Every Need

Avail of a loan up to Rs. 40 lakhs (up to Rs. 50 lakhs in select locations) without
any collateral (Collateral is a necessary element that a recipient has to keep with him to get a
loan. Securities can also be used as collateral.), guarantor (A guarantor is a person who
guarantees payment by another. A guarantor becomes a co-endorser and assumes liability in
event of default.) or security, to fulfil your every business need, from business expansion and
working capital, to your child's education or a home renovation.
Transfer Loan Balance with Ease

Transfer your existing Business Loan to HDFC Bank for lower EMIs, and enjoy our benefits
 Interest rates as low as 15.75%* on the existing loan transfer
 Processing fee as low as 0.99%
To transfer your loan balance, apply now.
Dropline Overdraft Facility

It provides Overdraft facility without any security. Limit is set in separate Current account
which drops monthly till end of the tenure. Pay the interest only on the amount utilized.
 Dropline Overdraft Facility up to Rs.5 Lac - 15 Lac*
 No Guarantor (A guarantor is a person who guarantees payment by another. A
guarantor becomes a co-endorser and assumes liability in event of default.)/
Security required.
  Tenure ranging from 12-48 months.
 Attractive Rate of Interest
 No Foreclosure / part Closure shall be permitted during the first 6 months of the
limit setting.
Quick Eligibility Check & Disbursal

Check your Business Loan eligibility online or at any branch in just 60 seconds. Loans will
be disbursed based on previous repayment of home loans, auto loans and credit cards.
Flexible Tenure

You can repay your loan over a period of 12 to 48 months.

Convenient Borrowing

For any help with your loan, you can reach out to us via SMS, Webchat, Click2Talk
and PhoneBanking.
EDUCATIONAL LOAN

 An education loan is a sum of money borrowed to finance post-secondary education

or higher education-related expenses.
 Education loans are intended to cover the cost of tuition, books and supplies, and
living expenses while the borrower is in the process of pursuing a degree.
 Payments are often deferred while students are in college and, depending on the
lender, sometimes they are deferred for an additional six-month period after earning
a degree.
 Although there are a variety of education loans, they can be broken down generally
into two basic types: federal loans sponsored by the federal government and private
loans.
FEATURES
 Accountability of transactions:- Get up to ₹ 30 lakhs as an education loan
Avail loans of up to ₹ 7.5 lakh without collateral

 Study Loan insurance facility available:-

 Lower rate of interest for loan:- Get preferential rates for top ranked colleges and
universities
 Higher education loan tenure:- Loan repayment tenor up-to 15 years 
“Moratorium” shall mean (1) Course Period + 1 year or 6 months after getting Job,
whichever is earlier; (2) as stipulated by Bank (as mentioned in the Schedule Cum
Key Fact sheet) . 
“Principal Moratorium” shall mean a Moratorium granted only for repayment of the
principal amount of the Loan. 
“Interest Moratorium” shall mean a Moratorium granted for repayment of the
principal 
amount of the Loan as well as payment of the interest payable on the Loan. 

 Extra features like part-payment, health cover, etc.

 Interest Rate subsidies and tax rebates:- Save on taxes with a rebate on the interest
you pay on an education loan under Section 80-E of the Income Tax Act 1961

ELIGIBILITY
Indian resident, between 16 and 35 years of age
Co-applicant is mandatory for all full-time programs – co-applicant could be parent/guardian,
or spouse/parent in law
Student should have secured admission to a higher education course in recognized institutions
in India or Abroad through Entrance Test/ Merit Based Selection process 
Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by
recognized colleges/ universities recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR
etc. 

PROCESS FOR APPLYING EDUCATIONAL LOAN

Application Process
1 Fill up

Online Application Form

 
 2 HDFC Credila Visit &

Submit Supporting Documents

 
3 Final Review,

Approval, Money
Transfered to Your Bank
HDFC Credila has a student friendly education loan application process:
 Student: To complete HDFC Credila's online Education Loan Application Forms
 HDFC Credila: To follow–up with the student & parents to answer questions
 HDFC Credila: Representative visits your house & collects signed application form
with the supporting documents
 Student: To provide a completed Education Loan Application form with all the
required supporting documents
( Note: Students can apply to HDFC Credila for Education Loan even before
confirmed admission )
 HDFC Credila: Credit team to review & underwrite the Education Loan application
 HDFC Credila: To approve the education loan or ask for any additional information
required
 Student: To complete the education loan disbursement formalities by signing the
education loan agreement
 HDFC Credila: The education loan amount is deposited in the required bank account
electronically

GOLD LOAN

FEATURES

Gold Loan Offering

Term Loan, OD and Bullet repayment available

Gold Loan Interest

HDFC Bank Gold Loan comes with competitive interest rates on Term Loan, Overdraft and EMI
based loan. Repay your loan in easy lower EMIs, over a tenor of your choice.
Gold Loan Tenure
Gold Loans is available for tenures starting from 3 months up to 24 months.

Gold Loan Repayment

Repay only the interest on the loan every month

Enjoy monthly outflow as low as ₹ 1,000 per lakh (based on an indicative rate of 12% pa)
Repay the interest and principal after 1 year in case of bullet repayment
Gold Loan Processing

Fastest Turnournd
Enjoy simple documentation and speedy disbursals
Pay no hidden charges and experience a completely transparent process

My gold loan was disbursed super quick - in 45 minutes

Gold Loan Amount

Get loans starting at ₹ 25,000 (Minimum loan amount of ₹ 10000/- available in rural markets)

ome of the distinguishing features of HDFC Sampoorna Bharosa Gold Loan are
highlighted below.
 Multipurpose loan – Loan amount can be used to meet any genuine financial
requirement.
 Quick approval – Minimal documentation results in quick approval, minus any
hassles and delays.
 Loan amount – Individuals can avail loan amounts which suit their needs, with
HDFC Bank open to consider loan amounts on a case by case basis.
 Prepayment – Borrowers can prepay the loan, without worrying about
excessive prepayment charges.
 Competitive interest rates – Interest charged by HDFC Bank on this gold loan
scheme is highly competitive, with special rates offered under certain
circumstances.
 Transparent – There are no hidden charges, with transparency maintained at
all stages.
 Safety – The collateral pledged by individuals is kept safe, with a 3 tier sealing
system in place.
 Low processing fee - Borrowers are charged a minimal processing fee, keeping
general trends and competition in mind.
  Flexible repayment –The loan can be repaid through flexible EMIs, with
borrowers having an option to choose a tenure which suits their repayment
need

Eligibility criteria to avail HDFC Gold Loan

Individuals who wish to avail this gold loan need to satisfy a few basic criteria.
 Income – Applicants should have sufficient income to repay the loan amount.
 Security – Applicants can avail this loan only on providing security in the form of gold.
Documents required for HDFC Gold Loan
HDFC has minimised the documentation process for this loan offering, with a single
page procedure in place. The following documents need to be submitted in order to
process an application.
 Valid ID proof – Valid government approved ID proof (PAN card, Passport, DL, etc.)
 Valid address proof – Valid government approved address proof (utility bill, passport,
Aadhar card, ration card, etc.)
 Application form – Duly filled and signed application form
HDFC Bank might ask for any other documents it feels are necessary to complete
application formalities.