HDFC Customer Privileges
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.*
Illustration: Rs. 1 Lac loan on @10.75% with processing Fees for 60 Months comes to Rs. 1,29,708/- Equated Monthly Instalment shall be: Rs. 2,162/- only.
APR* - Annual Percentage Rate