I need urgent funds and I have an HDFC Life Sanchay Plus policy. Should I take a loan against my policy or go for a personal loan in 2025? Which one will actually be cheaper?
In 2025, people often compare loans against HDFC Life Sanchay Plus policies with personal loans from banks or NBFCs. Both provide quick access to funds, but they differ in eligibility, interest rates, approval process, and repayment flexibility. Understanding these differences can help policyholders decide which option is more cost-effective.
credits : HDFC Life Sanchay Plus
Interest Rate on HDFC Sanchay Plus Loan in 2025
My colleague took a loan against his Sanchay Plus policy. The insurer offered a fixed rate of interest, which was lower than the rates of most personal loans. Since the loan was secured against the policy’s surrender value, it didn’t depend on credit score or income proof, making it more affordable and predictable.
Interest Rate on Personal Loan in 2025
My friend applied for a personal loan from a private bank. The rate he got was much higher, as personal loan interest in 2025 typically ranges from 11% to 20%. His credit score played a big role in the final rate, and the EMIs turned out to be heavier compared to what he would have paid if he had borrowed against his Sanchay Plus policy.
Loan Approval Process – HDFC Sanchay Plus vs Personal Loan
A colleague who applied for a loan against Sanchay Plus found the process quick and simple. He just submitted the policy documents and ID proof, and the loan was credited within a few working days.
In comparison, my friend applying for a personal loan had to go through credit checks, income verification, and detailed paperwork before approval. The process took longer and was less convenient.
Repayment Flexibility – HDFC Sanchay Plus Policy Loan vs Personal Loan
My colleague who borrowed against his Sanchay Plus policy appreciated the repayment flexibility. The outstanding loan and interest could even be adjusted against the policy’s surrender or maturity value if required.
On the other hand, my friend with a personal loan faced strict EMI schedules. Any delay resulted in penalties and extra charges, making repayment more rigid.
Which Loan is Cheaper in 2025, HDFC Sanchay Plus Policy Loan or Personal Loan?
Based on these comparisons, a loan against HDFC Life Sanchay Plus is usually cheaper due to its lower fixed interest rates and flexible repayment options. Personal loans may still be suitable for those who need a larger amount beyond their policy’s surrender value, but for most average financial needs, borrowing against Sanchay Plus turns out to be more cost-effective.
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