HDFC bank takes its standing as a customer favorite seriously and series of additional features and benefits. The bank and is always on the forefront of innovation and simplification of traditional banking practices. No wonder, HDFC bank has emerged as an overwhelming favorite amongst the Indian populace, even though it isn’t as old as some of the other goliaths in the intensely competitive landscape of Indian banking. HDFC Home Loan are offered per the following conditions:
- For purchase of new homes
- For purchase of resale homes
- For constructing new homes and/or purchase of property
- Transfer of home loan from another lender onto HDFC
Latest Updates on HDFC Home Loan Interest Rate
HDFC Raises Home Loan Rates For The First Time Since 2013
India’s largest mortgage lender, Housing Development Finance Corporation (HDFC) has raised the home loan rates for the first time since December 2013. HDFC has hiked its lending rates by up to 20 basis points (bps), effective April 1, 2018. With the revision in lending rates, the mortgage rates for loans above Rs.30 lakh have been raised by up to 20 bps, while those loans below Rs.30 lakh, including priority sector loans, have been hiked by 5 bps. With the hike in lending rates, the mortgage rates for home loan up to Rs.30 lakh currently stands at 8.45% p.a. compared to 8.40% p.a. previously charged. Rates for home loans ranging between Rs.30 lakh and Rs.75 lakh stands at 8.60% p.a. compared to 8.40% p.a., while rates for home loans above Rs.75 lakh now stands at 8.70% p.a. compared to 8.50% p.a.. Women borrowers will get a rebate of 5 bps on all the above slabs.
MCLR Rate Reduced By HDFC Bank By 5 basis points
The MCLR (marginal cost of funds based lending rate) offered by HDFC bank with their home loans have been brought down by 5 basis points.
- One year the marginal cost of funds based lending rate offered by HDFC now stands at 8.10%.
- The six-month rate offered by HDFC stands at 7.90%.
- The new rate of interest are effective from 7th November.
Additionally, the bank offers the following types of home loans , based predominantly on the type of audience targeted:
| Home Loan Type | Target Audience |
|---|---|
| Home Loan for Salaried and Self-Employed | Professionals who are self-employed and salaried, non-professional self-employed people. |
| HDFC Pre-Approved Loan Scheme | For those looking to negotiate better with their sellers or mark their own financial credibility. |
| HDFC NRI Home Loan | Non-resident Indians willing to purchase a property in India. |
| HDFC Home Loan Transfer | For those looking to shift from existing exorbitant interest rates and costly EMIs over to HDFC’s advantage in this regard. |
| Home Improvement Loan (HIL) | Looking to upgrade home/property by making structural improvements, painting, and waterproofing, roofing and internal, external repairs. |
| Home Extension Loan | Addition of extra rooms to an existing home, or similar modifications. |
| HDFC Special Home Loan for Agriculturists | For farmers to buy property in residential areas of villages. No mortgage of agricultural land is required. |
| HDFC Rural Housing Finance | This loan is extended to private sector and government employees for properties in rural residential areas. |
Expounded in this document are reasons why you must look out for the HDFC home loan option, its various features and benefits, criteria adding up to the HDFC home loan eligibility, the latest interest rates and other such vital details. Read on…
Features and Benefits of HDFC Housing Loan:
The following pointers elevate HDFC housing loan to the top of its class:
- Comprehensive loans for the purchase of flats, apartments, independent house, housing properties from private developers in suitably approved projects, properties from public sector development companies like BDA (Bangalore Development Authority) etc.
- Competitive, attractive and affordable interest rates.
- Innovative customized product offerings including home extension loans, home improvement loans, etc.
- Customer friendly repayment options including flexible repayment tenure of upto 30 years.
- Zero hidden charges and complete transparency with regards to the application, approval and repayment stages.
- Simplified loan processing with door-step service. Also, legal and technical assistance available to help you evaluate your requirements better and make the correct choice.
- The vast network of bank branches and additional resources to ensure countrywide availability and servicing.
- Special offers for NRI, farmers, agriculturalists, horticulturalists, people employed with the Indian Army etc.
HDFC Home Loan Eligibility:
Prospective borrowers must satisfy the following criteria to be deemed eligible for the home loan from HDFC Bank:
- Housing loans can be applied for individually or jointly with a co-applicant(s).
- Every proposed owner of the property is counted as a co-applicant. However, all co-applicants are not deemed as co-owners. Ideally, co-applicants are immediate family members.
- HDFC Housing Loan is offered to salaried and Self-Employed individuals. The proposed borrower must possess all relevant documents to prove this status.
- HDFC NRI Home Loan, naturally, are offered to certify Non-Resident Indians. It is imperative that the proposed applicant prove his/her status as an NRI.
- HDFC Rural Home Loans are offered to farmers, agriculturalists, horticulturalists, dairy farmers, etc.
HDFC Bank, in its individual capacity, may require additional proof and qualifications to consider you eligible for a home loan. Kindly consult your nearest HDFC Bank for the same.
Documents Required for HDFC Home Loan:
In order to avail the HDFC Bank Housing Loan, a prospective borrower must supply the following documents that confirm his/her identity, address, occupation, salary and other such vital details. A detailed list of documents are as follows:
| Requirement | Requisite Documents |
|---|---|
| Identity and address proof | Voter’s ID, Aadhaar Card, Passport, Driving Licence, PAN Card. |
| Income proof | Last 6 months bank statement with clear attribution to monthly salary credits, Last 3 months salary slips, Latest Form-16 and IT returns. |
| Additional documents | Employment contract, Appointment letter (applies only if the current employment is less than a year old), Cheque to effect payment of the processing fee, Passport sized photographs of applicant and co-applicants (this must be suitably appended to the application form and said applicant/co-applicants must sign across the same), Bank statement for the last 6 months to ascertain payments for other ongoing loan repayments in this duration. |
| Documents relating to property | Copies of buyer agreement or allotment letter (whatever the case may be), Receipts of payments made to the developer. |
HDFC Home Loan Essentials for Salaried Individuals
Home loans offered by HDFC Bank can be applied for either jointly or individually. Proposed property owners will have to be the co-applicants. But all co-applicants do not necessarily have to be co-owners as well. In most cases, co-applicants of the loan would generally be close family members. The maximum period for repayment of the loan (general) is 20 years while the
Maximum Period for Repayment of Loan (Telescopic Repayment Option) is 30 years.
HDFC Home Loan Essentials for Self-Employed
Anyone can apply for a home loan either individually or with a co-applicant. The same rules apply for Home Loans sanctioned to self-employed individuals where co-applicants do not have to necessarily be co-owners as well. In most cases, co-applicants of the loan would generally be close family members.
Types of Home Loan for Salaried Individuals and Self-Employed Individuals
- TruFixed Home Loan: A customer is offered two choices which are a part adjustable rate term and a part fixed rate term. TruFixed Home Loan can be availed for a maximum term of 2/3 years where the rate will be fixed after which the loan will automatically get converted into an adjustable rate for a total term of 20 years.
- Adjustable Rate Home Loan: This is a type of loan where the Home Loan falls under the Adjustable Rate category and this is linked to the Retail Prime Lending Rate (RPLR). Changes in the RPLR leads to a revision of the interest rate on the loan every three months. If there is an increase in the interest rates, the interest component that is part of the EMI that you pay will also increase and vice versa when there is a reduction in the interest rate of the loan. The principal component will reduce which results in the extension in the term of the loan.
Who Comes under the Self-Employed Category?
- Self-Employed Professional (SEP)
- Engineer
- Consultant
- Chartered Accountant
- Lawyer
- Doctor
- Architect
- Company Secretary
- Self-Employed Non-Professional (SENP)
- Commission Agent
- Contractor
- Trader
HDFC Bank Home Loan MCLR:
The Marginal Cost of Funds-based Lending Rate (MCLR) announced by HDFC Bank with effect from November 7, 2017, are as given in the table below:
| Loan Tenure | MCLR Rate |
|---|---|
| Overnight | 7.80% |
| 1 Month | 7.80% |
| 3 Months | 7.85% |
| 6 Months | 7.90% |
| 1 Year | 8.10% |
| 2 Years | 8.20% |
| 3 Years | 8.40% |
HDFC Bank provides home loans with the 1-year MCLR as the base rate. To this, the bank adds a business margin to arrive at the actual home loan interest rate.
HDFC Home Loan Fee and Charges:
When referring to fees and charges attached to the HDFC Bank Housing Loan, their decremented magnitude and transparent nature are highly commended by the borrowers of this enterprising home loan product. Herein, a table of applicable fees and charges gives you a bird’s eye view of the overheads attached to your proposed loan,
| Item | Fees |
|---|---|
| Processing Fee | 0.50% of loan amount or Rs.2000 (whichever is higher) plus taxes. |
| Prepayment Charges- Adjustable Rate Home Loans (ARHL) |
|
| Prepayment Charges- Fixed Rate Home Loans (FRHL) |
|
HDFC Home Loan Repayment:
HDFC Bank offers a number of repayment options that are intended to help the borrower customize his/her repayments in line with his/her unique conditions. Flexibility is the key here and the customer is free to choose the option that works best for him/her. Summarily, the following repayment options are available:
Step Up Repayment Facility (SURF): This repayment scheme is based on the expected income growth of the borrower. In the initial years, you can pay substantially lower installments and still avail a high quantum of loan. Subsequently, the repayment increases proportionally with the assumed growth in the borrower’s income.
Tranche Based EMI: In case you purchase a property that is under construction, you are required to pay the interest amount for the loan till the final disbursement of the loan amount and then pay the EMIs thereafter. With tranche based EMI, customers can immediately start on the principal repayment and start paying EMIs on the cumulative disbursed amount.
Flexible Loan Instalments Plan (FLIP): FLIP is essentially a customized solution that is linked to the repayment capacity of the borrower which may change through the loan tenure. The repayment schedule is configured in such a way that the instalment is higher during initial years of the term and then decreases proportionally to the income.
Accelerated Repayment Scheme: This is a flexible scheme where you can increase the EMIs every year, proportional to your income growth which will enable you to repay the loan much faster.
Telescopic Repayment Option: Telescopic repayment plan will get the borrower a longer repayment tenure of up to 30 years which means the EMIs will be more affordable and the loan eligibility will also be enhanced.