Availing personal loan upto 40 lakh

[learningrewardgame]

Hi Everyone,

I wanted to seek advise from expert members of the forum on advise and what all precautions to take while availing a Personal loan --

1) I have talked with HDFC (10.85) and Axis (10.85) rate of interest, playing negotiation here.
2) Foreclosure post 12 months any time.
3) HDFC has told me if i prepay more than monthly EMI it will attract charges and is the norm with Personal loan. This sounded like a new info to me and hence i wanted to confirm if this True? In car, home loan we can pay more than EMI so it reduces EMI and ultimately net interest paid. (Yet to discuss this with Axis Bank)
4) Any other banks that are better in this business?
5) I tried to talk on Infinia with PL but they told max is DCB Black they can provide. I believe Axis is more interested than HDFC here also.
6) Loan Insurance -- they say unemployment clause is removed where 3-6 EMIs were waived earlier, need help here also. HDFC is also not letting go of PF charges
7) If loan is disbursed between 21st  to 6th day of the month there will be pre-EMI interest charges and the EMI will be start from 2nd month from the loan disbursal date as the personal loan EMI date is 7th day of every month.-- Need help understanding this.

Thankyou, looking forward for some help and discussion on this. Also the PSU Banks charge more interest rates than private, this is something i discovered in my search.

 

[NAB]

1. You are getting a decent rate so no more bargains would be possible. PL starts @ 10.5 for most banks.
2. There may be some precloser charges for the PL, you can negotiate on this part. They have a provision to waive it.
3. You can try ICICI as well, if you already have a relationship with them, otherwise is no need.
4. You can ask them to give you full calculations, from the amount which will be credited to you with/without deductions. And all the EMIs and charges month by month in an email.
5. HDFC doesn't levy GST on the interest, not sure about the Axis, you can clarify the same once with both banks.
6. Don't know about CC negotiation along with PL. Take whatever they are offering right now.
7. HDFC is rigid about the PF charges, still, you can try.

 

[learningrewardgame]

1. You are getting a decent rate so no more bargains would be possible. PL starts @ 10.5 for most banks.
2. There may be some precloser charges for the PL, you can negotiate on this part. They have a provision to waive it.
3. You can try ICICI as well, if you already have a relationship with them, otherwise is no need.
4. You can ask them to give you full calculations, from the amount which will be credited to you with/without deductions. And all the EMIs and charges month by month in an email.
5. HDFC doesn't levy GST on the interest, not sure about the Axis, you can clarify the same once with both banks.
6. Don't know about CC negotiation along with PL. Take whatever they are offering right now.
7. HDFC is rigid about the PF charges, still, you can try.

Thankyou so much for your detailed response, appreciate it.

On Point #3 in my query , do you mean to say if i have an EMI of let's say 1L per month and i pay 1.5L that month, basically paying more than EMI, it will attract charges and is the same across Personal Loan category.

Basically, query is HDFC person told me you can not pay more than your EMI amount and if you do charges will be levied, i wanted to confirm if this is a norm or they are hiding something. My motive was to keep paying some more amount than EMIs whenever affordable so as to have less Interest to pay overall and reducing EMIs.

#5, thanks this i had not considered, will clarify with both and take it in writing.

 

[Vasuki]

Hi Everyone,

I wanted to seek advise from expert members of the forum on advise and what all precautions to take while availing a Personal loan --

1) I have talked with HDFC (10.85) and Axis (10.85) rate of interest, playing negotiation here.
2) Foreclosure post 12 months any time.
3) HDFC has told me if i prepay more than monthly EMI it will attract charges and is the norm with Personal loan. This sounded like a new info to me and hence i wanted to confirm if this True? In car, home loan we can pay more than EMI so it reduces EMI and ultimately net interest paid. (Yet to discuss this with Axis Bank)
4) Any other banks that are better in this business?
5) I tried to talk on Infinia with PL but they told max is DCB Black they can provide. I believe Axis is more interested than HDFC here also.
6) Loan Insurance -- they say unemployment clause is removed where 3-6 EMIs were waived earlier, need help here also. HDFC is also not letting go of PF charges
7) If loan is disbursed between 21st  to 6th day of the month there will be pre-EMI interest charges and the EMI will be start from 2nd month from the loan disbursal date as the personal loan EMI date is 7th day of every month.-- Need help understanding this.

Thankyou, looking forward for some help and discussion on this. Also the PSU Banks charge more interest rates than private, this is something i discovered in my search.

Go with axis
You can pre pay with axis app anytime with axis account
Hdfc loan system is trash

 

[NAB]

Thankyou so much for your detailed response, appreciate it.

On Point # 3 , do you mean to say if i have an EMI of let's say 1L per month and i pay 1.5L that month, basically paying more than EMI, it will attract charges and is the same across Personal Loan category.

Basically, query is HDFC person told me you can not pay more than your EMI amount and if you do charges will be levied, i wanted to confirm if this is a norm or they are hiding something.

Yes, they will penalize you with the discussed % for the prepayment of that extra 50K.
We can rather say it's their policy. Not a compulsory norm. They do many times waive it after some lock-in period. You can try negotiating it.

 

[learningrewardgame]

Yes, they will penalize you with the discussed % for the prepayment of that extra 50K.
We can rather say it's their policy. Not a compulsory norm. They do many times waive it after some lock-in period. You can try negotiating it.

Understood, i will have a quotation from Axis bank and then negotiate this with HDFC and tell them this is a deal breaker for me and we need to keep some sort of levy here either lock in period of 6 months or something else.
They offered me 25% part payment after 12 months and then another one in 3rd year. Basically 2 party payments in tenure.

Go with axis
You can pre pay with axis app anytime with axis account
Hdfc loan system is trash

@Vasuki Leaning towards Axis myself, will take these things in writing in mail tomorrow once.

 

[2025]

Thankyou so much for your detailed response, appreciate it.

On Point #3 in my query , do you mean to say if i have an EMI of let's say 1L per month and i pay 1.5L that month, basically paying more than EMI, it will attract charges and is the same across Personal Loan category.

Basically, query is HDFC person told me you can not pay more than your EMI amount and if you do charges will be levied, i wanted to confirm if this is a norm or they are hiding something. My motive was to keep paying some more amount than EMIs whenever affordable so as to have less Interest to pay overall and reducing EMIs.

#5, thanks this i had not considered, will clarify with both and take it in writing.

U can negotiate on this as the amount is 40L. They sometimes accept such requests for loan amount above 10L only.
For HDFC PL below 10L they charge pre-payment penalty 4%, 3%, and 2% based on when you are making the payment after first 12 months. The payment amount is upto 25% of outstanding and once in a FY. You also have to take approval and visit branch for making pre-payment. Very rigid process.
Interest rate is ok at current scenario. Have an enquiry in ICICI also before finalizing. Yes, rates in PSUs for PL is usually higher.

 

[learningrewardgame]

U can negotiate on this as the amount is 40L. They sometimes accept such requests for loan amount above 10L only.
For HDFC PL below 10L they charge pre-payment penalty 4%, 3%, and 2% based on when you are making the payment after first 12 months. The payment amount is upto 25% of outstanding and once in a FY. You also have to take approval and visit branch for making pre-payment. Very rigid process.
Interest rate is ok at current scenario. Have an enquiry in ICICI also before finalizing. Yes, rates in PSUs for PL is usually higher.

Thankyou for sharing this, i have made a note of this as well and will inform the same to them.
Yes, ICICI is the only one which i have not enquired as no existing relation with them, so i will do a visit tomorrow there.

 

[NAB]

Thankyou for sharing this, i have made a note of this as well and will inform the same to them.
Yes, ICICI is the only one which i have not enquired as no existing relation with them, so i will do a visit tomorrow there.

ICICI levies 18% GST on the Interest amount, so think about that as well before any conclusions.

 

[learningrewardgame]

ICICI levies 18% GST on the Interest amount, so think about that as well before any conclusions.

Ah sure, that is why they offer lowest Interest rates.
Can you pls tell me on what amount GST is charged?

For example- Interest per month or on Total interest they will charge 18% GST?
That is something a loss making case for me, even if Axis or HDFC says the same.

 

[2025]

ICICI levies 18% GST on the Interest amount, so think about that as well before any conclusions.

First time hearing about GST on interest amount on a personal loan. Please reconfirm.

Op is not taking PL on CC.

 

[learningrewardgame]

Hey Everyone,

Need one more advise, process has moved forward --

Axis and HDFC both are asking for consent to share OTP for Cibil hit, however HDFC POC told me that wait for me to get back with all TnC and don't do a CIBIL hit as it will show in records and also drop your cibil by 5-10%. Is he creating unnecessary fear or is it a valid point.

Axis says without Cibil hit we can not provide you ROI and TnC and say their TnC is governed by sanction letter.
HDFC is quite open and ready to give everything on mail with ifs and buts. Hdfc guy also said Axis will not give you anything on mail and be as open transparent as we are (which i find myself to be True)

My current Cibil is 790

 

[learningrewardgame]

First time hearing about GST on interest amount on a personal loan. Please reconfirm.

Op is not taking PL on CC.

On this i also checked with both Axis and HDFC, no mention of GST on anything except Processing Fees.