Ways to Increase Your HDFC Personal Loan Tenure?

Personal Loans have become a way of life these days. Whether you need to purchase something urgently; have a medical emergency, or planning a trip abroad; Personal Loans come as a handy resource of funds. The convenience of instant loan application along with the flexibility of repayment terms makes Personal Loans one of the most reliable credit products.

HDFC Personal Loan is one of the most sought after Personal Loans in the market. It offers most competitive interest rates, least processing fees, minimal prepayment and foreclosure charges, and no hidden charges whatsoever. Besides, HDFC Bank also provides flexible payment options to customers and many other facilities to make their association easier with the bank.

Hence, HDFC Personal Loan is one of the best bets for smart consumers who compare aggressively and believe in borrowing the best deal. The bank believes in offering customized deals according to consumer needs. You get enough flexibility to choose the loan amount, tenure, and EMI.
Here in this article, we will find out how a pre-existing HDFC Personal Loan consumer can increase the loan tenure.

Ask your bank for increasing the tenure: Yes, you can ask your bank to increase the loan tenure after the term is started. You are required to submit a written application at the HDFC branch your loan is running and request the bank to increase your loan tenure.

There are some factors that the bank will consider first before considering your request. They will compare your current income versus the outflow of funds in loan repayments and EMIs; if they find that your Debt to Income ratio is really high, which means that your EMIs outflow is more than 50% of your net monthly income, then they would approve your request so that the burden of EMI amount reduces. However, if you are nearing your retirement age, then the probability of increasing the tenure goes down as the bank would not increase your tenure after a certain age. So, various factors will determine if the request for tenure is approved or not.

Balance Transfer your Personal Loan: This is another option that you can choose in case you are hard pressed by your monthly EMIs. Many people choose this option of consolidating their Personal Loan and other dues so as to transfer the combined balance to other bank. And while you are doing that, you can opt for a higher loan tenure as against the earlier one as per your repayment capacity. Typically HDFC Personal Loan offers Loan tenure around 3 to 5 years. However, you can increase the term on request.

One thing you need to remember and keep in mind is that increase in tenure for EMI reduction is just a temporary solution to your financial issues and not a permanent one as the increase in loan tenure is directly proportionate to the total loan repayment amount. If you increase the tenure, your loan repayment amount will also increase as interest is being charged for the increased tenure as well; only your EMI will reduce, but interest outgo will increase. This is something you need to ponder over.

For this calculation, the Debt-to-Income Ratio comes into play. If you see that your total monthly liabilities are adding up to more than 60% of your total monthly net income, then you should revisit your loan options and look at reducing the EMIs by either paying off the loans faster or by increasing the loan tenure so that the EMIs amount decreases.

Taking a Personal Loan is very easy these days. But you need to be careful while you do that to ensure that you do not end up adding another EMI burden on yourself in the bargain. Hence evaluate everything before you opt for increased tenure. Factor in everything, from your current income, your existing liabilities and EMIs per month, your probability of getting a salary hike and your age as well before you make the request.

After considering all these factors, you should request for increased loan tenure. You should not end up regretting later for your decision. You can also use a Personal Loan EMI calculator to understand your total EMI payments for that loan.