- HDFC Insta Jumbo Loan EMI - A gift for HDFC credit cardholders with Zero Documentation & Instant Approval!
- What is the loan interest rate & how can you repay it? Read this post to know the same!
One of the many reasons behind HDFC Bank maintaining high customer loyalty is its ability to offer value-added services to its existing clients. As a part of its strategy to enhance customer engagement, HDFC Bank offers you an Insta Jumbo Loan facility for the remarkable repayment track you show for any of its credit cards. So, if you have maintained a good repayment track of HDFC credit card, don’t be surprised to bag away an Insta Jumbo Loan from the private biggie. It’s a pre-approved loan above the credit card limit. But how will you make the loan payment given that it is offered to you based on your credit card? Let’s read all that and more in this post.
How Will the Insta Jumbo Loan EMI Appear to You?
An Insta Jumbo Loan will have an Equated Monthly Installment (EMI) constituting both principal and interest portions payable over the loan tenure. You’ll be offered a new card statement for the Insta Jumbo Loan Account. The interest portion of the EMI will also have a Goods and Services Tax (GST) levied over the same. You can pay the loan dues on or before the due date using the HDFC net banking. You can even visit the nearest HDFC branch to pay the bill via cash, cheque or even demand draft.
How Much Loan Can You Get?
You’ll get the loan above your credit card limit as stated above. That does not mean your credit card limit will be blocked. The actual loan quantum, however, depends on your income, repayment capacity and credit score. Greater income boosts your repayment potentials, enhancing the scope for higher loan disbursals. And when these two get the aid of a good credit score, a higher loan amount becomes more of a formality.
What Will be the Rate of Interest?
The rate of interest on the jumbo loan will depend on your repayment history, credit score, etc. If you talk about HDFC personal loan rates, they can be anywhere from 10.75% - 14.50%. Look to negotiate for lower rates for a comfortable and cost-effective loan experience.
What is the Maximum Time by Which You’ve to Repay Your Insta Jumbo Loan EMI?
You’ll be given a maximum of 5 years to repay the loan. If you wish to prepay the loan before the original tenure, you can do so anytime after the payment of the first 12 EMIs.
Do You Need to Submit Documents to Access an Insta Jumbo Loan?
No, you don’t need to, as HDFC Bank must have got your KYC and income documents by the time you had applied for the credit card.
How Should You Approach Your Credit Card Shopping Post the Loan Disbursal?
This will become even more important for you as the number of credits is enhanced with an Insta Jumbo Loan. The addition of credits increases your obligations considerably. Using the Insta Jumbo Loan EMI calculator can let you know the EMI, whose principal and interest portions will be shown on the statement, in advance. This is like your fixed obligation and which will greatly determine the spendings you could afford on your credit card. Ensure your overall credit outgo doesn’t go past 60% of your net monthly income. So, shop with discretion and pay both the bills on or before time.
Revolving Credit on Credit Cards Lets You Get Away with Less Payment Every Month, But Shall You Do It?
HDFC credit cards come with a revolving credit facility, meaning you can do away with the full payment of the total outstanding as may be the case in a billing cycle. You can pay the minimum due, which constitutes around 5% of the outstanding balance in a billing cycle, or an amount above it but below the total due without any late payment charges. But what will happen then is the piling of interest on the unpaid balance at an astonishing rate of 30%-40% per annum. With credit card debt increasing month after month owing to partial payments, there may come a point you could struggle to pay even the minimum due. Keeping in mind the potential perils of revolving credit, you should shop carefully so that you can pay the total outstanding on a credit card and the loan EMI without any problem and delay.
How Will the HDFC Insta Jumbo Loan EMI Impact Your Credit Score?
Having multiple credits can add a lot to your credit history and credit score, provided you pay all your dues on or before the stipulated time. The discipline shown in handling multiple debts can lead to a rise in your credit score. On the other side, if you struggle to demonstrate a timely payment record, the score could fall and adversely affect your credit history, raising doubts over your future credit aspirations.