Personal Loan Features & Benefits

Whatever the occasion, our range of Personal Loans can help. The procedure is simple,

documentation is minimal and approval is quick.

 Borrow up to Rs 15, 00,000 for any purpose depending on your requirements.

 Flexible Repayment options, ranging from 12 to 60 months.

 Repay with easy EMIs.

 One of the lowest interest rates.

 Hassle free loans - No guarantor/security/collateral required.

 Speedy loan approval.

 Convenience of service at your doorstep.

 Customer privileges

 If you are an HDFC Bank salary account holder, we have a special offer for you.

 If you are an existing Auto Loan or Home Loan customer with a clear repayment of 6

months or more from any of our approved financiers or us, you can get a hassle free

personal loan (without income documentation).

 If you are an existing HDFC Bank Personal Loan customer with a clear repayment of

9 months or more, we can Top-Up your personal loan.

In case of death or total permanent disability of the loanee, the loanee/nominee can avail of

the Payment Protection Insurance (Credit Shield) which insures the principle outstanding on

the loan up to a maximum of the loan amount. Principle outstanding is defined as the amount

of loan outstanding (not including any arrears in payment or interest thereon) at the Date of

Loss, having accounted for payments made and interest accruing as determined in the Policy.

Hence, the amount covered does not include any principal added because of non - payment of

EMI and also will not include interest/ accrued charges.*

 Personal Accident Cover

In order to ensure that your family is taken care of we also offer a Personal Accident cover of

Rs.2, 00,000 at a nominal premium.*

(*Premium will be charged for both these products which will be deducted from the loan

amount at the time of disbursal .A transaction fee of Rs.750 will also be deducted at the time

of disbursal. Please note that service tax @ 10% and Education cess of 3% will also be

charged.)
Eligibility and Documentation

I. Salaried Individuals include Salaried Doctors, CAs, employees of select Public and

Private limited companies, Government Sector employees including public sector

undertakings and central, state and local bodies:

Eligibility Criteria

 Minimum age of Applicant: 21 years

 Maximum age of Applicant at loan maturity: 60 years

 Minimum employment: Minimum 2 years in employment and minimum 1 year in the

current organization

 Minimum Net Monthly Income: Rs. 10,000 per month (Rs. 15,000 in Mumbai, Delhi,

Bangalore, Chennai and Hyderabad & Rs. 12,000 in Calcutta, Ahmedabad and

Cochin)

Documents required

 Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)

 Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade

licence /Est./Sales Tax certificate)

 Bank Statements (latest 3 months bank statement / 6 months bank passbook)

 Latest salary slip or current dated salary certificate with latest Form 16

II. Self employed (Professionals) include self - employed Doctors, Chartered

Accountants, Engineers, MBA Consultants, Architects, and Company Secretaries.

 Minimum age of Applicant: 25 years

 Maximum age of Applicant at loan maturity: 65 years

 Years in business: 4 to 7 years depending on profession

 Minimum Annual Income: Rs. 100000 p.a.

Documents required

 Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence).

 Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade

licence /Est./Sales Tax certificate).

 Bank Statements(latest 6 months bank statement /passbook)

 Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.

certified by a CA

 Qualification proof of the highest professional degree.

III. Self Employed (Individuals) include self-employed - Sole proprietors, Partners &

Directors in the Business of Manufacturing, Trading or Services.

Eligibility Criteria

 Minimum age of Applicant: 21 years

 Maximum age of Applicant at loan maturity: 65 years

 Years in business: Minimum of 3yrs in current business 5 yrs total business

experience
  Minimum Annual Income: Rs. 100000 p.a.

Documents required

 Proof of Identity (Passport Copy/ Voters ID card/ Driving License)

 Address Proof (Ration card Tel/elect. Bill/ Passport copy/Trade license /Est./Sales

Tax certificate)

 Bank Statements(latest 6 months bank statement /passbook)

 Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.

certified by a CA

 Proof of continuation (Trade license /Establishment /Sales Tax certificate)

 Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed,

Cert. Copy of MOA, AOA & Board resolution.)

IV. Self Employed (Pvt. Cos and Partnership Firms) include Private Companies and

Partnership firms in the Business of Manufacturing, Trading or Services

Eligibility Criteria

 Years in business: Minimum of 3 years in current business and 5 years total business

experience

 Business must be profit making for the last 2 years

 Minimum Annual Income: Rs 100000 p.a.

Documents required:

 Address Proof (Ration card Tel/elect. Bill / Passport copy/Trade license /Est./Sales

Tax certificate)

 Bank Statements(latest 6 months bank statement /passbook)

certified by a CA

 Proof of continuation (Trade license /Establishment /Sales Tax certificate)

 Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed,

Certified true copy of Memorandum & Articles of Association (certified by Director)

& Board resolution (Original).)

FEES AND CHARGES FOR PERSONAL LOAN

DESCRIPTION OF
PERSONAL LOAN
CHARGES
Loan processing charges Upto 2.50% of the loan amount subject to a minimum
Prepayment Salaried- no pre-payment permitted until repayment
Salaried - 4% of the Principal Outstanding after
repayment of 12 EMIs
Pre-payment charges
Self-employed - 4% of the Principal Outstanding
after repayment of 6 EMIs
No due certificate/No objection
NIL
certificate(NOC)
Duplicate no due
Rs 250/-
certificate(NOC)
Solvency Certificate Not applicable
Charges for late payment of EMI @24%p.a on amount outstanding from date of default
Charges for changing from fixed Not applicable
to floating rate of interest
Charges for changing from Not applicable
floating to fixed rate of interest
Stamp duty and other statutory As per applicable laws of the state
charges
Credit assessment charges Not applicable
Non standard repayment charges Not applicable
Cheque swapping charges Rs. 500/- per event
Loan re-booking/re-scheduling Rs. 1000/-
charges
Loan cancellation charges Rs 1000/-
Cheque bounce charges Rs. 450/- per cheque bounce
1.3 PROBLEMS OF THE ORGANIZATION

 Fewer locations as compared with PNB and ICICI Bank

 Some gaps in range for certain sectors.

 High interest rate as compared to some other banks.

 Customer service staff needs training.

 Some customers feel that the interest rates of HDFC are comparatively higher than
some other Banks.

1.4 COMPETITION INFORMATION

 Canara Bank

Canara Bank has a can-do attitude about banking in India. One of India's largest banks,
Canara Bank (also known as CanBank) has a network of more than 2,500 branches
throughout India and branches in Hong Kong and London. All of Canara Bank's branches --
including those located in rural areas -- are computerized, in a country where it is not given
that banks can make such a claim. (The bank considers 30% of its branches to be located in
rural areas.) The modernization of all branches allows the bank to offer its customers
networked ATMs, telebanking, internet banking, and debit card services. Other services
include asset management and factoring. The financial institution is 73% owned by India's
government.

 ICICI Bank

ICICI Bank is India's No.2 bank (after State Bank of India), with some 950 branches and
3,300 ATMs nationwide. It also has locations in nearly 20 other countries. ICICI's retail
banking group offers lending and deposit services to small businesses and individuals. Larger
businesses are served by the corporate banking group, which offers finance services and
treasury products. ICICI's rural and government banking unit offers micro-loans and
agricultural banking. Foreign operations, as well as services related to international trade
finance and expatriate Indians, fall under the international banking group. Other ICICI
offerings include online banking, asset management, and insurance.

 State Bank of India

State Bank of India is the nation's largest bank. Tracing its roots back some 200 years to the
British East India Company (and initially established as the Bank of Calcutta in 1806), the
bank operates more than 14,000 branches within India, where it also owns majority stakes in
seven associate banks. State Bank of India has more than 50 offices in nearly 35 other
countries, including multiple locations in the US, Canada, and Nigeria. The bank has other
units devoted to capital markets, fund management, factoring and commercial services, and
brokerage services. The Reserve Bank of India owns about 60% of State Bank of India.

1.5 SWOT ANALYSIS

Business firms undertake SWOT analysis to understand the external and internal
environment. SWOT, which is the acronym for Strength, Weakness, Opportunities and
Threats, is also known as WOT-UP Analysis. Through such an analysis strength and
weakness existing within an organization can be matched with the opportunities and threats
operating the environment so that an effective strategy can be formulated. An effective
organization strategy, therefore, is one that is capitalized on the opportunities and through the
use of strengths and neutralizes the threats maximizing the impact of weakness.

Strengths:

 Great Brand Image.

 High degree of customer Satisfaction.

 Well-Covered Market in Delhi.

 Lower response time with efficient and effective service.

 Dedicated workforce.

 Products have acquired accreditations.

Weaknesses:

 Fewer locations as compared with PNB and ICICI Bank

 Some gaps in range for certain sectors.

 High interest rate as compared to some other banks.

 Customer service staff needs training.

Opportunities:

 Advantage of large network over other banks.

 Opportunity to pitch in for National and International convenience.

 Special rates of interest can be offered during exhibitions.

 Product life cycle is to be reviewed.

Threats:

 People’s need for change.

 High competition prevailing in the industry.

 Innovative schemes from other players.