HDFC Bank Home Loan

About HDFC Bank

Headquartered in Mumbai, HDFC Bank Limited is an Indian banking and financial services company. Being the largest private sector lender by assets, HDFC has 84,325 employees, 4,727 branches and 12,220 ATMs across 2,666 cities.  It was ranked 69th in 2016 BrandZ Top 100 Most Valuable Global Brands.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt either for floating type of interest or fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to HDFC Bank Home Loans

HDFC Bank offers a wide range of services in the personal loan segment. It is the most preferred bank by all kinds of people for any financial service. HDFC Bank provides customised home loan solutions for purchase of a house, construction and extension of dwelling units. Packed with exclusive benefits, HDFC Bank Home Loans are tailor made, catering to the needs of various customers.

Advantages of HDFC Bank Home Loans

• Attractive interest rates with floating and fixed type based on your preference
• Low processing fees
• Less paperwork
• No prepayment charges
• Easy home loan balance transfer
• Transparent application process
• Flexible repayment options
• Door step assistance provided

Features of HDFC Bank Home Loan

Key Highlights

Objective:

HDFC Bank home loan aims to help millions of people achieve their dream of owning a house.

Loan Amount:

Depending on your repayment capacity

Loan Tenure:

Up to 30 years of repayment period is available under HDFC Bank home loan scheme.

Prepayment Charges:

No penalty is levied on prepayment.

Processing Fees:

0.50% of the loan amount or INR 11,800, whichever is minimum.

Interest Type:

Floating and Fixed

Home Loan Transfer:

You can transfer your home loan from other bank to HDFC Bank at ease.

Top Up Home Loan

HDFC Bank allows you to get additional funding over your existing home loan. It can be used to renovate your house, fund your child’s education, new home theatre system etc.

Special Home Loan for Agriculturists

• A special home loan for farmers to build or buy their own house.
• Loan eligibility is decided based on agricultural land owned and the type of crops being cultivated by them farmers.
• No mortgage of agricultural land is required for home loans.
• Income Tax Returns is not mandatory for farmers applying for home loans.

Interest Rate on HDFC Bank Home Loans

Eligibility Criteria:

To avail the home loan from HDFC Bank, you need to have the following eligibility criteria.

• You should be over 21 years of age.
• Steady source of income

Documents Required to Apply for HDFC Bank Home Loans

Important documents to be submitted while applying for home loan with HDFC Bank

• Completed loan application
• 3 Passport size photographs
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Form 16/IT returns for the last two financial years for salaried employees
• IT returns for the three years for self-employed professionals
• Property tax receipt
• Proof of business address for non-salaried individuals
• Personal assets and liabilities statement

For guarantor (wherever applicable):

• Personal Assets and Liabilities Statement
• 2 passport size photographs
• Proof of identification as above
• Proof of residence as above
• Proof of business address as above
• Signature identification from his/her present bankers

EMI Payment Methods

Your HDFC Bank home loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with HDFC Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the HDFC Bank account you specify.

Electronic Clearing Service (ECS):

This mode can be used if you have a non-HDFC Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-HDFC Bank account at your nearest HDFC Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for HDFC Bank Home Loan?

You can either apply online or visit a nearby HDFC Bank branch for the application. You can also download the home loan application form from the HDFC Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

Summary of HDFC Bank Home Loans

With attractive interest rates and low processing fees, HDFC Bank caters to the needs of various sections of people. Floating and fixed type of interest rate are available according to the preference of the customers. The borrowers can prepay the HDFC Bank home loan without any penalty. HDFC Bank home loan is the best option to buy or construct your dream house.

HDFC Bank Home Loan FAQs

1. What are processing fees on HDFC Bank Home Loans?

0.50% of the loan amount or INR 11,800, whichever is minimum is charged as processing fee.

2. Is there penalty for prepaying the HDFC Bank Home Loan?

No penalty is levied for prepaying the HDFC Bank Home Loan.

3. Can I top up my existing Home Loan?

Yes, you can get additional funding on your existing home loan.

4. What is the maximum loan repayment period for HDFC Bank home loans?

The maximum repayment period is 30 years.

5. How Can I apply for HDFC Bank home loan?

You can either apply online or visit a nearest HDFC Bank branch and take the help of the bank’s representative.

6. What is the maximum loan amount provided by HDFC Bank?

No cap on the maximum loan amount and it depends on your repayment capacity which is decided by the bank.

7. Does HDFC Bank facilitate balance home loan transfer?

Yes, you can transfer your existing home loan to HDFC Bank.

8. Can I get tax benefits from HDFC Bank Home Loan?

As per Section 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to INR 150,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions.