Insights into Insta Jumbo Loan on HDFC Bank Credit Card

By | September 29, 2016

I never wanted to get into the EMI trap in my life and i’m clear that i’ll have to pay in full at the end of each month. If i don’t, there is no point in choosing the right credit card just for saving 2% or 3% of the transaction amount. With interest rates as high as 12%-20% on credit card loans and revolving rates, i would end up in net loss even if i pick the best rewarding credit card.

Loan on Credit Card - Insta Jumbo loan HDFC

Loan on Credit Card – Insta Jumbo loan HDFC

However, my Dad is in need of money every once in a while and he don’t mind about paying the interest rates as he got used to it for quite sometime. I secured him Diners premium recently with a good credit limit that it has eye popping EMI/Loan offers on his card from time to time.

Facts about Insta Jumbo Loan:

  • Credit limit unaffected
  • Treated like a personal loan, no Service Tax on EMI

HDFC Insta Jumbo Loan Eligibility:

As i mentioned in the previous article on HDFC credit card loans, he had already taken Rs.50,000 on Smart EMI and another Rs.50,000 on Insta Loan at a nice 11.88% Annual interest rate and now Insta Jumbo Loan offer is available for his card account for 1.25 Lakhs. To my understanding, you can increase the probability for Insta Jumbo loan Offer by following below:

  • Take Smart EMI or Insta Loans
  • Payback existing SmartEMI/Insta Loan on time
  • Spend on Shopping/entertainment/travel Websites
  • Ask for Limit Enhancement, sometimes you won’t get better limit, but Jumbo loan might get enabled

My dad’s card got the Jumbo Loan offer within a month of requesting a credit limit enhancement. They increased the limit by a very small amount but Jumbo loan (amount equal to old limit) was eligible within a month of this happening. I’m unsure if this is coincidence or there is a formula behind.

Applying for HDFC Insta Jumbo Loan via Net Banking:

So coming to point, my Dad was interested in this offer as he needs some floating money. So i logged into his a/c and submitted the form for full 1.25 Lakhs @ 13.2% for 5 yrs and boom, funds credited into his savings a/c within 5 seconds. There was an OTP verification while submitting the form and nothing else.

Processing fee was waived as per the offer at that time.

It gets more interesting now. Next day i logged into his a/c to see that he’s now eligible for another 50k insta loan @ 11.88%. I’m yet to inform this to Dad 😀

Its clear that more you take HDFC EMI offers, they come up with better eligibility on other loan products at low interest rates. Yes, makes some sense.

HDFC Insta Jumbo Loan reported as Credit Card on CIBIL

HDFC Insta Jumbo Loan reported as Credit Card on CIBIL (from my friend’s CIBIL report)

Important Note: Insta Jumbo Loan has nothing to do with your credit card and it acts more like a personal loan and is linked to our savings a/c for EMI debits. It is reported as a “Credit Card” to CIBIL with your EMI amount. So any defaults on Jumbo loan will affect your CIBIL negatively.

Got any queries on HDFC Insta Jumbo Loan? Feel free to ask in comments below.

12 thoughts on “Insights into Insta Jumbo Loan on HDFC Bank Credit Card

  1. James

    One can use it creatively. Wait for the stock markets to tank. Take the loan. Invest at lower levels by buying high quality blue chip companies at discounted rates. But yes, come what may….pay the EMI’s on time and in full…duh:-) Disclaimer – You can’t use the loan for speculative purposes as mandated by the bank:-)

    Reply
  2. Sreejith Joseph

    Am planning to take an Insta Jumbo Loan of Rs.15lakhs.

    Could you please advise me whether there is any hidden charges or activities with this plan?

    Found some cheating news from the web like some medi-claim policy and all.

    Pls support

    Regards
    Sreejith

    Reply
      1. Siddharth Post author

        There may be some processing fees. No medi-claim policies. That’s generally sold with CC approval 😀

        Reply
  3. Tarun

    Will insta jumbo loan will impact my borrowing capacity in term of unsecured loans

    Reply
    1. Siddharth Post author

      Not actually. Its reported as yet another “credit card” which is better than “personal loan” in eyes of CIBIL.

      Reply
  4. Chaitanya Varma

    Sid,

    The Insta and Insta Jumbo loans or any other bank loan on credit card when applied, will the banks fetch CIBIL Report ? I mean will they go for specific hard pull CIBIL Enquiry, which brings down the score?

    Reply
    1. Siddharth Post author

      No, they don’t. They already have your updated information somehow 🙂

      Reply
  5. Theresa Ambrose

    I want to preclose my Jumbo online. How can i do it? I havr the loan account number and also got the amount which i need to pay after talking to Credit card representative. But not sure how to pay it online.

    Please help

    Reply

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