HDFC Bank Home Loan

Features & Benefits of HDFC Bank Home Loan

HDFC Bank offers the following features and benefits to the customers:

• Low in Interest Rates: HDFC offers one of the most competitive interest rates for home loans, starting at just 8.40 % per annum. This rate ranks among the best in the market, offering you the opportunity to make significant long-term savings and effectively reduce the overall cost of your loan. Hence, you can confidently proceed to purchase your dream house without worrying about hefty EMIs.
• High in Loan Tenure: HDFC Bank grand you the freedom to tenure your home loan based on your repayment capability. I.e., with a range of 5 to 30 years, you can adjust your home loan EMIs that align with your monthly budget and effectively minimise the chances of default. Moreover, you have the flexibility to begin with lower EMIs and gradually increase them as your income grows, ensuring a comfortable repayment journey.
• Generous Loan Amount: If you are looking for a home loan with a substantial loan amount, HDFC Bank may be the ideal choice for you. As Apply for HDFC Bank home loan, you can avail of 90 per cent of the property cost or loan amount above Rs. 75 lahks. However, it is crucial to recognise that the ultimate loan quantum is contingent upon several factors. These factors include your CIBIL Score, income level, property demand, and overall creditworthiness.
• Completely Online Process: Say goodbye to tedious paperwork and time-consuming bank visits and instead embrace the convenience of HDFC Bank home loan online apply. You can apply for a home loan online and avail of the end-to-end digital process and 24×7 assistance. The process would hardly take a few minutes; once your application is approved, the funds will swiftly be transferred to your account.
• Moderate Eligibility Criteria: When it comes to HDFC Bank home loan eligibility criteria, the Bank won’t demand much; only the requirement is enough. Typically, HDFC Bank home loan requirements include factors such as age, income, credit score, and property value. To check your eligibility, you can utilise the HDFC Bank home loan eligibility calculator. This calculator is conveniently available on the official HDFC Bank website or on the Urban Money website, enabling you to assess your eligibility with ease.
• Multi-Purpose Loans: HDFC Bank home loans allow you to do much more than just buy a property or house. You can avail of HDFC housing finance to purchase a ready-made or under-construction housing property, buy a plot and construct a house on it, extend or renovate your house, transfer your outstanding house loan balance, and much more.
• Tax Benefit: By availing of an HDFC Bank home loan, you become eligible to claim tax deductions in accordance with the provisions of Section 24(b) of the Income Tax Act, 1961, or under Section 80C of the same act, subject to specific conditions and limits. It is important to note that this deduction becomes available once the construction of the property is completed and you have obtained the possession certificate. To gain further insights into your tax benefits, you can utilise the Urban Money tax benefit calculator, available on the official Urban Money website.

Don’t miss to Check: HDFC Bank Home Loan Interest Rates

HDFC Bank Home Loan – An Overview

Buying a house is a dream for many individuals. However, giving such a dream into life requires a lot of financial planning. And taking a Home Loan may be the only viable option for them to accommodate their dream home within their budget.

A home loan refers to a sum of money borrowed from a financial institution to buy or construct a house. It offers substantial financing for longer tenures at fixed or variable interest rates to assist homebuyers. Typically, a home loan is categorised as a secured loan, and the property being acquired serves as collateral that remains with the lender until the borrower has fully repaid the loan amount.

Applying for an HDFC Bank home loan ultimately simplifies the process of fulfilling your dream of buying or constructing a house. With their offerings of generous loan amounts, competitive interest rates, and flexible repayment options, HDFC Bank offers tailor-made home loans that eliminate any potential hassles. Moreover, the Bank requires minimal documentation and ensures instant approval, providing you with a seamless experience throughout the loan application process.

Eligibility Criteria and Factors Affecting HDFC Bank Home Loan Eligibility Criteria

Applicants need to meet certain eligibility criteria to apply for an HDFC Bank home loan. The following are the HDFC Bank home loan eligibility criteria:

• Age: To be eligible for an HDFC Bank home loan apply online/offline; the primary applicant must be at least 21 years old at the time of application, with a maximum age limit of 65 years. As for the co-signer, they should be at least 18 years old to be eligible.
• Profession: The HDFC Bank home loan is available for both salaried individuals and self-employed professionals. Salaried professionals include doctors, lawyers, engineers, chartered accountants, architects, consultants, company secretaries, etc. On the other hand, self-employed professionals include commission agents, contractors, traders, and so on.
• Income: The minimum monthly salary requirement for the HDFC Bank home loan is ₹10,000. For self-employed individuals, the minimum annual business income required is ₹2 lacks. It is important to note that the loan amount is determined based on the present and future income of the applicant, which plays a significant role in the loan assessment process.
• Employment Stability: A stable job with a minimum of 2 years of work experience is considered positive. On the other hand, self-employed individuals need to demonstrate 3 years’ IT returns and at least 2 years’ audited Profit and Loss Account Statements and Balance Sheets of the business entity.
• CIBIL Score: CIBIL Score is a 3-digit numeric summary of your credit history, rating and report. It spans a range from 300 to 900, with a higher score indicating a more favourable credit rating. The closer your score is to 900, the stronger your creditworthiness is perceived to be. However, to be eligible for a home loan from HDFC, your CIBIL score should range somewhere between 720 to 750.
• Overall Financial Position: When you apply for an HDFC Bank home loan, the bank assesses your ability to repay the loan based on your overall financial position. This evaluation entails the factors such as your credit card bills, personal loans, or any other existing financial obligation. It is important to note that reducing your existing debt can greatly increase your chances of securing a home loan.
• Co-Applicants: The co-applicant is a person who applies along with you as a borrower of the home loan amount. Applying with a co-applicant, such as your spouse, brother, or any other folks of you who have a steady income, helps enhance your eligibility for a home loan, as the bank can consider the income of both applicants while determining the loan amount and repayment capacity. Ultimately, this boosts the lender’s confidence and increases the likelihood of securing the desired loan amount.

Types of HDFC Bank Home Loans

HDFC Bank home loan has several schemes to cater to varying customer needs. Whether you’re looking to buy a new home, renovate an existing property, or transfer an existing home loan, HDFC Bank provides flexible options. Each HDFC Bank home loan type is designed to make home financing easier and more accessible. Have a look at the kinds of HDFC Bank housing loans available:

NRI Home Loan

Features	You can buy property anywhere in India. Get expert legal and technical counselling to assist with property search.
EMI	The EMI for every ₹1 lakh loan starts at ₹787.
Required Documents	Depending on your status, you may need to provide relevant documents, such as an OCI or PIO card.
Income Proof	Salary slips, bank statements, employment contracts, or tax returns, depending on your job and country of residence.
Property Documents	Sale agreement, property ownership proof, and other property-related documents

Note: For interest rates and processing charges, please contact HDFC Bank for the latest updates. 

Rural Housing Loans

Features	The loan requires minimal documents for a smooth process. Borrowers can choose a loan tenure of up to 30 years. It offers a flexible loan amount. The loan covers up to 90% of the property cost.
Interest Rates	Starts from 9.40% to 10.75% p.a.
Fees and Charges	From 0.50% to 1.50% for salaried and self-employed non-professionals
Documents Required	Identification and address proof, including a valid passport, driving license, voter ID, or Aadhaar.
Loan Processing Charges	Max. of 1% of the loan amount

Explore more about Rural Housing Finance Scheme by HDFC Bank.

Plot Loans

Features	You can borrow up to 80% of the plot’s value. The loan tenure can go up to 15 years. Adding an earning co-applicant can increase your loan eligibility.
Interest Rates	Most plot loans start from 8.75% to 9.65% p.a.
Fees and Charges	Ranges from 0.50% to 1.50% for salaried and self-employed non-professionals.
Discount	10% off on service charges for senior citizens.
Loan Eligibility	Age must be between 18-70 years.

Home Renovation Loans

Features	You can borrow from as low as ₹1 lakh up to ₹10 crores. Choose a repayment period of up to 15 years. Funding covers up to 100% of the renovation estimate for existing customers.
Interest Rates	Starts from 8.75% to 9.65% p.a.
Fees and Charges	Ranges from 0.50% to 1.50% for salaried and self-employed non-professionals
Identity and Address Proof	Passport, Driving License, Voter ID, Aadhaar Card, or Job Card from NREGA.
Nationality	Only for Indian residents.
Delayed Payment Charges	18% per annum on any overdue amount.

Home Extension Loans

Features	Get up to 75% to 90% funding for various loan amounts.  The repayment period can go up to 30 years. Applicants need to be 18–70 years old at the time of loan maturity.
Interest Rates	Starts from 8.75% to 9.65% p.a.
Fees and Charges	From 0.50% to 1.50% for salaried and self-employed non-professionals
Senior Citizen Discount	10% off on service charges
KYC Documents	PAN card or Form 60
Loan Tenure	Up to 20 years
Property Documents Required	Sale deed, agreement to sell, and other legal property documents.

Explore more about Home Extension Loans by HDFC Bank.

Home Loan Top Up

Features	The loan tenure can go up to 30 years. Adding a female co-owner can help reduce the interest rate. A top-up loan requires fewer documents than a new loan. You can apply 12 months after your home loan disbursement.
Interest Rates	Starts from 9.05% to 10.70% p.a.
KYC Documents	PAN Card or Form 60 if you don’t have a PAN.
Loan Processing Fee	Up to 1% of the loan amount, with a minimum of ₹7,500.
Identity & Address Proof (Any one)	Passport (valid), Driving License (valid), Voter ID, Job Card issued by NREGA, and Aadhaar Card (voluntary submission)
Loan Maximum Limit	₹1 crore or the amount of existing home loan.

Reach Home Loan

Features	A female co-owner as a co-applicant may reduce the interest rate. Suitable for micro-entrepreneurs and salaried individuals. Funding of up to 80% of the property cost. Loan tenure up to 30 years for home purchases and extensions.
Interest Rates	Starts from 10.25% to 13.85% p.a.
Processing Fee	Up to 2% of the loan amount plus taxes.
Age Eligibility	Applicant must be between 21 to 65 years.
Nationality	Indian Resident

Explore more about Reach Home Loan Scheme by HDFC Bank.

Disclaimer: Interest rates, processing fees, and other charges are subject to change by HDFC Bank. Please contact HDFC Bank for the latest updates on applicable rates, fees, and terms.

HDFC Bank Home Loan Fees and Charges

Before you apply for an HDFC Bank home loan, it’s essential to be aware of the various fees and charges associated with the loan. And following are the fees and charges of HDFC Bank home loan:

Type of Charge	Amount
Interest rates	8.40 % p.a onwards
Loan amount	Based on the customer profile
Processing fee	Up to 0.50%
Max Tenure	30 Years
Pre-Payment/foreclosure Penalty	Upto 2%
Cheque Bounce Charges	Rs 200

Documents Required for HDFC Bank Home Loan

The following are the important documents required for HDFC Bank home loan that all the applicants/co-applicants need to submit along with the signed application form for the loan approval:

Proof of identity 

• Passport
• Voter Card 
• Adhaar Card 

Proof of residence 

• Ration Card
• Adhaar Card
• Bank Account Statements
• Property Tax Receipts
• Utility Bills

Proof of income 

• PAN Card
• Last 3 months’ Salary Slips
• Last 6 months Bank Statements showing salary credits
• Latest Form-16 and IT returns
• Income Tax Returns along with computation of income for the last 3 Assessment Years (Self-employed person)
• Last 3 years Balance Sheet and Profit & Loss A/c Statements, with Annexures / Schedules (Self-employed person)
• Last 6 months’ Current A/c Statements of the business entity and Savings Account Statements of the individual (Self-employed person)
• TAN Card (Self-employed person)

Proof of Property 

• Title Deeds of the Plot 
• Proof of no encumbrances on the property
• Copy of the plans, approved by the Local Authorities
• Copy of the agreement to sell (if already executed)

Other Documents

• Own Contribution Proof
• Passport-size photograph of the applicant / co-applicants
• Cheque for processing fee favouring HDFC Bank Ltd.

For more details about the documents required for HDFC Bank home loan, please contact the nearest branch of HDFC Bank.

How Does the EMI Calculation Work for HDFC Bank Home Loan?

HDFC Bank adopts the Equated Monthly Instalment (EMI) method for loan repayments. I.e., borrowers make a fixed EMI payment each month, which comprises both the principal amount and the applicable interest. And the calculation is based on a standard formula that takes into account the loan amount, the interest rate, and the loan tenure. The formula is:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

• P = Loan principal amount
• R = Monthly interest rate
• N = Loan tenure in months

Notably, by utilising online EMI calculators, individuals can effortlessly determine the Equated Monthly Instalment (EMI) for their HDFC Bank Home Loan. To access this convenient tool, you can visit either the Urban Money website or the official website of HDFC Bank.

Don’t miss to Check: HDFC Home Loan EMI Calculator

Balance Transfer HDFC Bank Home Loan

A balance transfer is a process of transferring the outstanding home loan balance from one lender to another in order to avail of lower interest rates, longer tenure, additional top-up loan, or better terms. By opting for a balance transfer with an HDFC Bank home loan, you can effectively reduce your monthly EMI amount and achieve substantial savings on the overall interest cost of your home loan.

The balance transfer process involves the following steps:

• You need to inform your current lender that you want to transfer your home loan and obtain a no objection certificate (NOC) or consent letter from them.
• You need to apply for a home loan with the new lender and submit the required documents, such as KYC, property papers, loan statement, NOC, etc.
• The new lender will verify your documents and eligibility and pay off the outstanding loan amount to your current lender.

You can use the Home loan balance transfer calculator to compare the benefits of transferring your home loan from one lender to another. You just need to enter the details of your existing loan and the new loan offer, and the calculator will show you how much you can save by doing a balance transfer.