With the introduction of Insta Loan and other products, taking a quick loan on your Hdfc Credit Card is damn easy. Hdfc has made the approval process super simple that if you have a pre-qualified offer, you can get the loan amount into your account in matter of seconds, no documentation required.
There are different variants of loan. Let me explain them in detail as bank doesn’t make it clear for unknown reasons.
HDFC Insta Loan
If eligible, you can get Insta Loan (aka Cash on Call) on your credit card in matter of minutes through net banking. The given loan amount will be blocked against your credit limit and you can pay the loan in flexible tenures as EMI.
Things to note:
1. Credit limit gets reduced
2. Service tax is applicable on the interest you pay
3. Can be availed only twice at a time (more than 2 for select users)
HDFC Insta Jumbo loan
It is similar to Insta loan but your credit limit doesn’t get blocked in this case. This loan will be billed separately with Auto Debit enabled to your linked savings ac and not charged on your credit card statement.
As far as i can understand, Insta Jumbo Loan is a kind of “Personal Loan” given to you on basis of credit card usage.
Things to note:
1. Credit limit unaffected
2. Can be availed only once at a time (more than 1 for select users)
Related: Need more details on HDFC Insta Jumbo Loan? check out Insights into Insta Jumbo Loan.
HDFC Smart EMI
You can convert your credit card expenses into EMI. You can convert one txn or many at a time. Process is quick and easy through net banking.
Things to note:
1. Can be availed multiple times
2. Available to most cards
My Personal Experience
You can also choose smart EMI or insta loan based on your spending type. Note that only Smart EMI has lowest EMI period: 3 months.
At times, Hdfc runs offers wherein you can get loan @ 11.88% (annually) with processing fee waived off. It’s super cheap and you can never get such interest rates with unsecured loans. My dad was once lucky enough to get Insta Loan for 50k INR during the offer period. His credit limit was 1L at that time.
Check your net banking once in a while to see if there are any offers on your credit card.
Interest Rates & Other Charges
HDFC used to have the lowest interest rates in the market on credit card loan/EMI than any other bank. But everything changed recently. Each account has different interest rates and here’s what you could expect:
- Lowest Interest: 13% p.a.
- Medium: 15% p.a. (currently most accounts are in this range)
- Highest interest: 19% p.a.
Apart from interest rates, note that you also need to pay 3% foreclosure charges if you decide to close before the EMI ends.
If you’re looking for Credit card EMI, American Express has the best interest rates with no foreclosure charges. Have a look at it here: Amex Credit Cards have the Lowest Interest Rates on EMI
Apart from the interest rates, note that the eligible loan amount varies from customer to customer and depends on Hdfc internal policies.
I’ve spent a lot on my credit card but I never got any loan offers. But my dad spends too less on his credit card but got a good offer and he availed. Though we both have different cards with different spend types. Looks like the card variant and the customer profile matters to bank.
Still struggling to get eligibility for SmartEMI/Insta Loan/Insta Jumbo loan? check out How to Enable HDFC Credit Card Loan offers with my latest article 🙂
Have you availed any Credit card loans earlier? Share your comments below.