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Accidentally took instant loan instead of jumbo loan on HDFC credit card

ank_sh1

TF Premier
Hello members,
I had this pre-approved loan offer limit of 2.6L on my HDFC Diners Privilege Credit Card. I had multiple pre-approved loan offers from other providers as well. I did require some funds for some personal use and decided to take it from HDFC as it had the lowest processing fee of 499 compared to others of 2.5% of the loan amount. I knew that HDFC had two types of loans one was a Jumbo Instant Loan that wouldn't block the credit limit whereas another was a normal instant loan that would block the credit limit. When clicking on the link on my email from HDFC bank, it navigated me to a page (https://applyonline.hdfcbank.com/loan-against-assets/insta-jumbo-loan/insta-jumbo-form.html#nbb) which had insta-jumbo-loan in the URL, thus I assumed it to be Jumbo loan that wouldn't block my credit limit. But to my surprise, after taking the loan for a tenure of 60 months, it just blocked most of my credit limit i.e. 2.6L out of 3.5L. Since this card is my daily driver, I don't have any usable limit left, second thing, my credit utilisation is going to be >80% and third is that I am stuck for 5 years with this credit block.

I am not sure what to do in this position as I cannot pre-close the loan because of a decent amount of pre-closure charges and also the fact that I have already used that fund somewhere. Any recommendations or any possibilities of converting this Insta Loan to a Jumbo Loan? If I'd been aware that this was an Insta Loan and blocked my credit limit, I would never have taken it.

Thanks for your suggestion in advance.
 
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No they won't convert an Insta Loan to a Jumbo one.
I don't think there is any other way than to pre close.

Call the phonebanking customer care and ask for any possibilities.

You should've seen the page after entering your mobile number, on the top left corner it would be written clearly as Insta Loan or Insta Jumbo Loan.
You should've also checked the key facts statement (KFS) which opens up once you click on proceed after selecting the amount and tenure.
As you've provided authentication OTP after ticking on I agree, now you are at mercy of HDFC Bank.
 
You can cancel this loan and return the funds within 14v days of disbursal without any penalty. You just have to arrange the spent funds immediately so it can be returned.

What's your current cibil score and at what ROI have they sanctioned the loan?
 
You can cancel this loan and return the funds within 14v days of disbursal without any penalty. You just have to arrange the spent funds immediately so it can be returned.

What's your current cibil score and at what ROI have they sanctioned the loan?
Please quote your source
 
You can cancel this loan and return the funds within 14v days of disbursal without any penalty. You just have to arrange the spent funds immediately so it can be returned.

What's your current cibil score and at what ROI have they sanctioned the loan?
As per T&C written in the Insta Loan section of the website. It's clearly written that Insta Loan cannot be cancelled.
I have attached the screenshot of the same for your reference.
 

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Nothing was mentioned on the login page, I guess its because of the new UI. I saw some older YouTube video and they had that mentioned on the page itself. Also on the new UI, there is no KFS popup, at least didn't show up on my desktop. After selecting tenure, it just sent an otp and the amount was transferred to my account.

To answer akshayhs, My Cibil is 776 & ROI on the loan that I took was 17.28% Reducing rate.

I tried connecting to customer care this evening but was on IVR for atleast 15-20 minutes so just declined it. I will try again tomorrow and post any updates in this forum.
The request I am planning to make if they don't cancel the loan is to at least increase the credit limit to ~7L so that my utilisation will be ~30-40%. I have heard that the limit they give is 3 times of Monthly salary and with that calculation, they can provide a limit of up to 5.5L. Still, I will try my luck here.
The last option would be to pay the pre-closure fee of 3%.
 
I tried connecting to customer care this evening but was on IVR for atleast 15-20 minutes so just declined it. I will try again tomorrow and post any updates in this forum.
The request I am planning to make if they don't cancel the loan is to at least increase the credit limit to ~7L so that my utilisation will be ~30-40%. I have heard that the limit they give is 3 times of Monthly salary and with that calculation, they can provide a limit of up to 5.5L. Still, I will try my luck here.
The last option would be to pay the pre-closure fee of 3%.
Yes please do post any updates.
All the best brother. Hope you get it.
 
Seems like a very tricky situation here.

Better option would be to apply for a new credit card and use it.

If the jumbo loan offer is still available, you may go for it and then manage your finances accordingly.

Other than that, there is an option in sbi cards (if you have one) to transfer your existing credit card outstanding to sbi cards and set it off (at a cheaper interest rate).

Thanks!!
 
I did try my best here and contacted Customer Care & my Preferred Account RM (he is very active and helps me most of the time) as well.
Customer care clearly mentioned that if the fund was not utilised and was still there in the account there could be a possibility of cancellation approval, but I have already utilised the fund. I offered that I would put back the amount back in the account but she still denied saying that it cannot be done that way and foreclosure is the only option available.
The second thing that I tried exploring was to reduce the tenure from 60 months to 12 months, but she denied that as well. The third option was asking to increase my credit limit from 3.5L to 5-7L so that my credit card would be usable, as my credit card limit has remained unchanged for the last 1.5 years. To my surprise we don't have any option to apply this online, we will have to go to the bank or parcel a form to the Chennai branch office.

RM has told me that the chances of loan cancellation are pretty low, but credit limit enhancement is something he can help with. Hope I get some solutions.
 
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I did try my best here and contacted Customer Care & my Preferred Account RM (he is very active and helps me most of the time) as well.
Customer care clearly mentioned that if the fund was not utilised and was still there in the account there could be a possibility of cancellation approval, but I have already utilised the fund. I offered that I would put back the amount back in the account but she still denied saying that it cannot be done that way and foreclosure is the only option available.
The second thing that I tried exploring was to reduce the tenure from 60 months to 12 months, but she denied that as well. The third option was asking to increase my credit limit from 3.5L to 5-7L so that my credit card would be usable, as my credit card limit has remained unchanged for the last 1.5 years. To my surprise we don't have any option to apply this online, we will have to go to the bank or parcel a form to the Chennai branch office.

RM has told me that the chances of loan cancellation are pretty low, but credit limit enhancement is something he can help with. Hope I get some solutions.

Also, we can merge this here (https://www.technofino.in/community...tead-of-jumbo-loan-on-hdfc-credit-card.19115/), It's my bad that first I posted in credit card forum but later thought that this should be in the loan forum
Well you don't have any other option than to hope for a LE.
All the best.
 
Seems like a very tricky situation here.

Better option would be to apply for a new credit card and use it.

If the jumbo loan offer is still available, you may go for it and then manage your finances accordingly.

Other than that, there is an option in sbi cards (if you have one) to transfer your existing credit card outstanding to sbi cards and set it off (at a cheaper interest rate).

Thanks!!
I think I should do the same, and start using my other cards now. The Jumbo offer is gone so no option here. SBI card has a very less limit (1/3 of the HDFC limit) and I don't think a credit loan could be transferred to another card, but I will surely explore this option for sure.

i beleive there is a 7 day cooldown period where you can cancel the loan without any charges
contact customer care
Yes, bro, they said this could have been possible only if I had not utilised the fund and the same fund was still available in my bank account, but since I have utilised it and realised this after 5-6 hour after utilising the fund this would not be possible.

Well you don't have any other option than to hope for a LE.
All the best.
Yeah, bro, I believe LE is the only option left here. Also, another option that I tried, I had asked for a partial payment, and even that is not allowed in Loan from Credit card.

TBH I really liked this card and I won't be able to use it anymore. Any card recommendation to replicate my HDFC Diners Privilege credit card?
I already have SBI Prime, BOB Premier, Axis Kwik & Kotak 811.
 
Yes, bro, they said this could have been possible only if I had not utilised the fund and the same fund was still available in my bank account, but since I have utilised it and realised this after 5-6 hour after utilising the fund this would not be possible.
How would they know if you utilised the fund or not.
It gets credited into your normal balance. After that it would be impossible to segregate if a transaction was done from own fund or loan fund, it's not like they give you a separate account.

In my honest opinion, these are all excuses. If they could've cancelled they would've cancelled it.
Terms and conditions don't change on case to case basis unless you know some higher management people.

Yeah, bro, I believe LE is the only option left here. Also, another option that I tried, I had asked for a partial payment, and even that is not allowed in Loan from Credit card.

TBH I really liked this card and I won't be able to use it anymore. Any card recommendation to replicate my HDFC Diners Privilege credit card?
I already have SBI Prime, BOB Premier, Axis Kwik & Kotak 811.
I would say apply for an IndusInd Legend LTF card from their website.

They will give credit limit same as your highest limit credit card and its approval rate is very high.

That's my best recommendation for your case.
 
Yes, bro, they said this could have been possible only if I had not utilised the fund and the same fund was still available in my bank account, but since I have utilised it and realised this after 5-6 hour after utilising the fund this would not be possible.
you tell them that you had just moved it to your other account and threaten them to go to rbi if they dont agree to close the loan
 
How would they know if you utilised the fund or not.
It gets credited into your normal balance. After that it would be impossible to segregate if a transaction was done from own fund or loan fund, it's not like they give you a separate account.

In my honest opinion, these are all excuses. If they could've cancelled they would've cancelled it.
Terms and conditions don't change on case to case basis unless you know some higher management people.

Even that was a surprising thing to me. I believe this is because it was disbursed to my HDFC account itself, where all my credit card, loans & bank accounts are under the same Customer ID. She was able to check it. I will try again this afternoon to call customer care and request speaking to a senior representative.
 
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