- 1. HDFC bank home loan: main features
- 2. Types of HDFC bank real estate loans
- 2.1. mortgage loan
- 2.2. renovation loan
- 23. Loan for home extension
- 2.4. recharge loan
- 2.5. Transfer of Home Loan Balance
- 3. HDFC Bank Home Loan Rates
- 4. HDFC Bank Mortgage Loan Interest Rates
- 4.1. Adjustable rate loan (ARHL)
- 4.2. Updated HDFC Mortgage Loan Interest Rates
- 4.3. TruFijo Loan
- 5. HDFC Bank Home Loan EMI Calculator
- 6. Eligibility Criteria for HDFC Bank Mortgage Loan
- 6.1. HDFC Bank Home Loan Eligibility Criteria
- 6.2. Maximum eligibility for LTV funding
- 7. Documents needed to avail the HDFC Bank Home Loan
Housing Development Finance Corporation (HDFC) is the largest private sector bank in India and the 10th largest financial services provider in the world by market capitalization as of April 2021. Headquartered in Mumbai, HDFC was one of the first banks to be recognized and approved by the Reserve Bank of India (RBI) in 1994. Today, the bank has over 6,300 branches, over 18,500 ATMs and a presence in over 3,200 towns and cities across India. If you want to take advantage of HDFC Bank home loan, this is all you need to know.
HDFC Bank home loan: main features
- HDFC offers customized home loans for professionals in the agriculture, horticulture, plantation and dairy sectors.
- Interest rates on mortgage loans start at 6.7% per annum.
- The maximum repayment period for mortgage loans is 30 years.
- HDFC provides finance for up to 90% of the property cost for property loans up to Rs 30 lakh
- The processing fee is up to 0.50% of the loan amount or Rs 3,000, whichever is greater, excluding taxes
- Borrowers can avail property loans from Rs 1 lakh to Rs 10 crore
- The home loan process is digital from start to finish
- Customers can choose between Adjustable Rate Home Loan (ARHL) and TruFixed Loan plans for interest rates
- Customers eligible forPradhan Mantri Awas Yojana(PMAY) can take advantage of the credit-linked subsidy scheme (CLSS)
- Late EMI payments can attract additional interest of up to 23% per annum
- An overdraft service is available for an amount between Rs 25,000 and Rs 1.25 lakh
- No prepayment fee on floating rate home loans. Two percent prepayment fee plus applicable tax on available fixed-rate mortgage loans
- Female home loan applicants are eligible for an interest rate grant of 0.05%
Types of HDFC bank real estate loans
HDFC Bank offers various types of home loans to meet various requirements
This is the main mortgage loan that the bank offers to buy a new property, resell a property or build a new home. Can be used individually or together.
Existing homeowners can avail the loans to undertake repair or renovation of their property. This loan covers items such as internal or external restructuring and repair. In addition, it also covers procedures for painting, waterproofing, roofing, plumbing, electrical, laying tiles and floors, railings and windows, among other activities.
Residential extension loan
The bank offers bespoke home loans for those who want to add extra space to their property. As building additional space can be expensive, the loan is intended to help existing homeowners.
The cost of a home can often go north, making the home loan amount already used insufficient. Therefore, existing customers can apply for an additional loan of up to Rs 50 lakh.
Transfer of Home Loan Balance
The bank allows borrowers from other banks to transfer their loan balance to HDFC through a simple digital process at no additional cost.
HDFC Bank Mortgage Loan Rates
The bank charges a processing fee of up to 0.50% of the loan amount, or Rs 3,000, whichever is greater. Additionally, 18%Tax on goods and services(GST) is charged in the processing fee. HDFC Bank also provides legal or technical assistance on mortgage loans to avoid discrepancies in the future. The applicant seeking advice is obliged to pay the fees required by the expert, not including the loan amount.
HDFC Bank Home Loan Interest Rates
Interest rates for home loans at HDFC Bank are broadly divided into two categories as mentioned below:
Adjustable rate loan (ARHL)
The ARHL is directly linked to that of the bank.Prime Retail Loan Rate(RPLR); therefore it is the floating or variable interest rate. The HDFC RPLR has been updated several times in 2022 thanks to fluctuations in thetasa repo, which now stands at 5.4 percent after a cumulative increase of 140 basis points. The bank last raised its RPLR by 0.25 basis points on Aug 9, 2022, so it currently stands at 17.45%. As the ARHL is subject to change based on market trends over the life of the mortgage loan, it is recommended that you consult a financial advisor before finalizing the plan.
Updated HDFC Mortgage Loan Interest Rates
|loan slab||Genre||Housing loan interest rates per year|
|Up to BRL 30 thousand||Women||8,10-8,60%|
|30 to 75 lakh rupees||Women||8,35-8,85%|
|Rs 75 lakhs and above||Women||8,45-8,95%|
Source: HDFC Bank website
In this plan, the bank offers a fixed interest rate for the home loan during the first two years after the automatic conversion of the loan to the ARHL module.
The interest rate on home loans depends on the following factors:
- Type of interest rate used
- Reference interest rate based on market factors
- Loan-to-value ratio (LTV)
- Applicant's credit score and financial profile
- repayment period
- property location
HDFC Bank Home Loan EMI Calculator
To know the value of your EMI in relation to the available mortgage loan,Click here
HDFC Bank Home Loan Eligibility Criteria
When making use of an HDFC Bank home loan, an applicant must ensure that he has a clean credit history preferably with a credit score of 700 or higher. In addition, the applicant must state any other responsibilities they may have to prove their true financial status.
The maximum loan repayment term is 30 years for a salaried and self-employed person. However, there are also other factors that affect the eligibility criteria.
HDFC Bank Home Loan Eligibility Criteria
|factors||salaried candidate||autonomous candidate|
|Age limit||21-65 years||21-65 years|
|minimum rent||10,000 rupees per month||BRL 2 thousand per year|
Source: HDFC Bank website
Maximum eligibility for LTV funding
|Home Loan Value Table||Eligibility for Financing|
|Up to BRL 30 thousand||90% of the value of the property|
|30 to 75 lakh rupees||80% of the property value|
|Rs 75 lakhs and above||75% of the property value|
Source: HDFC Bank website
Documents needed to avail the HDFC Bank Home Loan
The following documents must be submitted to avail mortgage loan at HDFC Bank-
- Proof of identity and residency through documents such as a valid passport, driver's license, election/election commission ID card, Pan card/Form 60 and Aadhaar card
- Income documents, such as pay stubs for the last three months, bank statements for the last six months, and the most recent Form 16 or IT statements
- A copy of the Builder's Assignment Letter or Buyer's Contract and receipts for payment made in the case of a new unit
- In the case of second hand, deeds of previous ownership, payment receipts and copy of the purchase and sale contract concluded
- If the borrower is building a house, the deed to the lot, copy of theassessment certificate, approved copy of the house plan and construction cost estimate compiled by an engineer or architect
- Proof of employment or letter of appointment if the borrower's employment period is less than one year.
- Passport photographs of the applicant and co-applicant(s), if any, along with the mortgage loan application form
- Copying of checks to process EMI in favor of HDFC Bank
HDFC Bank is known for its reasonably quick disbursement and loan approval processes. With the rules associated with home loans becoming less stringent, customers can easily take advantage of them. However, due diligence is advised when taking advantage of them to have a smooth experience.
Disclaimer: The opinions expressed above are for informational purposes only and are based on industry reports and related news. 99acres does not guarantee the accuracy, completeness or reliability of the information and will not be responsible for any action taken in reliance on published information.
How is Home Loan eligibility calculated? Housing loan eligibility is primarily dependent on the income and repayment capacity of the individual(s).There are other factors that determine the eligibility of home loans such as age, financial position, credit history, credit score, other financial obligations etc.What is loan eligibility criteria? ›
Eligibility criteria for Home Loan
Approvals are based on borrowers' income, credit profile, and existing relationship with the bank.
This fee is usually a fixed percentage of the loan amount and is non-refundable. HDFC charges a processing fee of 0.5% of the loan amount or Rs 3,000 (whichever is higher), plus applicable taxes.What is processing fee in EMI HDFC? ›
Convenience/Processing Fee – Rs 199 + GST is applicable on EMI transactions. Flexible Repayment Tenure - Choose a tenure according to your needs; 3 to 24 months, with pocket-friendly repayment options.How much does HDFC charge for EMI? ›
300 plus GST @ 18% (subject to change as per Govt. instruction) irrespective of the EMI outstanding. Pre-closure of the loan will currently attract a charge of 3% of the balance principal outstanding plus GST @ 18% (subject to change as per Govt. instruction).How is a loan fee calculated? ›
Loan fees are charged to originate a student loan and are calculated as a percentage of the total loan amount. The loan fees are deducted proportionately from each loan disbursement. The loan fee is subtracted directly from the loan before it is disbursed to you.What is an eligibility calculator? ›
Eligibility Calculator. Finds which credit cards and loans you're most likely to be accepted for - protecting your credit score. The only way to find out if you'll be accepted for a credit card or loan is to apply.What is eligibility credit? ›
Your eligibility is how likely you are to be approved for a specific credit deal, based on how your credit information matches up with the lender's criteria. Lenders won't share their criteria with you directly, so in the past you may have had to actually apply for credit just to find out if you're eligible.How is home loan eligibility calculated for salary? ›
You are eligible for a home loan up to 60 times of your net salary or monthly income. For instance, if your net salary is Rs. 55,000, you will be eligible for a loan of approximately Rs 33 lakhs. The lending bank will exclude medical and leave travel allowances, for they are meant for specific purposes.What are the 4 loan types? ›
The eight different types of loans you should know are personal loans, auto loans, student loans, mortgage loans, home equity loans, credit-builder loans, debt consolidation loans and payday loans.
- 1) SBI Home Loan.
- 2) HDFC Home Loan.
- 3) Axis Bank Home Loan.
- 4) ICICI Home Loan.
- 5) Bank of Baroda Home Loan.
- 6) PNB Home Loan.
- 7) LIC Housing Finance Home Loan.
- 8) Aditya Birla Home Loan.
- Apply A Surcharge. ...
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It is a one-time fee that is usually paid upfront – that is, you have to pay it out of your own pocket to the bank/NBFC instead of it being deducted from your loan amount. Some banks may call it administrative fee. Usually the processing fee will be charged only after your application is approved.Is there any processing fee for EMI? ›
In case of regular EMIs, the seller charges you a processing fee which ranges between 0.5% to 3% and an interest rate that can vary from 8% to 15%.Is processing fee included in EMI? ›
1. Processing Fee. EMI schemes are subject to a nominal processing fee, usually to the tune of a small percentage per ₹1000 of the amount you wish to convert into EMIs. Zero EMI offers are a notable exception to this rule.Is EMI processing fee refundable? ›
Interest already billed in a particular transaction is not refundable under any circumstances. The processing charges levied by the bank for using the No Cost EMI option cannot be refunded to the customer.Does HDFC charge processing fee for no cost EMI? ›
Convenience/Processing Fee – Customer will be charged a Processing Fee + GST on their HDFC Bank Debit Card EMI loan. The fee will be Rs. 299 (plus GST) or less will be applied at transaction level.What is EMI convenience fee? ›
What Is a Convenience Fee? A convenience fee is a fee charged by a seller when a consumer pays with an electronic payment card rather than by a standard form of payment accepted by the business. Standard payments include cash, check, or an Automated Clearing House (ACH) transfer.What is HDFC home loan mod fee? ›
MOD charges for a home loan might be anything from 0.1 per cent to 0.5 per cent of the entire amount of the loan.
Loan processing charges: The bank has to bear some administrative costs while processing and sanctioning your loan. This is usually a small amount, which varies from bank to bank and typically costs about 0.5% to 2.50% of the total amount of the loan.What is processing fee in home loan? ›
The processing fee is determined as a small percentage of the loan amount. The percentage may vary across lenders. In India, the processing fee is generally around 0.5% of the loan amount (plus GST).What is a normal loan processing fee? ›
How Much Are Origination Fees on Average? Loan origination charges usually run about one-half to one percent of the total cost of the loan. On a $250,000 mortgage, you're going to pay an origination fee between $1,250 to $2,500 or 0.5 to 1.0 percent/point to the lender for the loan.What is conditional eligibility? ›
Conditional eligibility will give you an estimate of how much money you may be able to borrow to buy a property. We'll give you a response straight away - all we need is some basic information about your income, expenses and liabilities.What is eligibility matrix? ›
The Eligibility Matrix provides the comprehensive LTV, CLTV, and HCLTV ratio requirements for conventional first mortgage loans eligible for delivery to Fannie Mae.What is a good credit score? ›
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.What are eligibility checks? ›
Eligibility checking allows you to see your chances of being accepted for a certain credit product before you apply. It's quick and easy to do, free, and it won't affect your credit score.What is your eligibility means? ›
noun. el·i·gi·bil·i·ty ˌe-lə-jə-ˈbi-lə-tē : the quality or state of being eligible : fitness or suitability to be chosen, selected, or allowed to do something. The applicants must meet all requirements for eligibility. …What is the meaning of Eligibility test? ›
Eligibility Test means the test to determine the eligibility of a Receivable for the purposes of Section 1.13 hereof, that test, being as follows: no payment due on said Receivable remains unpaid more than sixty (60) days from the specific date on which such payment was due pursuant to the terms of said Receivable.Is salary slip enough for home loan? ›
A home loan can be yours even without monthly salary slip.
According to the guidelines issued by the Reserve Bank of India (RBI), the LTV ratio for home loans can go up to 90% of the property value for loan amounts of Rs. 30 lakh and below.How is loan against property eligibility calculated? ›
- CIBIL score. Minimum 750.
- Age. Between 28 to 60 years for salaried* and between 25 and 70 for self-employed*
- Work experience (for salaried) Minimum 3 years at a public or private sector company or MNC.
- Business continuity (for self-employed) Minimum 5 years in the current enterprise.
Lenders will consider a prospective borrower's income, credit score, and debt levels before deciding to offer them a loan. A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card.What are 7 types of loans? ›
Types of secured loans
- Home loan. ...
- Loan against property (LAP) ...
- Loans against insurance policies. ...
- Gold loans. ...
- Loans against mutual funds and shares. ...
- Loans against fixed deposits.
Definition of loan can be described as a property, money, or other material goods that is given to another party in exchange for future repayment of the loan value plus interest and other finance charges.Is HDFC a good bank for home loan? ›
Most people cannot buy a home with available funds and rely on banks like HDFC to borrow home loans. Home loans offered by HDFC bank are good since they come at different interest rates, loan tenures, and concessions or offers based on the applicant's profile. What are the benefits offered by HDFC Bank home loan?Why HDFC Bank is best for home loan? ›
Features and benefits of HDFC Bank home loan
Easy and transparent process; no hidden charges. Pre-approval of home loan available. Free and safe document storage. Competitive interest rates.
As per the guidelines of RBI, you cannot get 100% home loan from a bank. So, to answer the question: which bank provide 100 percent home loan? ' the answer would be no bank can offer a 100% loan as per the protocol.Is processing fee negotiable? ›
It's the only area of credit card processing expense that you can negotiate. The processing markup includes the processor's rates, credit card transaction fees, monthly fees, and any fees associated with software, gateways or processing equipment. That is, any fees that the processor can control.
High Risk Processing
If your business is in the "high-risk" category, it's certain that you will have higher processing rates. If a processing company thinks you may lose them money, they'll charge you more to offset the risk. High-risk businesses can include: Industries with a high risk of chargebacks and fraud.
To put it simply, a processing fee is a pre-set amount that a business pays every time a customer uses a credit or debit card to pay for their goods or services. The processing fee can be split into two parts: the interchange. The fees charged by the Issuer to the Acquirer. fee and the assessment fee.Are processing fees mandatory? ›
Processing fee is a lump sum amount that you are required to pay as a proportionate charge on the requested loan amount. Processing fee of 0.50% to 2.00% of the loan amount is charged as the cost of credit appraisal and loan processing. Furthermore 18% of GST on this fee is also levied.Can processing fees be waived? ›
Yes, you can request a waiver of Freedom of Information Act (FOIA) processing fees.Is charging a processing fee legal? ›
Credit card surcharges are optional fees added by a merchant when customers use a credit card to pay at checkout. Surcharges are legal unless restricted by state law. Businesses that choose to add surcharges are required to follow protocols to ensure full transparency.How is EMI calculated formula? ›
Calculating EMI has a Simple Formula, Which is As Follows: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]. Here, P is the original loan amount or principal, R is the rate of interest that is applicable per annum and N is the number of monthly installments/ loan tenure.How EMI is calculated by which method? ›
How is EMI calculated? The mathematical formula to calculate EMI is: EMI = P × r × (1 + r)n/((1 + r)n - 1) where P= Loan amount, r= interest rate, n=tenure in number of months.What is the method of calculating EMI? ›
The EMI amount is calculated by adding the total principal of the loan and the total interest on the principal together, then dividing the sum by the number of EMI payments, which is the number of months during the loan term.How does HDFC smart EMI works? ›
Convert large purchases on your HDFC Bank credit card into SmartEMI and enjoy stress-free repayment. Enjoy attractive interest rates, among the lowest in the market. Get credit into your HDFC Bank account in seconds and repay conveniently over 9 to 36 months. The loan is pre-approved so no documentation is required.How is Home Loan EMI calculation manually? ›
You can calculate your home loan EMI amount with the help of the mathematical formula: EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1], where, P, R, and N are the variables. The EMI value will change each time you change any of the three variables.Are the 2 methods of EMI? ›
There are two ways to calculate EMI: the flat-rate method and the reducing-balance (or reduce-balance) method.
The formula to calculate EMI: E = P x r x ( 1 + r )n / ( ( 1 + r )n - 1 ) where E is EMI, P is Principal Loan Amount, r is monthly rate of interest (For eg. If rate of interest is 14% per annum, then r = 14/12/100=0.011667), n is loan duration in number of months.What is the time period of home loan? ›
Usually, the minimum tenure for home loan is 2 years, while the maximum tenure can go up to as much as 30 years.What is no cost EMI? ›
This means, when repaying your purchase cost, you only have to pay the actual cost of the product without any interest. On the other hand, with a standard EMI facility, you would have to pay an additional cost of about 10-15% over the original price of the product.What are 3 different methods of calculating interest? ›
- Fixed Flat.
- Declining Balance.
- Declining Balance (Equal Installments)
in an effort to attract more customers, the banks and NBFCs offer two types of EMI payment options - EMI in advance and EMI in arrears.How do I calculate interest? ›
Here's the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).Does HDFC charge processing fee on no cost EMI? ›
While availing the no-cost EMI facility, you will not have to pay any down payment, processing fee, or an interest.What is the eligibility for HDFC smart EMI? ›
- NetBanking: Login to your NetBanking account and check your SMART EMI eligibility under Cards - Credit Cards - Transact - SMART EMI.
- PhoneBanking: our 24x7 PhoneBanking service will assist you towards the process to verify your eligibility.
Minimum amount: ₹5,000. Maximum amount: ₹5,00,000.