HDFC Bank offers the "Loan on Credit Card" to its eligible credit card holders with the traditional loan application process. These customers get instant access to cash to fulfill their immediate financial needs.
What is an HDFC Credit Card Loan?
An HDFC Credit Card Loan is a pre-approved loan offered to select HDFC Bank credit cardholders, allowing them to borrow funds based on their credit card usage, repayment history, and creditworthiness. Unlike traditional personal loans, these loans require no collateral or extensive documentation, making them ideal for quick access to funds. HDFC offers three main types of credit card loans, each tailored to different needs:
Insta Loan: This loan is provided within your credit limit. It reduces your spending limit as much as you loan against it. This loan is perfect if you have small and immediate cash needs.
Insta Jumbo Loan: Under this loan scheme, cardholders can even get a loan for up to ₹10 lakh. It does not impact your credit limit.
SmartEMI: This is not a loan but a feature that allows the cardholders to convert specific purchases or outstanding balances into affordable EMIs. Electronics, travel, groceries, or insurance are eligible for SmartEMI.
These loans are disbursed instantly to HDFC savings account holders (in 1 second) or within 7 days for non-account holders via NEFT/demand draft.
Eligibility for HDFC Credit Card Loan
To be eligible for HDFC's Credit Card Loan, you are required to have a:
Active HDFC Credit Card: The loan applicant must have an active HDFC credit card with a consistent repayment history.
Good Credit Score: A credit score of more than 750 is preferred because it showcases your high creditworthiness.
Stable Grown Transaction History: Regular, timely payments on your credit card can enhance your chances of credit card loan approval.
Stable Income: A stable income source is good for loan approval.
Pre-Approved Status: Loans are pre-approved for select cardholders based on HDFC's criteria.
Reach out to HDFC customer care at 1860 266 6161 or visit the bank’s website to enter your card details and mobile number to check your eligibility.
How to Apply for an HDFC Credit Card Loan
The HDFC credit card loans have a very simple and straightforward application process. Use any of the below-mentioned methods:
Phone Banking:
Call 1860 266 6161 and request a loan application.
Provide your 16-digit credit card number and registered mobile number.
Verify with an OTP and select the loan amount and tenure.
HDFC Website:
Visit www.hdfcbank.com, go to the "Credit Cards" section, and select "Get a Loan with Credit Card."
Enter your mobile number and the last four digits of your credit card.
Check your eligibility, choose the loan amount, and click on submit.
Mobile Banking App:
Log in to the HDFC Mobile Banking app, go to "Credit Cards," and select "Insta Loan" or "Insta Jumbo Loan."
Follow the instructions to apply and confirm with OTP.
Branch Visit:
Visit an HDFC branch with your credit card details and identity proof (e.g., PAN, Aadhaar).
Request a loan application and complete the process with a bank officer.
The bank does not require any documentation from customers because HDFC Credit Card Loans are pre-approved credit card loans. They are only provided to select HDFC Bank Credit Cardholders.
Benefits of HDFC Credit Card Loan
HDFC Credit Card Loans offer several advantages:
Zero Documentation: These loans are pre-approved, so no hassle of submitting paperwork or documents.
Instant Disbursal: Funds are credited within seconds into the HDFC savings account. They can take up to 7 days for others via NEFT/demand draft.
Flexible Tenure: Repayment period ranges from 6 to 60 months. Which makes them very affordable.
Competitive Rates: HDFC charges an interest rate of 1.25% per month(lower than standard credit card rates).
No Collateral: These unsecured loans are provided based on credit history, so no collateral is needed.
Multiple Loan Options: Cardholders with HDFC savings accounts can avail multiple loans.
Interest Rates and Charges
Interest rates for HDFC Credit Card Loans start at 1.25% per month (approximately 15% annually). It varies based on the loan amount, credit score, and loan type. The bank also charges the following additional charges:
Processing Fees: Up to ₹999, excluding GST.
Late Payment Fees: Charged if you fail to pay even after the grace period.
Pre-closure Charges: There are very minimal or no charges for early repayment.
Repayment Process
Cardholders can make repayments via easy monthly EMIs. they are automatically added to your credit card statement. You can pay via:
Auto-Pay: Set up auto-pay from your HDFC savings account.
NetBanking/Mobile App: You can also pay manually via HDFC's online platforms.
UPI/Other Methods: Use apps like Paytm or visit the branch in person to make payments.
Comparison Between HDFC Credit Card Loan and Personal Loan
Criteria
Credit Card Loan
Personal Loan
Interest Rate
1.25% per month onwards
10.5%-24% per annum
Documentation
None for pre-approved loans
Requires income proof, KYC documents
Disbursal Time
1 second (HDFC accounts); up to 7 days
1-7 days
Loan Amount
Up to ₹10 lakh (Jumbo Loan)
Up to ₹40 lakh
Tenure
6-60 months
12-60 months
Eligibility
Pre-approved for select cardholders
Based on income, credit score
Credit card loans are faster to get and require less paperwork in comparison to personal loans
Conclusion
HDFC Credit Card Loans offer a fast, hassle-free way to access funds for urgent or planned expenses. They require almost zero documentation and come with a flexible tenure of 6 to 60 months. You can choose any of Insta Loan, Insta Jumbo Loan, or SmartEMI, which suits your financial needs.
