How to Utilize HDFC Home Loan against Property

How to Utilize HDFC Home Loan against Property: A Comprehensive Guide

HDFC Bank offers home loans against property at an attractive rate of interest starting from 9.50%, long tenures, and loan top-ups, making it easier to afford a dream house. Calculating home loan EMI has now become easier with the HDFC Bank Home Loan EMI Calculator. Whether it is a 50 Lakh Home Loan EMI for 15 years or a 5 CroreHome Loan EMI for 8 years, the EMI Calculator can be used to ascertain the home loan interest rates and its EMI amount.

A Loan against property is basically a loan granted against property as collateral, which can be residential or commercial property. The property remains with the lender till the repayment of the entire loan amount, along with interest. It can be availed for a loan amount of up to 65% of property value and a loan tenure of up to 15 years. Also, both salaried and self-employed applicants for personal and business purposes. The loan amount can be utilised for any purpose, such as wedding, business, personal, purchase of a property, etc.

HDFC Bank Loan Against Property Highlights 
Interest Rate9.50% – 11.00% p.a. (floating)11.80%-13.30% p.a. (fixed)
Loan AmountUp to 65% of property value
TenureUp to 15 years
Processing FeeUp to 1% of the loan amount, i.e. a minimum of up to INR 7,500

Features and Benefits

Mentioned below are the features and benefits of an HDFC Home Loan against Property:

  • Purpose: Applicants with financial goals and requirements can get finances with the help of an HDFC Home loan against property. The HDFC Bank accepts both residential and commercial property as collateral.
  • Loan Amount: The borrowers can apply for a loan amounting to INR 10 crores at an attractive rate of interest.
  • Repayment Options: Customers can avail of low EMIs, longer tenures, or overdraft facilities on HDFC Loans against property.
  • Loan Processing: There are no hidden charges for loan processing, and all the charges are clearly communicated.
  • Customised Loan: Self-employed individuals can get their loans customised based on their needs. This enables easy repayment and also manages the business.
  • Prepayment Charges: It does not charge any prepayment charges for floating interest rate types and fixed interest rates. Customers will have to pay 2.5% of the outstanding loan amount, which can be done once six months have passed.
  • Processing Fees: Customers are required to pay 1.5% of the loan amount or INR 4500, whichever is higher, plus applicable taxes, as processing fees.
  • Overdraft Facility: Get an overdraft facility against your property that allows you to avail the loan amount up to an approved limit and pay the interest amount that has been used.

Eligibility Criteria

Mentioned are the eligibility parameters to be met in order to apply for an HDFC Home Loan against property:

  • The applicant’s minimum age to apply for an HDFC Home Loan against Property should be 21 years.
  • The applicant’s maximum age to apply for an HDFC Home Loan should be 65 years.
  • An applicant should be an Indian Resident.
  • An applicant can be any of the following:
  1. Salaried
  2. Self Employed Individual
  3. Self-Employed non-professional, i.e. commission agent, trader, contractor, etc.

Interest Rates for HDFC Home Loan against Property

Mentioned below are the interest rates and charges that will be applied in case HDFC Home Loan against Property:

  1. Floating Interest Rate
Minimum Interest Rate9.50% p.a.
Maximum Interest Rate11.00% p.a.
  1. Fixed Interest Rate
Minimum Interest Rate11.80% p.a.
Maximum Interest Rate13.30% p.a.

Documents Required 

Mentioned in the list of documents that are required to be uploaded along with the loan application form in the case while applying for an HDFC Home Loan against property:

  1. For Salaried
  • Identity or Residential Proof: 
  1. PAN Card
  2. Aadhaar Card
  3. Passport
  4. Voter ID
  5. Driving License
  • Income Proof: 
  1. Salary slips for the last 3 months
  2. ITR
  3. Statement of account of Salary for the last 6 months
  4. Form 16
  • Property Documents
  1. Approved plan
  2. No encumbrance proof
  3. Title deeds, including previous property documents
  1. Employment contract
  2. Appointment letter
  3. The last 6 months’ bank account statement shows a loan repayment history
  4. Processing fee cheque
  5. Own contribution proof
  6. Documents and declarations stating the end use of the loan
  7. For Self-Employed
  • Passport size photographs
  • ID/Residence Proof: 
  1. Aadhaar card
  2. Voter ID
  3. Driving license
  4. PAN card
  • Property Documents: There is no need for any encumbrance proof, title deeds, or approved plan, which includes previous property documents
  • Form 26AS
  • If the business entity is a partnership firm, a partnership deed is required
  • Income Proof: 
  1. ITR for the last 3 years, along with income computation
  2. Balance sheet
  3. Statement of Accounts of Profit and loss for the last 3 years with schedules or annexures
  4. Savings account statement
  5. Current account statement of business for the past 6 months
  • Memorandum and Article of Association
  • Own contribution proof
  • Details of present ongoing loans of the business entities and individuals
  • Business Profile
  • List of shareholders and directors with individual shareholding certified by the CA/CS
  • Declaration and documents mentioning the end use of the loan
  • Processing fee cheque

Fees and Charges

Mentioned below are the processing fees and charges to be paid while applying for an HDFC Home Loan against Property:

ParticularsCharges
Processing ChargesSalaried or Self-Employed:Up to 1.50% of the loan amount or INR 4,500, whichever is higher, plus applicable taxes.Minimum Retention Amount is either 50% of applicable fees or INR 4,500 + applicable taxes, whichever is higher.
Prepayment chargesNIL in case the prepaid amount is not greater than 25% of the principal amount2.5% if the prepaid amount is not greater than 25% of the principal amount
Dishonour chargesRange up to INR 300
Documents listRange up to INR 500 
Disbursement cheque cancellation chargeRange up to INR 500
PDC swapRange up to INR 500
Documents photocopyRange up to INR 500
Loan re-appraisal after 6 months of sanctionRange up to INR 2000

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