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.

47 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
  6. asha

    Hi,

    I Have taken Jumbo loan I don’t no how to pay can you please help and my bill date is on March 4th, 2017.

    Confirm.

    Thank you.

    Reply
    1. Siddharth Post author

      Talk to customer care. Usually it gets debited automatically from your linked savings a/c.

      Reply
  7. Mohammed tousif

    Hi I had taken insta jumbo loan for a period of 12 months which got cleared last month….If required again how can I apply….

    Reply
  8. pavan

    i have got offer for insta jumbo loan but i thought of applying after two weeks .sadly i do nhot know offer will be for limited period so, when i am ready for taking loan i came to know that offer has expired . Is there any process for availing again and any tips to activate again

    Reply
  9. Sanjay Diwate

    I am using HDFC credit card from last one year but I have not received any offer like Jumbo loan.
    My credit limit also very low, I want increase my credit limit.
    please advice what should I do?

    Reply
  10. Pushpreet Singh

    I am in the need of insta jumbo laon but the offer is not yet activated on my card..I have contacted hdfc several times regarding this but they are also saying that they will notify me once there is an offer..And moreover i regularly perform transactions using my credit card..even i have enabled the option for “notify me” when there is an offer on my card..i am using the card since august 2016..Even there is no option for “smart emi” and “insta loan” on my card..And i urgently required the insta jumbo loan..Please tell me what to do..

    Reply
  11. Ranjan O A

    I am planing to take a instant jumbo loan to pay as a down payment for a flat, will this effect my home loan borrowing limit?

    Reply
    1. Siddharth Post author

      Its a terrible mistake, as home loans are way cheaper.

      Reply
  12. Abheesh

    HI,
    I am planning to take a loan against equity soon,but I need cash urgently so I am planning to utilize jumbo loan offer,will it be shown as loan is cibil report ?. will it affect my eligibility ?

    Reply
  13. HANUMAN

    sir
    I take HDFC INSTA JUMBO loan . and I am a non HDFC account holder. so how to payment insta jumbo loan using sbi net banking.

    Reply
  14. Yuvraj

    Treated like a personal loan, no Service Tax on EMI??? who said? they are charging 18% GST on Interest each month. it increased interest rate to 2%. It must be treated like personal loan and hdfc should remove GST on Interest.

    Reply
      1. Rahul

        Hi Sid,

        When I enquire with the Customer Care they are saying that there is no GST on EMI interest for Insta Jumbo Loan. But the terms and conditions say that they charge GST on EMI interest. Am really confused. Took the loan 2 years back. Then I remember that there was no service tax charged. Any insights pl

        Reply
  15. Madhav

    Sir,
    I have taken Hdfc jumbo loan,but I don’t have Hdfc bank account.how to pay EMI with sbi account.

    Reply
    1. Kiran

      Hi Madhav,

      You need to pay by cash in any of the HDFC branches or drop cheque in you loan account.

      Online transfer is possible only if you have an HDFC account.

      Cheers,
      Kiran

      Reply
  16. Balaji Harikrishnan

    Can I take the second Insta Jumbo loan within the tenure of my existing Insta jumbo lian which I am going to pay the emi for the third month?
    Insta Jumbo loan available – 1.5 L
    Already I took 50k
    Now when I enter OTP for confirmation it prompts stating “Request cannot be processed now”.
    Can I expect your answer Sid ?

    Reply
  17. priya

    I brought insta loan using credit card for 35k. my daddy is planning to get housing loan in another bank. Will they consider the insta loan and will it affect of getting housing loan ?

    Reply
  18. Kashish

    Hi siddharth

    I am having an offer of 160000 insta jumbo loan and i am planning to take insta jumbo loan of 150000 for the period of 2 years and the EMI will be 7273 .i want to know it will increase or it will be same for 2years.
    Waiting for your revert.

    Thanks
    Kashish

    Reply
  19. Deepak Yadav

    How to paid Insta Jumbo Loan EMI. I did not recived insta jumbo loan card no.

    Reply
  20. NIRMAl

    Dear
    I am planning to get Instant Jumbo loan and Instant loan .Also Planning to get Housing loan from other bank.Will they consider the Insta Jumbo and Instant loan .Will Insta Jumbo loan effect to eligibility of housing loan. Will Insta jumbo loan effect /reduce my CIBIL SCORE

    Reply
  21. pranavesh

    Current interest rate for insta jambo loan ?
    I am getting near 16% + GST for 12 months jambo loan ! Also processing charge extra

    Hdfc insta jambo loan not good option to get loan

    Reply
  22. Pradeep

    hi,

    thanks for all infos & tips you’ve shared. does this tricks apply for sbi prime card with sbin savings a/c?

    Reply
  23. Shivi

    Just for reference – You’ll be paying Rs.3,461.44/- on an Insta Jumbo Loan of Rs.10,000/- for 1 year. Calculated inclusive of Rs.500/- Processing Fee and 16.2% per annum Rate of Interest.

    Reply
  24. Sriganesh

    Currently (April-2018), whether GST is there for EMI of HDFC Insta jumbo loan. In customer care they claim that there is no GST fo Insta jumbo loan. It is there for only Insta loans. Kinldy help me if GST is not there it will be a good option for me in comparison to personal loan.

    Reply
    1. Prashant

      You should ask customer care about GST, and confirm before taking loan,
      on hdfc site they have written GST For FEE & Charges / Interest transactions

      Reply
  25. Sriganesh

    In HDFC site also (Credit card EMI calculator), it shows no GST for EMI interest for jumbo loans where as for other loans like insta loan, smart EMI it shows GST..im confused..

    Reply
  26. Arth

    Siddharth

    1) HDFC charging 18% gst on interest
    2) Hdfc interest rate is 16% PA + processing fee
    If we consider above charges we have to pay 18% on loan amount means 1.5% per month extra , this is very very high interest expense ,
    This is not a good option to take loan from HDFC

    Reply
  27. mathi

    The loan once approved, it can only be pre-closed.
    In case of pre-closure of the loan, a charge, currently 3% of the balance principal outstanding plus GST will
    be applicable.
    Along with pre-closure charges, pro-rata interest applicable and credit card outstanding balance at the
    time of pre-closure have to be repaid for pre-closure of the loan.

    This was the statement given in HDFC insta loan, what is pro rata charges and how it is applicable

    Reply
  28. Prashant

    Siddharth
    You should update this blog ! there are so many changes happen

    Reply

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