The idea of obtaining credit through credit cards is becoming more and more common in the Indian market, and HDFC Bank has launched the HDFC Jumbo Loan, its own take on the concept.
There is no paperwork needed when applying for this loan because the bank already has all the necessary information about the applicant because the KYC procedures have been completed. Since the bank has access to the cardholder’s credit history, the loan amount is determined by that information, making it a pre-approved loan.
Given that the terms and characteristics of this credit offer are the same, it can be regarded as the most recent iteration of a personal loan. Instead, because the applicant only has to pay interest and incurs no other costs like processing fees, this type of loan is more affordable for them.
HDFC’s Jumbo Loan is a game-changer for borrowers seeking substantial sums exceeding their credit card limits This innovative loan allows you to tap into a higher credit line without sacrificing the flexibility of your existing card. Let’s dive deep into the world of HDFC Jumbo Loans and explore how they can empower your financial journey.
Jumbo Loan: Unlocking a World of Possibilities
The HDFC Jumbo Loan is a secured loan that leverages your credit card as collateral enabling you to borrow amounts beyond your card’s limit. This means you can access larger funds for various purposes such as:
- Home renovation or purchase: Realize your dream home or give your existing space a much-needed makeover.
- Debt consolidation: Streamline your finances by consolidating multiple debts into one manageable loan with potentially lower interest rates.
- Medical emergencies: Cover unexpected medical expenses without dipping into your savings or relying on high-interest loans.
- Education expenses: Invest in your or your loved ones’ education without compromising your financial stability.
- Business expansion: Fuel your entrepreneurial ventures with the necessary capital to take your business to the next level.
Key Features of the HDFC Jumbo Loan:
- Higher credit limit: Access a loan amount that surpasses your credit card limit, providing you with greater financial flexibility.
- No impact on credit card limit: Your credit card limit remains untouched, allowing you to continue using your card for everyday expenses.
- Competitive interest rates: Enjoy attractive interest rates compared to other loan options, potentially saving you money in the long run.
- Flexible repayment options: Choose a repayment tenure that aligns with your financial situation and comfort level.
- Quick and convenient: Apply for the loan online or through your HDFC Bank app, and experience a hassle-free approval process.
Understanding the Two Variants of HDFC Jumbo Loans:
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Instant Loan: This type of loan lets you get money right away as long as you stay within your credit card limit. Although the loan amount is blocked from going against your limit, you can still use the remaining credit to make normal card purchases.
-
Jumbo Loan: With this option, you can borrow more money than the maximum amount on your credit card. You have complete access to both your credit card and the loan funds because the loan amount is not blocked against your limit.
Eligibility Criteria for HDFC Jumbo Loans:
- You must be an existing HDFC Bank credit cardholder with a good credit history.
- Your credit card limit should be at least ₹50,000.
- You should meet the bank’s income and employment criteria.
Applying for an HDFC Jumbo Loan:
Applying for an HDFC Jumbo Loan is a straightforward process:
- Visit the HDFC Bank website or mobile app.
- Navigate to the “Loans” section and select “Jumbo Loan.”
- Fill out the online application form with your personal and financial details.
- Submit the application and await the bank’s decision.
Frequently Asked Questions (FAQs):
Q: How is the interest rate on a Jumbo Loan determined?
A: The interest rate depends on your creditworthiness, loan amount, and repayment tenure. The bank will provide you with a personalized interest rate quote upon application.
Q: What are the repayment options available for Jumbo Loans?
A: Depending on your preferences and the amount of the loan, you have a choice of flexible repayment options that range from 12 to 60 months.
Q: Can I prepay my Jumbo Loan?
A: Yes, you can prepay your Jumbo Loan without any penalty charges.
Q: What happens if I default on my Jumbo Loan payments?
A: Defaulting on your loan payments may attract penalties and impact your credit score. It’s crucial to maintain timely repayments to avoid any adverse consequences.
HDFC Jumbo Loans offer a unique and convenient way to access substantial funds without compromising your credit card limit. Whether you’re planning a home renovation, consolidating debt, or pursuing other financial goals, this loan can be a valuable tool in your financial arsenal. By understanding the features, eligibility criteria, and application process, you can make an informed decision and leverage the power of the HDFC Jumbo Loan to achieve your financial aspirations.
Types of Loans Offered by the HDFC Bank on Credit Cards
1. Instant Loan: The credit limit for this kind of loan is always less than the credit limit on the credit card, and the feature will be disabled if it rises above that amount.
2. Jumbo Loan: With this type of loan, the credit limit is either the same as or greater than the credit limit, and the feature remains active even after the credit limit has been reached.
Jumbo Loan And Insta Loan
Our ratings take into account a products rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
12 to 60 months
Starting With 1.25% a Month
12 to 60 months
Starting With 1.25% a Month Pros & Cons
- No processing fee.
- No paperwork (KYC-related formalities).
- No branch visit required.
- Interest rates are more or less similar to personal loans.
- Very instantaneous than any other loan in the market.
- Having a credit card is a mandate.
- Preclosure charges not declared.
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